Executive Briefing - March 21

Goodyear 2001 Truck Tire Sales Down Sharply

Court Rejects Emery on USPS-FedEx Deal

FedEx Earnings Fall; Uncertain on Future

DHL Asks DOT to Dismiss UPS/FedEx Complaint

Procter & Gamble May Cut Jobs

If so, that would be another hit to the outlook for U.S. freight shipments to improve, and the latest in a series of major layoffs and production cutbacks by all sorts of manufacturers.

Besides the direct effect that can have in curbing shipments at the companies involved, such cuts can ripple through to hurt other producers as the people who are laid off reduce their own purchases.

The company did not comment on speculation of these new job cuts, the Associated Press said. In early 1999, P&G had unveiled a plan to cut 15,000 jobs through attrition or early retirement, but the Journal said fewer people than expected actually left. Transport Topics

Water Hauling Allowances Raised in Vt.

National Tank Truck Carriers President Clifford J. Harvison told Transport Topics that while it is not unusual for states to adjust or amend laws for their important industries, it is unique for a judge to make such a decision rather than stand by the legislature.

In this case, however, Judge Edward Cashman ruled the law limiting water trucks to 90,000 pounds while allowing milk trucks to carry 99,000 pounds was unconstitutional.

Water haulers had argued it was dangerous for them to keep trucks at the 90,000-pound weight because it means leaving air space within the tanker. This results in the sloshing of water, which makes it harder for the trucks to stop.

Meanwhile, state officials said the higher weight allowance will mean more stress on state roads. Transport Topics

Calif. Blackout Hit Long Beach Port

Three terminals including the International Transportation Service, the California United and Zim-American Israeli Shipping Co. experienced power failure for one to two hours on Monday, JOC reported. The ITS terminal suffered only minor interruptions since it used a supplemental power system.

The Long Beach port is the largest in the United States, and is adjacent to the second-largest port at Los Angeles. The Long Beach-LA complex of terminals handles the lion’s share of the huge intermodal container business in Asian imports and serves the Latin America trade as well.

It is also one of the key U.S. rail-truck centers for both regional and long-distance loads. So anything that hampers operations at those terminals can affect freight moves throughout the country. Transport Topics

Canadian Tax Plan Would Encourage Rail Use

Paul Tellier said his plan would lower rail freight rates for shippers while increasing rail freight volumes, reducing the cost of road construction and easing traffic on highways.

Tellier estimated his plan would result in the diversion of 100 million tons of freight from highway to rail, the equivalent of three million truckloads.

At the same time, he said, it would save the government millions of dollars per year in road repairs. Transport Topics

OPEC May Cut Production Again

OPEC decided last weekend to cut oil production by 1 million barrels per day, in order to keep prices above $25 per barrel.

Meanwhile, crude oil prices rose only slightly Wednesday, as traders doubted that the Federal Reserve's decision Tuesday to cut interest rates by a half-percentage point would reverse the slowing economy.

In London, Brent crude oil increased 10 cents to $24.72 per barrel. In New York, sweet light crude oil for May delivery went up 12 cents to $26.24 per barrel. Transport Topics

Road Work: Oregon Reopens Bridge; Columbus Tickets Trucks

The southbound lanes are scheduled to reopen no later than March 26. The bridge is located on Interstate 5, two miles north of Canyonville.

In Columbus, Ohio, police have been aggressively enforcing a ban of all vehicles over seven feet wide from a prohibited section of I-70 because of road repairs.

The work zone runs between Third Street in downtown Columbus and James Road. Vehicles are being detoured onto the Columbus Outerbelt. Transport Topics

Mayflower Lands Volvo NA Truck Cab Deal

ATA: Mexican Trucks on U.S. Roads Would Help Both Countries

In remarks that will be aired later, McCormick emphasized that Mexican trucks would not be allowed to drive on U.S. highways until they comply with U.S. safety regulations.

The U.S. Department of Transportation has said that it would be at least eight months before the United States opens its doors to Mexican trucking, Transport Topics reported this week. Transport Topics

Missouri Gov. Seeks to Ease Truck Regulations

The plan calls for four state departments - Transportation, Revenue, Economic Development and Natural Resources - to develop a common registration process for truckers and design an application that is accessible by the Internet.

The article noted that the order comes at the same time lawmakers are considering the governor's transportation plan involving the higher taxes. Transport Topics