WHAT'S UP DOC?
What's up Doc?
Crime Wave? A recent article in the Wall Street Journal noted that six large and well known international freight forwarders have agreed to plead guilty and pay fines totaling more than $50 million in a federal investigation. EGL, Kuehne & Nagel, Geologistics, Panalpina, Schenker and BAX Global were accused of price fixing for international air cargo shipments. Each of the companies have agreed to cooperate in the ongoing investigation.
Diesel Fuel Prices: Average prices as published by the Federal Department of Energy jumped up to 3.00 on October 4, 2010. a five cent increase from the week before. This is the highest we have seen it since last May, but is still well below the peak of 4.764 reached two years ago on July 14, 2008.
Bigger and Better? A recent article in the Wall Street Journal entitled “Supersizing Hits Freight World” spoke of several moves afoot to make our domestic transportation more efficient. They report that a coalition of 150 companies is lobbying Congress to allow trucks that are 20% heavier on U.S. Highways than the limits imposed by Congress in 1974. Far from saying that there would be no harm to the highways, supporters suggest that truckers could pay an extra fee to offset road repairs. Guess who would end up underwriting those fees? Not to be outdone, several railroads are experimenting with longer trains, including Burlington Northern, CSX and Union Pacific. The latter road recently actually ran an experimental train more than three miles long in California. Having to wait at a level crossing for that monster to pass conjures up all kinds of visions!
Mexico and NAFTA: Mexico is taking another shot at getting agreement to operate their trucks on U.S. Highways, a system the North American Free Trade Act promised would be created in 2000. They have imposed tariffs on a large group of items, seemingly designed to hurt large or influential industries, in an apparent attempt to finally get access to the U.S for Mexican carriers.