P.M. Executive Briefing - Sept. 11
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Mexico Will Consider Oil Output Increase; Prices Keep Rising
Mexico has said it will consider raising its oil output by 200,000 barrels per day to go along with OPEC's production increase, Bloomberg reported Monday. Mexico is not an OPEC member, but has hiked production three times this year along with that group.Andres Antonius, the Mexican undersecretary for energy, said that depending on the market Mexico would increase its oil production sometime in the fourth quarter.
The addition of a Mexican production boost might help soothe the raging market some, as oil prices continue to rise despite OPEC's announcement that it would raise output by 800,000 barrels daily.
Atlanta Airport Seeks FedEx, UPS Help in Cargo Slump
Atlanta's Hartsfield Airport has experienced a 20% decrease in domestic air cargo tonnage in the first half of 2000, and has asked overnight delivery giants FedEx and United Parcel Service for help, the Atlanta Journal-Constitution reported Monday.
Airport officials, eager to make up the $1 billion in lost cargo, asked FedEx and UPS to set up mini-hubs at the airport for domestic cargo. Neither company would give any details regarding talks with Hartsfield officials, though UPS is planning to upgrade its operations there later this year, the newspaper reported.
International air cargo, on the other hand, has risen almost 24% from last year, the article said. An air cargo consultant attributed this to the "dynamic ground transportation system" that makes it more economical for shippers to use trucks rather than planes for shipment within the United States, according to the Journal-Constitution.
However, the disparity is also in line with continuing strength in international trade flows, while domestic manufacturing aimed solely at the U.S. market has slowed some. Transport Topics
LA Bus, Train Operators May Strike, Putting More Cars on Roads
The union representing the Los Angeles Metropolitan Transportation Authority's bus and train operators said its workers will strike early Friday if a new contract agreement is not worked out by then, the Los Angeles Times reports.Should a strike occur, all MTA rail service would be halted and only 100 buses would run, rather than the usual 2,000, a MTA official told the Times. This could have disastrous repercussions on Los Angeles-area highways, which already see a great deal of congestion. Trucks hauling cargo to and from the high-volume dock areas of the Los Angeles and Long Beach ports could face worse delays than usual.
The United Transportation Union is mainly upset about a proposed four-day, 10-hour-a-day workweek for certain drivers, but there are 14 issues altogether to be settled in the talks, the article said. Transport Topics
NHTSA Director Says Agency Needs More Money, Authority
The U.S. National Highway Traffic Safety Administration needs more money and authority, and wants to update obsolete standards, according to Saturday's New York Times. Its new director, Sue Bailey, made the remarks to reporters in a Sept. 8 get-acquainted session.She said NHTSA needs the legal right to demand warranty data and information on recalls from car and tire companies, the Times reported. And the tire standard needs updating as it was written for bias-ply tires, not steel-belted radials, she told the Times.
The paper also quoted a Republican staffer on Capitol Hill saying it would be difficult to argue against more money and authority in light of recent incidents. NHTSA is investigating the role of Bridgestone/Firestone tires more than 80 deaths, many involving sport utility vehicle rollovers. Transport Topics
FTC Okays Internet Vehicle-Parts Exchange
The U.S. Federal Trade Commission on Monday conferred its approval upon business-to-business venture Covisint, an Internet-based vehicle parts exchange created by large auto and truck makers, Bloomberg reported Monday.Online ventures like Covisint "have a great potential to benefit both businesses and consumers through increased productivity and lower prices," Federal Trade Commission Chairman Robert Pitofsky said in a statement.
But Reuters noted that after voting 4-0 for approval, the FTC also cautioned that since the government could not say Covisint would cause no competitive concerns, the agency reserved the right to take further action at some point if it saw a need.
Covisint is a joint venture of General Motors, Ford, DaimlerChrysler, Renault and Nissan, along with two information technology firms Commerce One and Oracle, Reuters said. Transport Topics
Zero-Emissions Rule Upheld by California Board
California's Air Emissions Board voted to uphold a rule that will require 10% of new cars and trucks sold in the state to produce zero emissions within three years, Bloomberg reported Monday.Thanks to that ruling, the six largest automakers in the United States - General Motors, Ford, DaimlerChrysler, Toyota, Honda and Nissan - will have to make a combined 22,000 electric vehicles each year starting with the 2003 model year, the article said.
The automakers had argued that electric vehicles are not appealing to consumers, since they have short driving ranges, limited recharging stations, high prices and slow acceleration. Instead, carmakers have focused on fuel cell technology to meet the zero-emissions standards, Bloomberg noted. Transport Topics
Ryder Selects eCredit.com to Speed Credit Process
Ryder Systems, a global logistics and transportation management solutions provider, an-nounced Monday it will use the eCredit.com Global Financing Network to speed up credit analyses for transactions.Ryder will use that network in its commercial leasing and programmed maintenance pricing and approval for 150,000 trucks, to evaluate a client's credit and assign an appropriate interest rate. Ryder also plans to use the eCredit.com in collection, the company said. Transport Topics
Headlines From Today's A.M. Briefing
- OPEC to Boost Production, Prices Not Yet Curbed
- Trucker Protests Spread in Europe, End in France
- Union Pacific Rate Increase Set at 3%
- Con-Way Opens Connecticut Center to Increase Coverage
- U.S. Gasoline Prices Up Seven Cents, Survey Finds
- Heating Oil Price Rising, Supplies Low as Cold Winter Expected
- Trailer Bridge Boosts Northeast U.S.-Puerto Rico Service
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