P.M. Executive Briefing - Feb. 25
This Afternoon's Headlines:
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Gulf Arab States Leaning Toward Oil Production Increase
According to officials, oil ministers from the Gulf Arab states supported raising daily oil production to 2.5 million barrels, from 2 million, aiming to drive prices per barrel down to $20 to $25 from the current level near $30.Reportedly, Saudi Arabian officials also want prices per barrel between $20 and $25; Energy Secretary Bill Richardson is to discuss production increases with Kuwaiti and Saudi officials this week. Heavy Duty Trucking Online (02/25/00)
Study Shows Trucking Helps Drive Canadian Economy
A study conducted by Transport Canada showed that Canada's trucking industry has significantly contributed to the country's robust economy. In the past 20 years, the tonnage handled by Canadian carriers has more than doubled, and the study suggests the growth in Nafta imports and exports handled by truck will continue.Canadian trucking firms are expected to haul 23 million tons of export goods and 274 million tons of import goods by 2005, up from 9.5 million tons and 174 million tons, respectively, in 1990. The three sectors of the Canadian economy probably helped by the most by the trucking industry are lumber mills, food producers, and the oil and gas industry.
However, the Canadian Trucking Alliance's spokesperson Massimo Bergamini warned the study's projections could be overly optimistic if rising fuel costs foreshadow high inflation rates. Edmonton Sun (02/24/00) P. TS5; Sandor, Steven
Auto Parts Go Direct: Truck Parts Are Next
Although manufacturers are being prodded to go on the Internet and sell their wares "direct," it is dealers and distributors that are making the initial strides in that direction for the replacement-parts industry, writes editor Andrew Ryder.The North Carolina retail automotive group Flow Cos. started up gmpartsdirect.com, which offers General Motors parts delivered the next day while charging only the General Motors Parts catalog's dealer cost. Flow plans to give dealerships and repair centers network computers for direct access to the service.
Although the site presently offers parts for GM commercial vehicles up to Class 4, it makes sense for parts for large trucks to be next, Ryder writes; he predicts that some aggressive dealers will put together such a system for other manufacturers in the future. TruckingInfo.com (02/25/00); Ryder, Andrew
Current Accident Definition Comes Under Fire
The Alberta Trucking Association and other Canadian trucking groups want the National Safety Code, which covers the trucking industry in Canada, to give a standard national definition of an accident rather than allowing each province to set a definition.The Alberta trucking group opposes the Alberta Highway Traffic Act definition, in which the minimum reporting limit is C$1,000; Al Smythe, the group's executive director, says the money-based definition is "impractical and unreasonable," pointing out that breaking off a truck's west coast heated mirror would be C$1,000.
The association requested that the province look at the U.S. federal definition saying an accident results in a death or injury requiring treatment elsewhere or results in a disabled vehicle that must be towed away.
Smythe and the Canadian Conference of Motor Transport Administrators are also putting together a definition that would work at the national level, working via the Canadian Trucking Alliance to get federal approval. Edmonton Sun (02/24/00) P. TS4; Mather, John
Truck Dealer Sees Rough Road Ahead
New dealership acquisitions pushed truck dealer Rush Enterprises' net profit for the fourth quarter to $4.8 million (66 cents a share), up 24% from the year-earlier quarter, with revenues rising to $226.3 million from $167.2 million.But as Rush forecast a downturn in truck sales, Kercheville & Co. analyst Jeff Dabbs said he would lower his Rush earnings projections for 2000 up to $1 per share; the earlier analysts' estimate was $2.41. Dabbs says he did not expect the company's strategy of building up construction equipment sales, parts sales, and other businesses would "completely offset a downturn" because Rush's new-truck sales business is too large.
For 1999, net profit rose to $16.2 million ($2.34 a share) from $10.8 million ($1.62 a share) in 1998, as revenues rose to $808.4 million from $612.8 million. San Antonio Express-News (02/24/00) P. 2E; Nowlin, Sanford
RSPA Works on MC306/DOT406 Wetlines Rule
The Transportation Department's Research and Special Programs Administration has reportedly proposed banning wetlines, which RSPA and the National Transportation Safety Board estimate constitute $3 million per year in risk avoidance due to fatalities, injuries, and property damage.But the adminstration's solutions – including an on-board pumping/purging system that would shift cargo into a main tank compartment and out of the loading pipe, or an added set of short loading lines retaining less cargo – would cost the industry millions and, by driving up tare weights, reduce productivity.
Wetlines carrying poisonous, corrosive, or oxidizer liquids in external piping without substantial guards were banned in 1990, but those carrying gasoline and other flammable liquids were exempted due to costs, lower demonstrable risk, and lack of technology to empty wetlines after loading, RSPA's Phil Olson told the 1999 Cargo Truck Maintenance Seminar.
According to the RSPA, a pumping/purging system for a new vehicle would cost around $2,500, or about $3,500 per vehicle to retrofit the system, while short lines would cost about $1,400 for a new vehicle, or about the price of a new tank if retrofitted.
However, Bill Boyd of Heil Trailer International said the cost estimates are probably too optimistic, and the complete elimination of wetlines for transporting petroleum could be unfeasible. Modern Bulk Transporter (02/00) Vol. 62, No. 8; P. 56
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