A.M. Executive Briefing - Sept. 13
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Clinton Monitoring Oil Prices; Options Include Reserve Tap
President Bill Clinton said he is monitoring oil prices following OPEC's announcement of a production increase, and is considering options to avoid high fuel and heating oil costs this winter, Reuters reported Tuesday.Should the OPEC increase not be sufficient, Clinton is considering releasing oil from the U.S. Strategic Petroleum Reserve if it becomes necessary to lower prices and meet demands, the article said.
That move was encouraged by American Trucking Associations President Walter B. McCormick Jr. in a recent letter to President Clinton, Transport Topics previously reported.
A two-million-barrel emergency heating oil stockpile is being created to aid the Northeast in the upcoming winter season, the article said.
Oil prices are still high - around $34 per barrel on the New York Mercantile Exchange - as traders speculate the OPEC output hike will not be enough to lower prices to acceptable levels, nor to meet fuel or heating oil demands in winter months, Reuters noted. Transport Topics
British Truckers Protest on Blair's Doorstep; Gas Stations Run Dry
British truck drivers, angry over high fuel taxes, staged a protest on the doorstep of Prime Minister Tony Blair, causing major traffic jams in London, Reuters reported Wednesday. Thanks to the ongoing oil refinery blockade, some British fuel stations closed for lack of fuel, the New York Times also reported. Fuel tank trucks have begun deliveries, but the protests continue, various agencies report.Many European countries are facing fuel shortages as angry truckers, farmers and other affected by high fuel prices and taxes staged their own protests, the Reuters report said. Blockades continue in Germany and Belgium, while similar action may occur in Ireland and Spain soon, the article said.
The British truckers in London jammed up many of that city's streets, and police are allowing demonstrators to protest on foot at Parliament, Reuters reported.
Elsewhere in Britain, ambulance and fire companies, diesel trains and mail trucks had to cut back service or stopped altogether, the New York Times report said. Motorists looking to purchase gasoline face waits of several hours, while many said they would have to stay home from work Wednesday because they were out of gas, the Times said. Transport Topics
U.S. Import Prices Rise 0.2%, Less Than Predicted
Economists and financial markets had thought the U.S. Labor Department would say Wednesday that import prices had risen 0.4% in July, Bloomberg reported, but Labor said there was only a 0.2% rise in the overall cost of imports and a scant 0.1% gain when oil was not counted.That is further good news on the inflation front, and its implication for holding U.S. interest rates down. Since it comes at a time when rising oil prices are pressing the economy, the report also shows that outside of energy there is little inflation risk. Transport Topics
Wall Street Concerned About DaimlerChrysler in Third Quarter
Investors are expressing concerns that DaimlerChrysler's third-quarter results may be even worse than the company warned in July, the Wall Street Journal reported Wednesday.DaimlerChrysler holds several truck-making companies, including Freightliner, and is currently in the process of purchasing Detroit Diesel, a diesel-engine manufacturer. The weak North American truck market may be partly to blame for the vehicle-making giant's woes.
A Deutsche Bank analyst predicted Tuesday that DaimlerChrysler's United States division will see about a $320 million operating loss for the third quarter, the Journal reported. DaimlerChrysler shares were at $49.19 on the New York Stock Exchange Tuesday after trading as high as $78.6875 in January, the article said.
DaimlerChrysler recently announced that James D. Donlon, noted for his cost-cutting skills, is returning to the Chrysler half of the company as controller - a move some say means DaimlerChrysler recognizes its U.S. side needs to cut back on costs, according to the report. Transport Topics
Atlas Air Steps Up Talks With Pilots
Atlas Air, the world's largest freighter operator, prepares to enter intensified contract negotiations with the Air Line Pilots Association, the union representing its pilots, the Journal of Commerce Online reported Tuesday.ALPA's request for a federal mediator was granted by the National Mediation Board, the article said. ALPA, which represents all of Atlas' approximately 850 pilots, has expressed concern over the establishment of subsidiary Atlas Air Crew Services and the opening of a base in England, two moves which the union feels constitute outsourcing of jobs to foreign pilots, according to the article. Transport Topics
InformationWeek Names Top Firms for IT Innovation
InformationWeek has named its top 500 most-innovative users of information technology for 2000, in a listing that includes a raft of companies in logistics and transportation.
Companies were chosen for what the publciation deemed new and innovative usage of the Internet, from online order tracking to customer service. Roadway Express, for example, was cited for its extranet, My.roadway.com, through which customers can check invoices and payment history, access shipping rates, and obtain proof of delivery and other shipping documents. J.B. Hunt's use of wireless technology to maintain contact with drivers and track freight moves for customers was also lauded by the magazine.
Companies from the logistics and transportation industry named to the top 500 include: 19. Avis Group Holdings
25. Continental Airlines
39. FedEx Corp.
44. Delta Air Lines
45. United Parcel Service
56. CNF Transportation
67. Schneider National
85. DHL Airways
96. Northwest Airlines
98. Roadway Express
108. USFreightways
115. United Airlines
116. AMR Corp.
123. Bekins Van Lines
153. Danzas AEI Intercontinental
173. Ryder Systems
198. CSX Corp.
208. Landstar System
221. Enterprise Rent-A-Car
262. Burlington Northern Santa Fe Railway
306. J.B. Hunt
309. Budget Rental Car Group
349. Fritz Companies
356. Yellow Technologies
358. Alaska Airlines
378. Penske Truck Leasing
391. Union Pacific
452. APL Ltd.. Airborne Express
i>Transport Topics
TRISM Subsidiary Awarded 5-Year Energy Dept. Contract
TRISM Inc. announced this week its subsidiary Tri-State Motor Transit (TSMT), a hazardous and radioactive material hauling specialist, was awarded a five-year contract from the U.S. Department of Energy to haul radioactive waste.Terms of the contract include $10.2 million in guaranteed value and up to $29 million in potential pay, TRISM said.
Under it, TSMT will transport radioactive waste generated by DOE sites nationwide to the Carlsbad, N.M., Waste Isolation Pilot Plant.
TSMT was awarded the contract after five cmopanies sudmitting bids were evaluated on several criteria, including safety, past performance and financial stability. The carrier said it has been rated "Excellent" by the DOE Motor Carrier Evaluation Program. Transport Topics
Forward Air's Logtech, United Cargo Call Off Tech Talks
Forward Air Corp. said Wednesday its technology subsidiary, LogTech Corp., is no longer pursuing an agreement with United Cargo, a United Airlines subsidiary.LogTech and United Cargo were in talks to work out a deal under which LogTech - a technology service provider to the transportation and logistics markets - would provide Internet-based technology service to United Cargo, the announcement said.
Forward Air offers time-definite surface transportation of deferred air freight through 73 facilities at or near major U.S. and Canadian airports. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Times Says Ford Knew of Ignition Defect; Slater Seeks Broader Safety Authority
- New Jersey Turnpike Will Increase Tolls, Use E-Zpass
- Firestone Nixes Further Recall, But May Replace More Tires
- France's La Poste Turns to FedEx to Challenge European Rivals
- Clinton Vow to Fill Heating Oil Reserve Curbs Price
- International Air Cargo Up, Domestic Down in July
- Transportal Reaches North of U.S.-Canada Border to Big Freight Systems
- Earthgrains Workers Now Striking at 22 U.S. Bakeries
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