Executive Briefing - Sept. 12
- Midway Airlines Shuts Down Operations
- Trucks Given OK to Carry Blood to NYC
- Postal Service Proposes Stamp Hike
- Grounding of Planes Lowers U.S. Oil Demand
- Several Ports Remain Shut
- Volvo Volunteers Equipment of Clean Up
- ATA Gearing Up for MC&E
- U.S. Crude Oil Inventories Rose Last Week
- Trucks Given OK to Carry Blood to NYC
Midway Airlines Shuts Down Operations
Citing the impact of Tuesday's terrorist attacks on its already fragile financial situation, Midway Airlines said Wednesday it was suspending all flight operations, putting its 1,700 employees out of work.Under normal circumstances, a large amount of cargo flies in the bellies of passenger planes. Also, all air freight involves local and regional truck operations, so the sudden decision from Midway could have a big affect on many trucking companies.
The airline filed for Chapter 11 bankruptcy on Aug. 13, and said it expects demand for air transportation to decline sharply following the attacks.
The company posted losses of $15 million in 2000 and another $15 million in the first six months of this year. Transport Topics
Trucks Given OK to Carry Blood to NYC
America’s Blood Centers have been cleared to start shipping blood to the New York City area by air and by trucks."In the wake of this horrific tragedy, America's Blood Centers are supporting those in desperate need of blood," said Jeanne Dariotis, president of America's Blood Centers. "Our community blood centers will continue to be on-call throughout the country and will be ready when the calls from New York and New Jersey come in.”
In some cases, blood is being routed primarily through New Brunswick, N.J. Other shipments are going directly to downtown New York with a police escort. Transport Topics
( for the full press release)
Postal Service Proposes Stamp Hike
The United States Postal Service Board of Governors proposed a three-cent increase in the price of a first class stamp, Reuters reported Tuesday.The service said the price of a stamp could rise to 37 cents as early as 2002 if the independent Postal Rate Commission approves the increase. Stamp prices rose by 1 cent in January. The price of an Express Mail package would increase 9.7% and Priority Mail would increase 13.5% under the plan, the news service said.
The Postal Service expects to lose $1.65 billion for its fiscal year ending Sept. 30. Transport Topics
Grounding of Planes Lowers U.S. Oil Demand
The suspension of all commercial air traffic in the United States in the wake of Tuesday’s attacks could lower U.S. oil demand by as much as 1.8 million barrels a day, according to a report from Deutsche Bank.The U.S. demand for oil dropped 10%, or 1.8 million barrels, because of the flight suspension, Reuters noted.
Deutsche Bank estimated for every 1% loss in expected growth domestic product growth worldwide, there would be a 400,000 barrels per day decrease in demand, Reuters reported. Transport Topics
Several Ports Remain Shut
According to Wally Lockland, spokesmen for the U.S. Maritime Administration, the following U.S. ports are were closed as of 9 a.m. EDT due to Tuesday’s terrorist attacks.--The Port Authority of New York and New Jersey
-Port of Valdez (Alaska)
-Port Everglades (Florida) Transport Topics
Volvo Volunteers Equipment of Clean Up
The world’s No. 2 truck maker, Volvo AB, has offered use of its construction equipment and trucks in the clean up efforts in Manhattan and Washington after Tuesday’s attacks.A company spokesman said that the Swedish truck manufacturer has offered its full resources to U.S. authorities, adding they have a great deal of loading and construction equipment on hand, Bloomberg reported. Transport Topics
ATA Gearing Up for MC&E
The American Trucking Associations is getting ready for the upcoming Management Conference and Exhibition, to be held Oct. 28-31, in Nashville, Tenn.Among the topics for discussion are driverless trucks, the “ten commandments” of the Motor Carrier Act, new 2007 diesel fuel rules, “e-everything” and how to handle Washington politics.
“Success in the trucking industry is no longer just about keeping 18 wheels safely between the lines and making deliveries on time,” said Duane W. Acklie, ATA chairman. “Our Nashville Management Conference and Exhibition will give all of us – large and small carriers – the chance to network with the best in the business, and to learn from that.”
More information about the conference is available at http://www.truckline.com. Transport Topics
U.S. Crude Oil Inventories Rose Last Week
U.S. crude oil inventories unexpectedly rose by 22,000 barrels to 304.9 million last week, the American Petroleum Institute reported late Tuesday.Supplies now stand at 304.9 million, leaving them 5.6% higher than at the same time last year. Analysts expected a decline at least 1.5 million barrels, according to Bloomberg.
The API reported that gasoline supplies rose for the first time in nine weeks, increasing by 159,000 barrels to 194.6 million. Transport Topics