P.M. Executive Briefing - Aug. 31
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Big U.S. Factory Orders Fall Fits with Economic Slowdown Ideas
Economists had predicted a big 6.1% drop in July U.S. factory orders to be reported by the Commerce Dept., Reuters said, after an earlier report had showed a large drop just for the durable goods segment. But Commerce on Thursday said overall factory orders last month fell by an even sharper 7.5%.That is the largest drop on record, and underscores ideas that some big parts of the economy are slowing. Wire services also reported that Chicago-area purchasing managers during August showed the first contraction in their gauge of manufacturing activity since January 1999. And the Chicago Tribune quoted economists saying high fuel prices could shock the economy out of its soft-landing glide path into something harsher.
All this reinforced notions that the Federal Reserve will not hike interest rates any time soon, perhaps for months to come, and stock prices staged a broad rally Thursday. But a slowdown in the goods-producing sector means less growth in shipment volume for truckers, while fuel prices keep pushing truck operating costs upward. Transport Topics
Deere Invests in Truck Technology Supplier XATA
Deere & Co. subsidiary John Deere Special Technologies Group has agreed to an equity investment in XATA Corp., the company said Thursday. XATA makes onboard technology for the trucking industry, and said its onboard systems are used by more than 450 fleets.Deere will invest $3.1 million to acquire 14.8% ownership of XATA, figuring that the investment will allow the Deere technologies unit to expand its offerings to current customers as well as move into new markets. Transport Topics
EU Will Approve Volvo Purchase Of Renault Truck Division, Source Says
The European Commission will approve Volvo's purchase of the truck division of Renault, an unnamed European Union source told the Swedish wire service Direkt Thursday. Bloomberg carried the Direkt report in the the United States.The concessions Volvo has offered are deemed sufficient to solve any competition problems and the ruling should be made public Friday or Monday, Direkt reported.
By acquiring the Renault truck unit, Volvo stands to become the No. 2 truck maker worldwide and will double its U.S. market share to 24%, the article said. Transport Topics
Intermodal Traffic Still On Record Pace, AAR Reports
Rail intermodal traffic continued to rise last week and is still on a record pace, the Association of American Railroads reported Thursday. That is good news for the trucking companies that haul those containers and trailers on part of their journeys. Growth in container traffic continues to more than offset the decline in trailers on railcars.Intermodal traffic totaled 189,223 trailers and containers last week, a 3.3% increase from the comparable week in 1999, AAR reported. Separately, trailers totaled 57,029, a 14.9% drop, while containers rose 13.7% to 132,194.
Railroads reporting to AAR account for 98% of the country's rail intermodal volume. Transport Topics
U.S. Agency Issues Latest Vehicle Recall List
The U.S. National Highway Traffic Safety Administration issued its monthly recall report this week, with several heavy trucks on the list.
It said that on 1,848 Hino Diesel 1999-2001 trucks, with anti-lock brake systems (ABS) and air over hydraulic brake actuation, the ABS computer unit may be faulty and could increase braking distances beyond normal lengths.
A large number of International buses and trucks - several vehicle categories for 1998-2000, including the 9000 Series of heavy trucks - equipped with Bendix AIR ABS have also been recalled. The ABS sensor wires may chafe and cause a false signal to be sent to the electronic control unit, the recall listing said, leading it to incorrectly dump air at one or more wheels, which can increase stopping distance. An International spokesman said he had no breakdown yet as to how many of the 104,302 vehicles recalled are heavy truck models.
On 154 Peterbilt-387 vehicles from 1999-2000, NHTSA reported that the side fairing hinge bar and mounts can separate from the fuel tank straps, and the hinge bar can rotate and separate from the fairing, causing the hinge bar assembly to fall off the truck. Transport Topics
Canadian Trucking School Tests Students in Thickest Traffic
The North Shore Driving School in Vancouver, B.C., gives its trucking students the toughest test of all: rush-hour traffic.The Vancouver Sun reported Thursday that it is not a rare occurrence to see a North Shore Driving School truck with long lines of cars behind it, as a student gets a taste of driving the big rig through rush hour.
One of the school's instructors told the Sun that rush hour is part of the curriculum along with basics such as how air brakes work and how to shift gears because drivers face all times of day and conditions on the roadways. The inconvenience to car drivers during the lesson could mean lives saved later on, he concluded. Transport Topics
Headlines From Today's A.M. Briefing
- Bridgestone/Firestone Workers May Strike This Weekend
- Canadian Air Parcel Giant Purolator Cites Tentative Deal with Teamsters
- Online Shipping Quotes Available from Craters & Freighters
- XTRA Intermodal to Offer Online Equipment Info
- DOT Shuts Down Indiana Trucking Firm for Alleged Safety Violations
- Brooklyn Rail Yard Rebuilt; Now Needs Operator
- DOT's Slater Meets with Arkansas Trucking Leaders
- FedEx To Build New Technology Center To Boost E-Commerce
