P.M. Executive Briefing - Aug. 22
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Diesel Rises 2.4 Cents; Caribbean Refinery In Hurricane's Path
The U.S. Department of Energy reported that the national average price for a gallon of diesel fuel continued climbing, this time by a 2.4-cent clip and reaching $1.471.This rise brings the national average to a 22-week high, according to the American Trucking Associations' weekly publication Fuel Line. Leading the charge among the various regions was California, which saw prices go up by 7.5 cents.
Following concern in recent weeks about low U.S. inventories, the Department of Energy has called for a production rise of 2.7 million barrels a week in distillate stocks to gear up for winter. Fuel Line reported any disruption in production will have a "magnified effect."
Meanwhile, politics continue between OPEC and its consumer nations asking for barrel price reduction. The Associated Press reported Tuesday that the European Union has requested Venezuelan Oil Minister and OPEC President Ali Rodriguez for prices to be lowered from their $32 level to $25. Rodriguez has held firm that no decisions on price reductions or production increases will be made before the cartel meets next month. Transport Topics
Aim Caribbean Opens New Chicago-area Terminal
Midwestern shippers whose freight is bound for the Caribbean will be able to eliminate "time-consuming and expensive stops at intermediate trucking terminals," by using Aim Caribbean Express' new terminal, the company reported Tuesday.The ocean-freight forwarder and distributor opened a receiving terminal in Berwyn, Ill., outside Chicago. Direct rail access and onsite U.S. Customs examinations expedite ship-ping.
Aim will pick up freight within a 200-mile radius of the new terminal. At the terminal, the freight is containerized and shipped directly to Florida's Port of Jacksonville. Transport Topics
DRIVERNet Taps Drivers Association's Insurance Product
DRIVERNet signed on a partnership with insurance products provider the Association of Professional Truck Drivers of America, the Internet-based firm announced Tuesday.The alliance will provide a service for drivers where they can receive insurance quote information from Transportation Association Solutions Inc., APTDA's insurance provider.
APTDA's executive director said the partnership will allow the association to reach a wider audience. Kansas City, Mo.-based DRIVENet has workstations in more than 400 truck-stops and travel centers nationwide.
"We are extremely pleased to have the opportunity to add APTDA's reputation and insurance products to DRIVERNet and DRIVERNet Financial Services," said Tad DeOrio, president of DRIVERNet. "This is an important step for us in providing complete financial services to drivers in the near future." Transport Topics
Manugistics Will Run John Deere Command Center
John Deere has picked Manugistics, a supply chain solution provider, to create an intelligent global transportation network.Manugistics will run a transportation command center at the agricultural and construction equipment maker's Moline, Ill., headquarters. The center will help Deere manage inbound freight movements across multiple modes of transportation.
Deere aims to improve the complex routing of multi-point freight movements and enhance communication with carriers through Web-enabled collaboration. Transport Topics
Truck Slowdown Slows Williams Controls Earnings
A slowdown in the heavy and medium truck markets was at least partly to blame for Williams Controls' second quarter loss of $727,000, the company said.The loss amounted to 4 cents per diluted share. Company officials said earnings were affected by a "general slowdown in the heavy and medium truck business, caused by rising interest rates, higher fuel costs and the high number of used trucks currently on the mar-ket." The company, however, continues to "make inroads" into the non-truck realm, said Thomas W. Itin, chief executive officer.
Williams Controls is a designer, manufacturer and integrator of sensors, controls and com-munications systems for the transportation and communications industries. It is based in Portland, Ore. Transport Topics
Oklahoma Trucking Association Elects New Chairman
The Oklahoma Trucking Association has elected Barry Miller, president of Dallas-Miller Logistics, as its chairman, the Daily Oklahoman reported Tuesday.Dallas-Miller Logistics is the parent company of Frontier Express. The association also recently elected UPS governnment affairs Director Paul Lawrence as its first vice chairman and Teresa Brown, president of the Joe Brown Co. as second vice chairwoman. Transport Topics
Fed Keeps U.S. Interest Rates Steady
As expected, the Federal Reserve on Tuesday afternoon said its policymakers agreed to hold short-term interest rates where they already are.The Fed's statement touched on the main reasons for keeping rates steady – moderation in the pace of overall demand growth, while rapid productivity gains have kept costs down – but said Fed officials remain concerned that the economy has some inflation risks.
Various trucking companies, and their suppliers, have blamed the past year's rise in interest rates as hurting their shipment volumes or ability to buy new equipment.
Many Fed watchers think the central bank will avoid any new rate hikes until at least after the presidential election campaign ends in November, so that its policy does not become politicized. Transport Topics
Trucker Killed As Seven Rigs Pile Up On I-95 In Maryland
A truck driver was killed Tuesday morning in Aberdeen, Md. when his rig slammed into another, causing a chain-reaction with six other tractor-trailers in all that were stopped on Interstate 95, the Associated Press reported.The six trucks were stopped around 4:30 a.m. on the southbound side of the highway about a mile north of exit 85, the AP story said, as a helicopter was landing to airlift a victim of an earlier accident. Police officials told the news service there were no signs of the big rig braking before the subsequent collision.
I-95 was closed for 10 miles, from exit 93 in Perryville to exit 80, backing up traffic for several miles. Cleaning up the several thousand gallons of diesel fuel and removing the damaged vehicles took until about 10:30 a.m. Transport Topics
