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November 7, 2008AAR welcomes its executioner
Analysis of: Rails Welcome Obama Presidency | www.aar.org
Author: Toby Kolstad, President, Rail Theory Forecasts
As lobbyists go, the American Association of Railroads (AAR) has to get the award for chutzpah in giving such a warm welcome to the new president. Like all bureaucrats and most elected officials, Mr. Obama seems to think of rail transportation primarily as a passenger service, although he has noted...
November 6, 2008Auxiliary Power Units Not Providing Energy Savings Or Emissions Reductions As Sold
Analysis of: Idle Reduction Technology Research Sheds Light on APU Decisions | www.truckinginfo.com
Author: Jay Thompson, President and General Manager, Transportation Business Associates
Truck idling versus Auxiliary Power Unit (APU) Return-On-Investment (ROI) got some real and negative feedback in a recently completed North Carolina State University / Volvo Truck EPA-funded study. Bottom-line is that the ROI is tough at best and from the study: “Previous avoided fuel use rates and...
November 6, 2008Con-way's Move Signals Pessimism for Trucking Market
Analysis of: Con-way Freight to Revamp Operating System, Close 40 Terminals | www.etrucker.com
Author: John Schulz, Independent Analyst - Contributing Editor, Logistics Management Magazine
Con-way's decision to revamp its regional LTL footprint and close 40 terminals is a significant move for a $4.6 billion company that has been on a go-go growth path since its inception in 1984. Con-way is usually two or three steps ahead of the rest of the LTL market, and its move to retrench must be...
November 5, 2008A Tough Market, a Merger of Two Units, Debt Covenant Threats and YRC Worldwide
Analysis of: YRC Worldwide to Pay off Debt, Preserve Liquidity | www.forbes.com
Author: John Schulz, Independent Analyst - Contributing Editor, Logistics Management Magazine
YRC Worldwide is hoping it can ride out the current credit crunch and sour freight environment to avoid bankruptcy or further erosion of customer confidence. With about $1.19 billion in debt, the $9.6 billion trucking concern is trying to pay off long-term debt to preserve liquidity and...
November 4, 2008
What a Potential DM&E Expansion into the Powder River Basin Means to the DM&E, Union Pacific (UP), and BNSF
Analysis of: CP Rail Expects DM&E to Earn More than Forecast | www.reuters.com
Author: Thomas Shewski, Owner, High Energy Services
What a Potential DM&E Expansion into the Powder River Basin Means to the DM&E, Union Pacific (UP), and BNSF
Analysis of: CP Rail Expects DM&E to Earn More than Forecast | www.reuters.com
Author: Thomas Shewski, Owner, High Energy Services
The Dakota Minnesota & Eastern (DM&E) Railroad was recently acquired by the Canadian Pacific (CP) Railway. The DM&E has for years been proposing an extension to the Wyoming Powder River Basin coal reserves. This project, if commenced, would upgrade an...
November 3, 2008Down, Down, Down: Three Straight Months of Truck Tonnage Declines
Analysis of: ATA truck tonnage index falls again | www.etrucker.com
Author: John Schulz, Independent Analyst - Contributing Editor, Logistics Management Magazine
The American Trucking Associations' advanced seasonally adjusted for-hire truck tonnage index dropped by 0.9 percent in September, it's third straight month-over-month decline. The details are even worse. The seasonally adjusted index was just 0.8 percent above year-ago levels. September 2007...
October 31, 2008Food Versus Fuel Issue Turning Grain Farmers’ Numbers Ugly, Too
Analysis of: Reviewing biofuel policies and subsidies | www.fao.org
Author: Jay Thompson, President and General Manager, Transportation Business Associates
The food, energy and Biofuels industries all heavily depend on feedstock. I agree with colleagues Mr. Moser and Mr. Timpano regarding food versus fuel, future feedstock’s, food security and sugar cane use for ethanol. After recently attending a Purdue (my alma mater) meeting wearing my Zenergy Bio Fuel...
October 28, 2008Clean air may blow away more railroad coal traffic than clean air rules
Analysis of: CSX chief says coal is under attack | www.topix.net
Author: Toby Kolstad, President, Rail Theory Forecasts
CSX Chairman Michael Ward recently remarked on the growing opposition to coal fired utilities in the country, saying that limiting coal’s use for electricity "is probably one of the stupidest things you could do." For CSX and the other railroads, it would be a bad thing if the electric utilities turned...
October 24, 2008'08-'09-'10 Truck Build Numbers Being Adjusted Way Down
Analysis of: FTR Conference Call: Bad News Bears | www.truckinginfo.com
Author: Jay Thompson, President and General Manager, Transportation Business Associates
The forecast models used by the industry to predict equipment sales needs a readjustment. The forecasting models included diesel prices, metal prices, industrial production, manufacturer orders and personal income / spending, but they had not used at least one major factor - financing availability -...
October 24, 2008Arkansas Best Corp. Stands to Gain Most from YRC Woes
Analysis of: Arkansas Best Corp. Announces Third Quarter 2008 Results | www.prnewswire.com
Author: John Schulz, Independent Analyst - Contributing Editor, Logistics Management Magazine
With LTL giant YRC Worldwide teetering, the biggest potential winner from any shutdown or wholesale closing of YRC operating units would appear to be Arkansas Best Corp., parent of ABF Freight System. At nearly $2 billion in revenue, ABC (or ABF, which makes up the lion's share of its parent's revenue)...
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