P.M. Executive Briefing - Jan. 8
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Calif. Energy Crunch Leading to Production Cutbacks
Manufacturers and farmers are cutting production in California because of the energy crunch in that state, the Wall Street Journal reported Monday.Less production means fewer loads for trucks to haul. In 1999, California produced more than 12% of the total U.S. gross domestic product.
Shutdowns are predicted in the textile industry as natural gas prices have jumped fivefold in recent weeks, according to the Journal.
Chrysler to Cut 1Q Production by 26%
General Motors Corp. (GM) and Chrysler will cut first-quarter vehicle production, wire services Reuters reported.Fewer loads of parts and finished vehicles for trucking companies to haul - especially in the Midwest - is the likely outcome of the automakers' cutbacks.
Chrysler said it would make 678,000 cars and trucks at its plants, a 26% lower than first-quarter 2000 production, Reuters reported. GM's 21% cutback is 7% below its earlier estimate for the first quarter, according to AP.
In December, GM had a 98-day supply of vehicles in its inventory, considerably more than the industry standard of 60 days, AP reported.
Last week, GM announced a series of January one-week shutdowns at 11 plants. Transport Topics
TCA Joins OOIDA to Push Fuel Surcharge Bill
The Truckload Carriers Association has joined the Owner-Operator Independent Drivers Association's push to legislate a national fuel surcharge for all truckers, Newport's Truckinginfo.com reported Monday.The latest version of the bill would have a surcharge kick in when prices exceed a benchmark price of $1.15 per gallon. Whatever funds are collected for the surcharge would also have to be passed on to the buyer of the fuel.
The new bill would also use any "commercially reasonable" source to calculate mileage traveled - such as the Household Goods Mileage Guide - not just the Military Traffic Management Command's table allowed for in a previous bill. Transport Topics
U.S. Average Diesel Price Drops Slightly
The national average price for diesel fell 0.2 cents from last week, the U.S. Department of Energy reported Monday. As of Jan. 8, the average price of diesel was $1.520 per gallon, compared with 1.522 as of Jan. 1.The Gulf Coast region had the lowest diesel average at $1.437 per gallon. The highest price was in California, as usual, where a gallon of diesel on Monday cost an average of $1.710. (Click here for more fuel prices.) Transport Topics
International Transit Changes Name to Florida Express Carriers
Trucking company International Transit Inc. said Monday that it has changed its name to Florida Express Carriers Inc. to reflect the market it serves.Florida Express provides truckload services and an intermodal connection to the FEC Railway in Jacksonville, Fla. The company recently moved from Cincinnati to better access customers in the U.S. Southeast.
The company is a wholly-owned subsidiary of Florida East Coast Industries Inc., (FLA) which is based in St. Augustine, Fla. Transport Topics
Pa. to Renumber State Highway Exits
The Pennsylvania Department of Transportation announced Monday that it will begin renumbering its state highway exits this spring.Under the new system, an exit will be numbered according to the number of miles it is from the state's borders rather than the current sequential system. The numbers will begin at the western and southern borders and ascend as a driver goes north or east
o avoid confusion, the old exit numbers will appear along with the new exit numbers for two years.
The $3 million project will renumber 380 interchanges along 1,250 miles of highway. Many other states have also converted to the mileage system in recent years. Transport Topics
Headlines From Today's A.M. Briefing
- U.S. Xpress Warns of 4Q Loss
- Parts-Maker Delphi to Cut 300 Workers, Idle 1,280 Others
- APL Logistics to Buy GATX Logistics
- Volvo, DaimlerChrysler At Odds Over Mitsubishi
- Ford, Bridgestone Settle SUV Rollover Lawsuit
- World Events Swing Crude Oil Prices
- U.S. Air Cargo Volume Up 2.6% in November
- National Gasoline Average Down to $1.49/Gallon
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