P.M. Executive Briefing - Sept. 12
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Times Says Ford Knew of Ignition Defect; Slater Seeks Broader Safety Authority
Company documents show that Ford officials knew of problems with a computerized ignition system on thousands of its vehicles in the 1980s and 1990s, but never told federal investigators about it, the New York Times reported Tuesday.Separately, U.S. Transportation Secretary Rodney Slater told the Senate Commerce Committee Tuesday that federal safety investigators need broader access to product information, in light of the investigation into Ford and Bridgestone/Firestone over 88 U.S. deaths and more than 100 injuries linked to certain Firestone tires on Ford Explorers, the Associated Press reports.
The Times said that throughout the 1980s and 1990s, several federal investigations were conducted based on consumer complaints that Ford vehicles would stall unexpectedly on highways or when making left turns across oncoming traffic. Ford officials maintained there was no way to know what caused the problem; company documents, however, show that they were indeed aware of an ignition part problem and had numerous discussions about it, according to the Times.
New Jersey Turnpike Will Increase Tolls, Use E-Zpass
Tolls will increase on the New Jersey Turnpike Sept. 30, but payment will be made easier with the addition of E-Zpass lanes, the Associated Press reports.With the toll increase also comes new off-peak discounts, the first to be offered in the United States, according to AP. Cars traveling the 148 miles from one end of the state to the other will pay $5.50, up from the previous $4.60 toll. But car drivers using E-Zpass during off-peak hours will pay approximately 20% less, and truckers will pay about 13% less, the AP said.
E-ZPass will initially be offered on 120 dedicated and 41 backup lanes, eventually expanding to all 344 lanes statewide, AP said.
New Jersey Turnpike tolls will increase another 17% for cars and 13% for trucks in 2003 to fund highway improvement projects, the article said. Transport Topics
Firestone Nixes Further Recall, But May Replace More Tires
Bridgestone will not expand a recall of its Firestone tires as requested by the National Highway Traffic Safety Administration, saying the failure rate was low among those additional tires, Bloomberg reports.Bridgestone's U.S. operations executive vice president, John Lampe, said before a Senate hearing Tuesday that there was not enough evidence to warrant recalling the 1.4 million tires additionally requested by NHTSA, the article said.
However, the company will provide free inspections and replacement of tires, or a reimbursement for replacement with competitors' tires, should customers desire, according to Bloomberg.
Lampe also threw more blame in the Firestone tire problems toward Ford Motor Co., saying the tendency of the Explorer sport-utility vehicles to roll over made it difficult for the tire maker to recognize problems with its own product, the article said. Transport Topics
France's La Poste Turns to FedEx to Challenge European Rivals
La Poste, France's postal service, is partnering with FedEx to provide an express delivery service to rival that of European giants TNT Post Group NV and Deutsche Post AG, Bloomberg reported Tuesday.
Under the agreement, FedEx will handle service to Europe and other points worldwide for Chronopost, the express-delivery division of La Poste, the article said. La Poste, in turn, will handle collection and distribution of FedEx parcels in France and Belguim, and later other European points, Bloomberg reported.
Last week, FedEx and the United States Postal Service announced a pending partnership, in which USPS would use FedEx's air transport network and FedEx packages could be dropped off at post offices.
The FedEx-La Poste partnership is bad news for former La Poste ally TPG, operators of the Dutch post office, as FedEx is a major rival to that company, the article said. Transport Topics
Clinton Vow to Fill Heating Oil Reserve Curbs Price
The price of crude oil fell after President Bill Clinton vowed to have emergency reserves of heating oil filled by the end of October, Bloomberg reported Tuesday. Heating oil is very similar to diesel fuel, so a reserve would affect both categories of fuel use, and the price for those supplies.Crude oil dropped to $34.10 a barrel on the New York Mercantile Exchange, a $1.04 or 3% decrease, the report noted.
Clinton said the U.S. Energy Department is setting up a two-million-barrel reserve of heating oil in the Northeast to avoid shortages during the upcoming winter months, the article said. Truckers have feared that any pinch on heating oil supplies this winter would also push diesel costs up from today's already high levels.
Inventories for distillate fuels - which also include diesel - are down 20% from a year ago as the winter heating and peak shipping seasons approach. Transport Topics
International Air Cargo Up, Domestic Down in July
The Air Transport Association says overall air cargo traffic in and out of U.S. airports increased 2.3% in July over the 1999 month, The Journal of Commerce Online reported Tuesday. Such shipments generate business for both local and regional trucking operations.International air freight rose 8.1% for the month, but domestic cargo fell 3.2%, the report said. Mail, freight and express shipments make up cargo traffic.
That disparity between international and domestic shipments has also shown up recently in intermodal container traffic, in line with a slowed U.S. economy while the foreign trade sector continues strong.
Freight and express cargo increased 2.6% system-wide in July, and mail cargo decreased by 0.7%. International mail, freight and express all rose, but domestic mail, freight and express each fell, the article said. Transport Topics
Transportal Reaches North of U.S.-Canada Border to Big Freight Systems
Big Freight Systems, a flatbed and step deck freight specialist, has become the first Canadian company to join the Transportal Network as a charter member.Transportal is an online network for services and products to member motor carriers. It said it now includes 33 companies, which together account for 20,000 tractors and 40,000 trailers and represent nearly $2.5 billion in revenue.
Big Freight System, based in Steinbach, Manitoba, has 300 power units and operates in all Canadian provinces as well as the 48 contiguous United States. The company is a 1998 and 1999 honoree as one of Canada's 50 Best Managed Private Companies, selected by Arthur Anderson & Co., The Financial Post, Canadian Imperial Bank of Commerce, and Canadian Airlines. Transport Topics
Earthgrains Workers Now Striking at 22 U.S. Bakeries
Earthgrains Co., which makes IronKids and Heiner's breads, has seen a workers strike spread to 22 of its 66 U.S. plants, up from 15 last week, Bloomberg reports.Production continues at all the struck plants except those in Des Moines, Iowa and Chattanooga, Tenn., where orders are handled by regional bakeries, the article said.
A strike like this can of course hurt the hauling business for trucks that handle inbound commodity loads and outbound product shipments for the bakeries. The company sprawls across much of the contiguous U.S. map, except for the Northeast and the Pacfic Northwest.
The strike began Aug. 26 at Earthgrains' Fort Payne, Ala. plant, where 680 workers belonging to the Bakery, Confectionery, Tobacco Workers and Grain Millers union walked out over an expired contract, Bloomberg said. Workers at other plants followed suit either to express sympathy for the Alabama workers or because their own contracts had expired, the article said. Transport Topics
Headlines From Today's A.M. Briefing
- Bridgestone/Firestone May Recall 1.4 Million More Tires
- U.S. West Coast Port Truckers Launch Protest
- DaimlerChrysler Extends Detroit Diesel Tender Offer Again
- ATA Names Veterans to Safety, Environmental Posts
- U.S. Diesel Price Rises Again, But Not as Much
- Weak Truck Sales Lead to Worse Earnings Outlook at BorgWarner
- Fed Official Sees Lower U.S. Interest Rates Possible
- European Traffic Woes Continue, Could Worsen if Eurotunnel Union Votes to Strike
- INC2inc, Menlo Logistics Team Up
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