News Briefs - April 26
The Latest Headlines:
- Pa. Turnpike Closed, May Stay Shut Through Weekend
- Missouri Bill Would Raise Diesel Fuel, Gasoline Tax
- Swift Sees 1Q Profits Rise
- Senate Committee to Hold Ergonomics Hearing
- Coughlin Named Aviation Group CEO
- U. of Michigan Sentiment Survey at Two-Month Low
- Federal Deficit Could Top $100 Billion
- Crude Oil Price Falls as Embargo Talk Cools
- Rail Intermodal Continues Gain
- Missouri Bill Would Raise Diesel Fuel, Gasoline Tax
Pa. Turnpike Closed, May Stay Shut Through Weekend
The Pennsylvania Turnpike has been closed in both directions near Harrisburg since Friday morning due to of an accident that damaged the Tuscarora Tunnel, Transcom reported.The turnpike connects western Pennsylvania with Philadelphia. Part of the it encompasses interstates, 70 and 76, which are major routes to the Midwest and points west.
The accident happened west of Harrisburg, near where the turnpike connects with interstates 81 and 70. The road may remain closed through the weekend. Transport Topics
Missouri Bill Would Raise Diesel Fuel, Gasoline Tax
The Missouri state Senate passed a transportation funding bill on Wednesday that would raise the tax on diesel fuel gasoline to 23 cents a gallon from the current 17 cents, the Associated Press reported. Revenues from the tax would toward improving roads and bridgesWhile this tax could help save truckers money in repair costs from better roads, it also means they will have to pay more to fill up their tanks on a regular basis.
The legislation is subject to statewide vote in August. If approved, the new taxes would take effect Jan. 1.
The bill would also raise the state sales tax to 4.6 cents per dollar. Some of this money would be used to fund ethanol and biodiesel programs. Transport Topics
Swift Sees 1Q Profits Rise
Swift Transportation Co. Inc. said Friday that net income for the first quarter was $9.4 million, or 11 cents per share, compared with $259,000, or zero cents per share, a year ago.The Phoenix-based truckload carrier also noted that results for the first quarter of 2001 were altered to reflect last June's acquisition of M.S. Carriers Inc.
Revenues for the first quarter of 2002 decreased 6.6% to $475.8 million, compared with $509.6 million for the corresponding quarter of 2001. Jerry Moyes, chairman and chief executive officer of Swift, said high driver turnover at M.S. Carriers was partly to blame for the decrease in revenue.
Swift is ranked No. 17 on the 2000-2001 Transport Topics 100 list of the largest trucking companies in the United States. Transport Topics
( for the full press release.)
Senate Committee to Hold Ergonomics Hearing
Sen. Edward Kennedy (D-Mass.), chairman of the Senate Health, Education, Labor and Pensions Committee, will hold a hearing on May 1 to consider a bill requiring governement regulations of ergonomic standards in the workplace.Ergonomics rules are aimed at protecting workers from musculoskeletal injuries. Studies have shown that truckers have high incidents of injuries from repetitive stress.
The bill could be moved to the full Senate for a vote on the same day.
A House subcommittee on Thursday said it would support the Bush administartion's voluntary approach to develop guidelines to protect workers. John Wislocki
Coughlin Named Aviation Group CEO
Transportation safety expert Susan M. Coughlin is switching her area of focus from trucking to aviation effective June 10, when she takes the position of chief executive officer of the Aviation Safety Alliance.For the past four years Coughlin has run the American Transportation Research Institute, formerly known as the ATA Foundation, an affiliate of American Trucking Associations. Prior to that Coughlin served on the National Transportation Safety Board from 1990-1994.
Her new appointment was announced by the ASA Chairwoman Carol B. Hallett April 23. Hallett is also the CEO of the Air Transport Association.
The safety alliance was founded in 1998 as a not-for-profit advocacy group to address issues of airline safety. Most of its corporate member-sponsors are passenger and cargo airlines and aviation manufacturers. Jonathan S. Reiskin
This story appeared in the April 29 print edition of Transport Topics. Subscribe today.
U. of Michigan Sentiment Survey at Two-Month Low
The University of Michigan said Friday that its consumer sentiment index for April fell to a two-month low of 93.When people fell good about the economy, consumer spending, which the trucking industry relies on for much of its revenue, is likely to rise.
The assessment of current conditions fell to 99.2 from 100.4, while the outlook index fell to 89.1 from 92.7.
Analysts had expected a reading of 94.5, Bloomberg reported. April’s preliminary reading was 94.4. Transport Topics
Federal Deficit Could Top $100 Billion
As a result of federal tax revenues being significantly lower than anticipated, several budget experts are projecting that the federal government’s budget deficit will top $100 billion in fiscal 2002, the Washington Post reported Friday.The increased deficit will likely force government leaders to either reduce spending or raise taxes in order to re-balance the budget, the Post said. Either of these moves could negatively impact trucking because they could slow the paced of commercial and personal spending.
The Congressional Budget Office has projected a $46 billion shortfall in fiscal 2002, factoring in the president’s tax cut, the slowing economy and spending for the economic stimulus, the Post reported. Now, with income tax revenues $40 billion below projections, the final tally could be $30 to $70 billion larger.
The Republican staff director of the Senate Budget Committee, G. William Hoagland, told the Post that there is some concern over the government’s ability to meet the 2004 deadline set by President Bush to re-balance the budget. Transport Topics
Crude Oil Falls as Embargo Talk Cools
A round of meetings Thursday between President Bush and Saudi Arabia’s Crown Prince Abdullah sent crude oil prices down after speculation of an oil embargo by the Saudis cooled, Bloomberg reported.Saudi Arabia is the world’s largest oil producer. If it stopped selling oil to the U.S., it would drastically cut supplies and send prices higher. Higher oil prices would hurt trucking because fuels like diesel and gasoline are distilled from crude.
Bush told reporters that Abdullah assured him that Saudi Arabia would not use oil as a weapon. It had been feared that more Arab nations would cease exports of oil to the U.S. – joining Iraq in an effort to get the United States to pressure Israel to pull its troops out of Palestinian-controlled areas.
In trading Friday, oil prices fell 30 cents, or 1.2%, to $25.63 a barrel on the International Petroleum Exchange in London. Transport Topics
Rail Intermodal Continues Gain
For the second straight week railroad intermodal loadings were solidly ahead of the totals for a year ago, the Association of American Railroads reported Thursday.Intermodal is the segment of the railroad business most directly competitive with long-haul trucking.
During the week ended April 20, trailer and container loadings totaled 184,848 which was up 13%, from the 163,610 loaded in the corresponding week of 2001.
Trailer loadings were up 4.9% and container loadings up 16.2% in the week-to-week comparison.
For the first 16 weeks of the year, intermodal loadings totaled 2,699,678, representing a 0.9% increase over the 2,674,481 trailers and containers loaded in the first 16 weeks of 2001. Transport Topics
Ìý