A.M. Executive Briefing - Oct. 13

• Headlines From Yesterday's P.M. Briefing

Oil Prices Linger Near 10-Year High

U.S. crude oil actually fell a few cents, but the six-cent drop came after a 49-cent rise and prices were around $36.55 per barrel in early trading on the New York Mercantile Exchange, the story said. Brent crude on London's International Petroleum Exchange also fell 27 cents, after a 48-cent increase, to $35.07 per barrel, Bloomberg said. Transport Topics

British Embassy in Yemen Shaken by Explosion

Meanwhile, the death toll in the attack on the U.S. ship rose to seven sailors confirmed dead, and 10 more missing were presumed dead, the Associated Press reported Friday. That explosion was determined to be from an external source, strengthening the theory that it was indeed a terrorist attack, the story said.

Also, after Israeli troops remained prepared for Palestinian retaliation Friday after attacking Yasser Arafat's compound and other Palestinian targets in the West Bank and Gaza Strip Thursday, Bloomberg reported. Transport Topics

Boeing Nears Deal With UPS for Cargo Planes

The deal is expected to be concluded soon and would be worth approximately $1.5 billion, the story said. Boeing would convert MD-11 passenger airplanes to freighters for cargo, and could later convert some 747s to cargo planes, according to the Journal.

Boeing hopes to boost its aviation-services business, expanded two years ago, the story said. Transport Topics

U.S. Economy: Prices Jump; Sales Strong

The consumer sector represents about two-thirds of the economy, so retail sales are a key to gauging the economy's momentum that is so important to truckers' freight shipments. Bridge News said economists had looked for just a 0.6% rise in sales.

But while analysts had thought the producer price index would rise by a solid 0.5% partly on energy costs, the 0.9% gain will stir fears that inflation may be getting ready to break out and prompt the Federal Reserve to push interest rates higher. Even the non-food, non-oil core PPI rise of 0.3% topped expectations, Bridge said. Transport Topics

Mideast, Oil Woes Hit Global Stocks

Tokyo's Nikkei Stock Average, a key benchmark, fell 220 points or 1.42% by its close although it had lost twice that much after it first opened, news wires said. In Taiwan, authorities intervened to buy shares after stocks lost 5.5% on the Taipei exchange; it reversed to gain 1.2% on the close, the Associated Press said. Hong Kong's market closed 2.6% lower, after worse losses earlier.

A similar pattern hit European markets. They opened with lighter losses but soon came off lows. Europe was still trading, but CNNfn noted that a key Paris index was down about 1% and a London gauge down about 0.6%. Transport Topics

CargoLifter Commits to North Carolina Sites

The main facility will be an airship assembly and maintenance center in Craven and Jones counties, the company said. North Carolina was selected due to high potential for heavy-lift freight in North and South America; CargoLifter also has headquarters in Raleigh, N.C.

CargoLifter's Craven-Jones county facility will make freight-carrying, lighter-than-air dirigibles, the company said. Transport Topics

Canacar Wants to Revoke M.S. Carriers' Mexico Permits

The group took out an ad in Mexican newspapers, threatening a nationwide strike if M.S. Carriers affliliate Transportes EASO does not cease operations in Mexico, the story said.

Canacar claims that EASO violates the North American Free Trade Agreement by doing business that is supposed to be reserved for Mexican companies. Eighty-five percent of EASO's freight is domestic, and as it is held by M.S. Carriers, Canacar says this violates the neutral investment clause of Nafta which reserves domestic point-to-point trucking to Mexican haulers, the Journal said. Transport Topics

Cummins May Restructure After Poor 3Q

The diesel engine maker said it will take steps to improve profitability in the face of a declining North American truck market, which has severely hampered profits, the story said. While the company did not specify the options it is considering, one Wall Street analyst said Cummins could form a partnership with another company to boost earnings, Reuters said. Transport Topics

Next SPR Bid Round Amount Uncertain

The newspaper said the failure of one of three small bidders, from the first-round SPR awards, to win financial backing to handle three million barrels of crude oil would delay some of the hoped-for impact in curbing heating-oil prices. Since heating oil and diesel fuel for trucks is nearly identical, what affects the price outlook for one fuel type affects the other.

As previously reported, among the 11 original wining bidders for SPR oil, Euell Energy Resources was disqualified Thuirsday when it failed to meet a government deadline to show a bank letter of credit backing up its oil-trading plan. The Journal said two other small bidders won deadline extensions to midnight Friday after showing they were in "serious negotiations" for the financial backing.

The Energy Department said it should announce on Monday how much oil will be put out for another round of bidding. The initial round was for 30 million barrels, and if any other original bidders failed to meet requirements their shares would be included.

However, the story said nothing about whether the government might boost the total in light of new oil-price surges on Mideast tensions. Last month before it announced the SPR release, reports said the Clinton administration had considered a plan for releases of up to 60 million barrels. Transport Topics

Simpson's Earnings Fall on Weak Truck Market

Net income fell to $1.19 million or 7 cents per share, from $2.85 million or 16 cents in the same period of 1999, short of the average analysts' estimate of 10 cents from First Call/Thomson Financial, the report said. Simpson had warned in September that declines in the heavy truck market, along with the weaker euro and higher product costs, would cut into earnings, Bloomberg noted.

The company agreed in September to be bought by a group led by David Stockman's Heartland Industrial Partners LP for about $350 million, according to Bloomberg. Transport Topics

Headlines From Yesterday's P.M. Briefing

• Middle East Violence Won't Disrupt Oil Supply
• Transport Funding/Hours Bill Now in Clinton's Hands
• Euell Forfeits Its Share of SPR Oil
• LA County Workers End Strike at Cardinal's Behest
• Rail Intermodal Traffic Still on Record Pace
• Pokemon Loses Power; Hasbro Will Close Plants
• U.S. Non-oil Import Prices Fall

form method="post" action="http://www.truckline.com/scripts/submany.pl">

Get the latest trucking news sent directly to you! Subscribe to our daily e-mail newsletter! Full Name: E-mail Address: