Trucking Technology Report - Aug. 9

FedEx Upgrades Its Online Logistics Offering

A stake in Dulles, Va.-based Vastera Inc., an international trade logistics software and services company, is held by FedEx. Journal of Commerce Online (08/08/00)

Verizon Purchase Plan Complicates Talks With Strikers

While Verizon told its unions that they will continue to have influence over the additional 1,500 jobs in its DSL division, it did not promise the same for future hires. Verizon spokesman Eric Rabe said the unions were made aware of the NorthPoint merger before it was announced yesterday and should have no concerns about the agreement.

The deal calls for Verizon and NorthPoint to combine their DSL holdings and introduce a new company in which Verizon would have a 55% stake and NorthPoint would have a 45% stake. Verizon said it would contribute $800 million to the DSL venture, with $350 million being provided to NorthPoint shareholders as a dividend.

The Communications Workers of America and the International Brotherhood of Electrical Workers unions are concerned that their workers could be left out of profitable new businesses as Verizon moves beyond basic phone service. They continued striking for a third day amid little progress with negotiations toward a new contract.

In addition, Wall Street responded to Verizon's latest quarterly performance by pushing its stock down over 12% and knocking over $12 billion off its market value. The company announced second-quarter earnings of 81 cents per share, compared to an 83 cents-per-share estimate by analysts. Washington Post (08/09/00) P. E1; Goodman, Peter S.

Shippers, Carriers Urged to Use E-Commerce

Shippers and carriers can expand the market for their products and services and reduce transportation costs by using the tools of the new economy. These tools include: use of information technology; operations in global markets; forming close relationships with suppliers; and flexible pricing.

Buyers and sellers can benefit from information technology. Smith also says that information technology encourages improved customer satisfaction, higher customer retention, and more comprehensive market coverage. Competitors in today's market form partnerships and joint ventures in order to offer consumers a more complete package of services.

Meanwhile, shippers and carriers can benefit from having more professionally designed Web pages. Journal of Commerce Online (08/08/00); Mongelluzzo, Bill

Trailers Tracking Speeders Found to Cut Speeding

TTI found that speed trailers caused passenger cars (considered cars, pickups, SUVs, and minivans) by as much as 7 mph and lowered the percentage of speeding vehicles from 9% to 2%. Trucks slowed as much as 8 mph and the percentage fell from 32.6% to 7.6%. TTI compared the effectiveness of speed trailers to radar drones and found that speed trailers were the more effective deterrent.

The test occurred on a four-lane stretch of rural highway U.S. 287 outside Childress, Texas. Rural highways are most likely to be plagued by work-zone accidents. In 1998, 772 people died in work-zone accidents, according to the Fatal Analysis Reporting System, 125 of those in Texas.

Although TTI considered the test successful, the long-term effectiveness of speed trailers is still in question. Analysts point to two major problems with using speed trailers in nontemporary work zones. First, drivers tend to speed up soon after passing speed trailers. Second, once drivers get used to the presence of a speed trailer, they usually begin to ignore its suggested speed. Analysts refer to this as the "learning effect" and are not sure if it can be countered. Roads & Bridges (07/00) Vol. 38, No., 7, P. 50; Carlson, Paul J.

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