News Briefs - Nov. 5
The Latest Headlines:
- ISM's Index of Service Sector Approaches Record High
- N.M. Transportation Package to Raise Trucking Costs
- Maine Bridge Increases Weight Limit
- EU Plans Slow Increase of Tariffs on U.S. Imports
- Study: Ambassador Bridge Close to Vehicle Capacity
- Group Touts Benefits of Road-User Pricing
- N.M. Transportation Package to Raise Trucking Costs
ISM's Index of Service Sector Approaches Record High
The Institute for Supply Management said Wednesday its non-manufacturing index rose to 64.7 in October from 63.3 in September.Since April the gauge has exceeded 50, indicating more companies reported business growing than shrinking. The index reached a record high of 65.1 in July.
The index measures the services sector, which is the largest segment of the economy and includes trucking. Economists had forecast the index would hold at 63.3, Bloomberg said.
N.M. Transportation Package to Raise Trucking Costs
The New Mexico Senate approved a $1.6 billion transportation package on Wednesday that would increase taxes on diesel fuel by 3 cents per gallon, raise motor vehicle registration fees by 33% and increase the weight-distance tax paid by trucks by 38%, the Associated Press reported.The Senate also added provisions to limit fee increases on some extra heavy trucks and require the state to process within 24 hours overweight permits for truck drivers, the Santa Fe New Mexican reported.
The House, which already passed the package, will have to accept the handful of amendments the Senate voted onto the bill before it can be sent to Gov. Bill Richardson.
Opponents said the increases would hurt in-state trucking operations, but supporters said it had been many years since registration and trucking fees had been increased, and that New Mexico could continue to rank low compared to most neighboring states, according to AP. Transport Topics
Maine Bridge Increases Weight Limit
About 100 heavy-duty trucks that had been banned from the Waldo-Hancock Bridge in Verona, Maine, have crossed it each day since the Maine Department of Transportation increased its weight limit to 40 tons from 12 tons last Thursday.The state's Department of Transportation closed the U.S. 1 bridge across the Penobscot River to trucks and buses weighing more than 24,000 pounds after discovering extensive deterioration to its two main cables in July.
With the weight limit reduced, trucks and buses were forced to make a 40-mile detour.
The decision to reopen the suspension bridge was made after the installation of 16 new supporting cables and an independent engineering evaluation, AP said. Transport Topics
EU Plans Slow Increase of Tariffs on U.S. Imports
The European Union on Wednesday proposed a slow approach in levying tariffs on U.S. goods if the United States maintains an illegal tax break, the Associated Press reported.In August 2002, the World Trade Organization authorized the EU to impose up to $4 billion in retaliatory tariffs for an illegal U.S. tax break called Foreign Sales Corporation that benefited exporters such as Caterpillar Inc., AP said.
However, the recommendation adopted by the European Commission starts tariffs at only $334 million next year.
The commission plan, which goes to EU governments for their approval on Friday, calls for imposing tariffs of only 5% on the $4 billion worth of U.S. exports to Europe. This rate would then rise by one percentage point a month to a maximum of 17% by March 2005.
Both U.S. House and Senate committees have passed legislation that would replace the illegal export subsidy with a different type of tax break, but the two bills remain far apart in the approaches they would take, AP said. Transport Topics
Study: Ambassador Bridge Close to Vehicle Capacity
The Detroit River Tunnel Partnership said Tuesday a study found the Ambassador Bridge is closer to maximum vehicle capacity than previously believed.The Ambassador Bridge has about 10 million vehicle crossings every year and handles about 25% of all trade traffic between the United States and Canada.
The study, released by economists at the Booker Washington Business Association, said congestion at this crossing usually delays truckers at least an hour, and the problem will grow worse in coming years.
By 2010, the cost of slowed deliveries to shippers is projected to reach about $250 million, according to the study.
"The current estimated capacity of the bridge system for trucks traveling from the U.S. to Canada is 395 trucks per hour (for trucks traveling from Canada to U.S. it is 315 trucks per hour) and this number will not increase without building a new crossing," said Dr. Michael Belzer, lead author of the study. Transport Topics
Group Touts Benefits of Road-User Pricing
Pricing road use in the same way as utilities and food is a possible remedy to traffic congestion, consulting firm Deloitte said in a new study released Tuesday."Road pricing has the potential to provide tremendous economic, time-saving and safety benefits for road users whether they are commercial drivers who conduct business or commuters who travel to work," said Greg Pellegrino, global consulting leader of Deloitte's public sector practice.
In February, a road-pricing project was launched in London, with vehicles electronically charged a flat fee between the hours of 7 a.m. and 6:30 p.m. during weekdays.
After eight months, traffic speeds increased 37%, congestion has dropped 40% during charging hours and round-trip journey times have reduced 13%, the study said.
Deloitte said several U.S. cities are considering user similar programs, and Congress could offer incentives to introduce electronic road pricing to reduce traffic congestion. Transport Topics
