P.M. Executive Briefing - Nov. 17
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Crude Oil Prices Drop Further on Warm Weather Forecast
Crude and heating oil futures continued to drop Friday based on weather forecasts of warmer weather next week for the U.S. East Coast, Bloomberg reported.Crude oil decreased 2% or 72 cents to $34.42 per barrel. Heating oil for December went down 2.1 cents to $1.033 per gallon, the wire service reported.
There was recently a concern that a colder-than-normal winter in the U.S. Northeast - the nation's biggest heating oil market - would increase demand while supplies were expected to be 31% below last year's winter supply. Such a tight market could lead to diesel price increases like those experienced in the region last winter.
Summit Rejects Teamsters Offer, Strike Drags On
The Teamsters strike against Summit Logistics, which operates a Safeway grocery warehouse in Tracy, Calif. may drag on into the Thanksgiving holiday, local news reports indicate.Summit rejected a settlement offer by union officials, the Scripps-McClatchy Western Service reported Thursday. In that rejected proposal, Local 439 sought, among other things:
- Pay by the hour instead of mile for drivers on routes within a 75-mile radius
- A rest break for warehouse workers between the end of a regular 10-hour shift and the beginning of a mandatory overtime shift
- A change in the random audit program the company uses to monitor warehouse worker performance - workers say they can be fired for not being 100% accurate in placing the proper products on a pallet
- Pallets consistent in size, holding 65 cubic feet of goods
- Amnesty for anyone involved in violence on the picket line.
Safeway said Thursday it had hired back 300 store employees that it laid off when the strike disrupted supply. Transport Topics
Rail Intermodal Traffic Falls Slightly
Intermodal freight volume at major U.S. railroads reported a slight drop of 0.2% to 187,229 trailers and containers last week, compared to 187,602 during the same week in 1999, the Association of American Railroads reported Thursday.In separate categories, trailers showed a drop of 12.5% to 59,484, while containers jumped 6.8% to 127,745, the report said.
Railroads reporting to AAR account for 98% of U.S. rail intermodal volume. Transport Topics
Cummins, Westport Get Funding for Natural Gas Truck Engine
Cummins Inc. (CUM) and Westport Innovations have been awarded funding for a natural gas engine project for heavy-duty trucks, the companies announced Friday.
The goal of the two-year project is to develop technology that could enable a natural gas-powered 400-horsepower heavy-duty truck engine to achieve emissions far below the 2002 U.S. and California re-quirement for oxides of nitrogen (NOx).
The funding, totaling $1 million, will be provided by the National Renewable Energy Laboratory, the South Coast Air Quality Management District and the California Energy Commission.
Cummins will be the project manager while Westport will perform most of the development work. The Cummins-Westport project will use Westport's high-pressure, direct injection natural gas technology, combined with exhaust gas recirculation technology.
Toronto-based Westport develops alternate-fuel systems for diesel engines. Columbus, Ind.-based Cummins is a major manufacturer of diesel engines for trucks and other heavy equipment. Transport Topics
Volvo Sales Slide in North America, Rising Overseas
Volvo (VOLVY) truck sales are slowing in North America but picking up in other parts of the world, the company announced Friday.The company's overall deliveries decreased by 6% up to the end of October. The Swedish truck-maker said the slumping North American heavy-truck market was the main culprit, where deliveries shrank by 32%. When North America was excluded, Volvo deliveries increased by 13%.
Asian demand remained strong, posting an 11% increase. South American sales rose 17% but were concentrated in Brazil and Chile, the company said. Other markets in that region continued to display low demand. Transport Topics
California Gets Strict with Truckers on I-5
This week, California's Highway Patrol started cracking down on truckers along Interstate 5, the Associated Press reported.A recent series of fatal accidents involving big rigs prompted the department to perform the surprise inspections north of Sacramento, the story said.
Several truckers were cited for violations ranging from not wearing a seat belt to exceeding federal hours-of-service limitations. Transport Topics
NY: Better Road Conditions, Lower Emissions Ahead
Truckers may find better driving conditions in the New York City area, but will face lower emissions standards statewide.The Port Authority of New York and New Jersey plans to spend $1.8 billion for truck and rail improvements over the next five years, along with $1.6 billion for river crossings, the New York Times reported Friday.
It plans to pay for these by raising long-dormant rates for Hudson River tolls as well as boosting commuter train and bus fares, the paper said. Trucks would get steep discounts for traveling at night (see NY/NJ Eyes Bridge Incentive for Trucks).
Separately, the New York State Environmental Board adopted the California low-emission vehicle standards known as LEVII. They require reduced tailpipe and evaporative emissions of hydrocarbons and nitrogen oxides from light- and medium-duty trucks, as well as cars and sport utility vehicles, beginning with model year 2004. The regulations are available at www.dec.state.ny.us. Transport Topics
Headlines From Today's A.M. Briefing
- DaimlerChrysler Names Zetsche to Head U.S. Operations
- C.R. England Sets Reefer Surcharge
- 4th Q Profitable for Trailmobile Canada
- Veredex Hires CF’s Former CEO
- GM Van, Medium-Duty Truck Plants Get Long Holiday
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