A.M. Executive Briefing - Nov. 8
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Presidency Hinges on Florida Recount
After one of the wildest nights in the history of U.S. presidential elections, Republican George W. Bush holds a very narrow edge in Florida, and that state should decide the outcome. A recount is underway this morning, and Florida's 25 Electoral College votes are expected to decide whether Bush or Democrat Al Gore becomes the next president of the United States.The race is neck and neck, with Gore holding a slight lead in the nationwide popular vote but Bush leading in enough states that whoever gets Florida should win the presidency. By last count of CNN, ABC and NBC networks, Gore had 260 of the 270 electoral votes needed, with Oregon's seven still too close to call. Bush had 246, and the reported lead in Florida.
Networks looking at computer models first called Florida for Vice President Gore early Tuesday evening, but later pulled it back into the undecided column after protests from Texas Gov. Bush. In the early hours of Wednesday, they reportedly called the state for Bush, which was enough to trigger a concession call from Gore to Bush.
Gore also lost his home state of Tennessee, whose 11 electoral votes would have been enough to seal his victory. But given that this is one of the closest races in U.S. history, any single state's switch could have made the difference. Transport Topics
Democrats Win Historical Races but Republicans Keep Senate
Taking historic victories were Hillary Clinton, who became the first first lady to win an elected office, and Missouri's late Gov. Mel Carnahan, who became the first deceased candidate elected to the U.S. Senate. Carnahan's widow will likely be appointed to fill his Senate seat, the story said.
The Democrats actually won a 49th Senate seat, that belonging to Connecticut's Joseph Lieberman, Al Gore's running mate. Should the Gore/Lieberman ticket win the presidential election, the state's Republican governor will name a Republican replacement for Lieberman, AP said. Transport Topics
Republicans Keep Control of House
The U.S. House of Representatives have kept their Republican majority. However, mixed reports from MSNBC and CNN say each party has gained an additional seat. The final results are expected to be 222 Republican seats, 211 Democratic seats and 2 independents. Two more seats are vacant.Since Republicans still control the House, the implications for trucking legislation means new chairs for transporation-related committees. Alaska's Don Young, a Republican, is expected to chair the Transportation and Infrastructure committee. Per the GOP term limit, the current chair, Republican Bud Shuster of Pennsylvania, will step down. He will however, chair the Ground Transportation Subcommittee. Both Young and Shuster were re-elected Tuesday night. Transport Topics
Containers Pile Up in Montreal as Independent Truckers Keep Picketing
Picket lines of drayage drivers - spurred by union organizing efforts - continued at the Port of Montreal in defiance of a provincial law ordering the truckers to return to work, the New York Times said Wednesday.Containers are piling up at the docks and warehouses, with the backlog reaching 13,000 since Oct. 23, the paper said, adding that the port typically moves 1,200 to 1,500 containers a day. Transport Topics
New Ergonomics Draft Even Worse, UPS Says
The Occupational Safety and Health Administration has issued a new version of its proposed ergonomics rule, and at least one trucking attorney finds it more worrisome than the first, according to Wednesday's Wall Street Journal. The leaked draft is not an improvement, but a "considerable step backward," Baruch Fellner, who represents United Parcel Service (UPS), told the paper.But the new draft would make life easier for business in some ways - for example, a provision allows slightly reduced pay and full benefits for only 90 days to disabled employees, instead of the six months in the original. Also, pre-existing conditions would only be covered if they were aggravated "significantly."
A detailed set of specifications would be used to determine if tasks are hazardous - for example, kneeling or squatting for more than two hours a day or using a keyboard and/or computer mouse "in a steady manner for more than four hours total in a workday." Such activities, though, would not be outlawed.
The list of covered injuries has been expanded, blood vessels would be covered as well as the musculoskeletal system, according to the Journal. Transport Topics
Creditors Declare Daewoo Motors Bankrupt
South Korean automaker Daewoo Motor was declared bankrupt Wednesday, according to CBS MarketWatch. Creditors abandoned the company after the labor union refused to go along a management bailout plan that called for significant job cuts, the report said. Daewoo, which is of South Korea's second-largest automaker, had defaulted on several debt payments in recent days.Analysts say at least 5,000 employees will lose their jobs, CBS MarketWatch reported.
The liquidation of assets is expected to take until the end of 2000. The turn of events may strengthen the bargaining position of General Motors (GM), which is negotiating a possible acquisition of Daewoo. The Associated Press says GM reportedly bid upwards of $5 billion for the entire company earlier this year, but now analysts say GM can pick and choose which of Daewoo's assets it will buy.
South Korea's stock market predicted Daewoo Motor's bankruptcy, so it will not likely have any affect on share prices. Transport Topics
Chancellor Acquires Remarketing Rights for Medium-Truck Portfolio
Chancellor Corporation has acquired remarketing rights to several portfolios with a total value of over $200 million. The portfolio contains approximately 8,000 vehicles, most of which are Class 3-6 trucks. Through this agreement, Chancellor will administer all remarketing, re-leasing, and maintenance of these vehicles.
Craig Jackson, vice president of remarketing, said the agreement will help the company keep up with major changes in distribution patterns due to the rise in e-commerce, which will see more good being transported by smaller trucks. "The agreement provides Chancellor with an immediate entry strategy into another market," he said.
Chancellor is a Boston-based transportation trading company providing equipment finance and fleet management services. Transport Topics
Pacer's Revenue Rises in 3Q; Firm Plans IPO
Pacer International, a privately held North American freight transportation provider, reported an 18.2% increase in gross revenues for the third quarter. Revenues for the quarter were $308.2 million, compared to $260.8 million a year ago. The increase was due to increased business in intermodal marketing and truck brokerage operations. Management also announced Wednesday that the company intends to file a registration statement with the Securities and Exchange Commission for an initial public offering. The size of the offering has yet to been determined, the company said.
The company also said it is in discussions to buy Rail Van, Inc., an Ohio-based logistics provider.
Pacer International offers intermodal, trucking, warehousing, consolidation, freight-forwarding, customs brokerage, ocean transportation brokerage, and other logistics services on a retail basis. The company is based in Walnut Creek, California. Transport Topics
Not Much Change in Oil Inventories or Prices
Crude oil prices changed little after the American Petroleum Institute's weekly report revealed little changes in U.S. inventories, which still remain near 24-year lows, Bloomberg reported Wednesday.U.S. crude oil fell as much as 19 cents to $33.21 per barrel on the New York Mercantile Exchange, while Brent crude dropped 12 cents to $31.56 a barrel on London's International Petroleum Exchange, the story said.
One trader said the uncertain U.S. presidential election should have little effect on oil prices; while George W. Bush is likely to be more sympathetic to the oil industry, that should not drive the market, Bloomberg noted. Transport Topics
$3.8 Billion Transportation Initiatives Fail in N.Y., Pass in N.J.
New York voters rejected a transportation bond issue, but their New Jersey neighbors voted "overwhelmingly" to supply hundreds of millions of dollars annually for roads, bridges and transit projects, the New York Times said Wednesday.Both states' measures were for $3.8 billion. The New Jersey vote will redirect sales taxes as well as taxes on wholesale petroleum products to a dedicated transportation fund.
In New York, the ballot question would have allowed the state to issue that amount in general obligation bonds, with $1.6 billion going to the authority that runs mass transit systems. Critics of Gov. George E. Pataki said he did not campaign hard enough for the measure, the paper said. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Possible Nigerian Export Drop Drives Oil Prices Up
- Airborne Express Signs Multi-Million-Dollar Deal for Delivery Service
- Key House-Senate Panels Ride on Election Results
- Standard Automotive Reports Dip in 3Q Earnings
- Technician Reporting Not Required by New Vehicle Safety Law
- Goodyear Denies Silent Recall for Light Truck Tire
- Ford Putting Payload Info on SUVs
- DaimlerChrysler Signs Agreement with Iranian Axle Maker
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