The Logistics Blog ~ Supply Chain and Freight: March 2012

Friday, March 30, 2012

2012 National Diesel Fuel Prices up 9.1% since January 2012

2012 National Diesel Fuel Prices up 9.1% since January 2012

3/26/12 $4.147

3/19/12 $4.142

3/12/12 $4.123

3/5/12 $4.094

2/27/12 $4.051

2/20/12 $3.960

2/13/12 $3.943

2/6/12 $3.856

1/30/12 $3.850

1/23/12 $3.848

1/16/12 $3.854

1/9/12 $3.828

1/2/12 $3.783

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Canadian Shippers See Freight Costs Rise Again -Source Trucking News

Thursday, March 29, 2012

January 2012 Surface Trade with Canada and Mexico Rose 11.5%  from 2011 - Source HDT

January 2012 Surface Trade with Canada and Mexico Rose 11.5%  from 2011

Trade using surface transportation between the U.S. and its North American neighbors, Canada and Mexico, was 11.5% higher in January 2012 than in January 2011, totaling $75.5 billion, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation.

BTS, a part of the Research and Innovative Technology Administration, reported that the January 2012 value of U.S. surface transportation trade with Canada and Mexico rose 15.9% from January 2008, which was one month after the start of the recession, and 59.2% from January 2009, in the middle of the recession.

The value of U.S. surface transportation trade with Canada and Mexico in January increased by 82.8% compared to January 2002, a period of 10 years. Imports in January were up 72.7% since January 2002, while exports were up 96.5%.

Surface transportation includes freight movements by truck, rail, pipeline, mail, Foreign Trade Zones and other. In January, 86.3% of U.S. trade by value with Canada and Mexico moved via land, 9.8% moved by vessel, and 3.9% moved by air. By all modes of transportation, U.S.-Canada trade and U.S.-Mexico trade accounted for 16.2% and 12.8%, respectively, of total U.S.-world trade in January 2012.

U.S.-Canada and U.S.-Mexico surface transportation trade both increased compared to January 2011 with U.S.-Canada reaching $44.1 billion, a 9.6% increase, and U.S.-Mexico reaching $31.4 billion, a 14.3% increase.

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Trends from Mid-America: Natural gas Source That's Trucking Blog

Trends from Mid-America: Natural gas
All That's Trucking blog by Deborah Lockridge, Editor in Chief

Nearly every press conference and presentation at the Mid-America Trucking Show in Louisville, Ky., last week seemed to mention natural gas. Navistar even had natural-gas guru T. Boone Pickens himself on hand. In some presentations and casual discussions, however, there also was a feeling that perhaps it was being a bit too hyped. Fact is, it's still a niche market.

A sampling of the news:

Cummins announced it has begun development of a 15-liter heavy-duty, spark-ignited natural gas engine for on-highway applications. The move builds on the recent decision to produce a factory-built, dedicated natural gas version of the 12-liter ISX engine, the ISX12.

The ISX15 G will be based on the ISX15 diesel engine and will build on Cummins' spark-ignited, Stoichiometric cooled Exhaust Gas Recirculation technology. A simple, maintenance-free Three-Way Catalyst will be the only required exhaust aftertreatment. The engine will run on compressed natural gas, liquefied natural gas or biomethane. Cummins expects the ISX15 G to be in limited production by 2014.

Volvo Trucks added a natural-gas fueled truck to its VNL lineup. When the natural gas option goes into full production, it will feature a 12-liter, 400 horsepower, 1,450 pounds-foot Cummins Westport ISX12 G engine that uses compressed or liquefied natural gas. Volvo is currently operating natural gas-powered VNL demonstrator trucks, with production beginning in conjunction with commercial availability of the 12-liter gas engine, which Cummins says should be in early 2013.

Kenworth is expanding its line of green products by offering the Cummins Westport ISX12 G heavy duty natural gas engine for use in regional haul, vocational and refuse markets.

Navistar's new LoadStar severe-service low-cab-forward will have a Cummins ISL-G natural gas engine as one of its power options. (Kenworth already offers the 15-liter Westport HD and the 8.9-liter Cummins Westport ISL G as factory-installed options.)

Chevron introduced a new premium oil for natural gas engines. One thing I learned talking to Chevron's Jim Gambill was that natural-gas engines typically have a much shorter drain interval than their diesel counterparts -- about a quarter as long, he said.

In an address to suppliers, Dan Sobic, Paccar executive vice president, said when you look at the fuel infrastructure in North America, today there are about 5,000 locations that serve diesel fuel. There are only about a thousand that have CNG or LNG, with LNG being about 150 of that total.

"The market probably today, best estimate is 8,000 trucks," he said. "Out of 220,000 to 240,000, that is still a small piece. I think the infrastructure has to continue to be developed, and secondly [we need to address] the upfront costs, whether it's through incentives or other means. Once you have the vehicle the efficiency's very good, but upfront can add $40,000 to $80,000 to the cost of a truck.

"Diesel fuel will still power trucks because it is the most efficient way to move trucks around."

Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz

UPDATE: Brazilian Sugar Vessel Hijacked In Indian Ocean - NATO - Source Dow Jones

UPDATE: Brazilian Sugar Vessel Hijacked In Indian Ocean - NATO

By Neena Rai

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--A vessel loaded with Brazilian sugar destined for Iran has been hijacked in the eastern Indian Ocean Monday, according to the North Atlantic Treaty Organization's shipping center.

Somali pirates are suspected of carrying Monday's attack, a spokeswoman for NATO's shipping centre told Dow Jones Newswires.

According to AIS Marine Traffic shipping data, the Bolivian-flagged vessel was destined for Bandar Imam Khomeini port in Iran.

A total of 23 crew were on board but their nationalities aren't known.

Sourcing food commodities and oil for many nations is becoming increasingly tricky because dry cargo carriers and crude tankers must travel through areas such as the Gulf of Aden, a region prone to Somali hijackings.

Of the 439 pirate attacks during 2011, 275 took place off the coast of Somalia or in the Gulf of Guinea, off the west coast of Africa. The report shows that Somali pirate attacks were mainly concentrated where the Arabian Sea meets the Gulf of Aden, although 2011 marked the first hijacking by Somali pirates of an anchored vessel from the territorial waters of a foreign state, that of Oman.

-By Neena Rai, Dow Jones Newswires; 4420-7842-9450; neena.rai@dowjones.com

(END) Dow Jones Newswires

26-03-12 1554GMT

Gas explosion risk at stricken North Sea rig - Source AP

Gas explosion risk at stricken North Sea rig

By Katy Lee

LONDON, (AFP) - French energy giant Total Total readied a mini-submarine Wednesday in a bid to inspect a huge gas leak at a North Sea rig but played down fears of a massive explosion.

A ship carrying the remote-controlled sub, as well as two firefighting ships, have sailed into the vicinity of the Elgin platform, which lies 150 miles (241 kilometres) off the coast of eastern Scotland.

An expert warned that gas pouring from the platform could ignite with catastrophic consequences if it came into contact with a flare left burning when 238 workers were evacuated from the rig on Sunday.

But a TotalTotal spokeswoman said the wind was not currently blowing the cloud of highly flammable gas towards the flare, despite it being less than 100 metres (330 feet) above the leak.

"We don't see it as a risk because of the prevailing winds and the location of the flame in relation to where the gas leak is," the spokeswoman said.

TotalTotal called in an exploration ship carrying the remote-controlled mini-sub, which is equipped with cameras, late Tuesday. Its task is to assess the underwater leak on the rig.

On Wednesday, the ship, the Highland Fortress, lay just outside a two-nautical mile (3.7 kilometres) exclusion zone around the platform, along with two firefighting vessels, said TotalTotal.

The risk is that if the wind currently blowing the gas away from the flare dropped, the gas could ignite, said Simon Boxall, an oceanographer at Southampton University in southeast England.

"The chances are the gas will disperse quite quickly," Boxall told AFP.

"But if the wind stops completely, gas will build up towards the flame. This could create an explosion.

"At the moment things are working on the side of TotalTotal," he added. "The flare is at the highest part of the rig, and the gas itself... is fairly heavy, so it's lying low."

But the offshore branch of the RMT union warned that if the leak did ignite, the results would be devastating.

"TotalTotal acted very swiftly in getting everyone off, but the potential still exists for catastrophic devastation," said offshore organiser Jake Molloy.

But he added: "If the gas cloud somehow finds an ignition source we could be looking at complete destruction."

While TotalTotalsays the leak is the most serious problem it has faced in the North Sea for a decade, it insists the environmental impact is minimal.

The company said it was considering various ways of stopping the leak.

"There has been some speculation about a second well being drilled," to stop the flow of gas, a spokesman said.

"But we believe it could take up to six months if that was the preferred option," he added.

The company's shares, which plunged 6.0 percent on the French stock exchange on Tuesday, finished down a further 1.40 percent at just over 38 euros on Wednesday.

Flares on offshore platforms are commonly used to burn off excess gas that the rig does not use or capture, but it was not clear whether TotalTotal had left the flame burning intentionally when the platform was abandoned.

More than 300 people have been evacuated from two rigs since the leak was discovered on Sunday and a six-mile long sheen of gas condensate has spread on the water nearby.

Shell has shut down production at its Shearwater platform and Noble Hans Deul rig four miles away and evacuated 85 crew as a precautionary measure.

The last major accident in the North Sea was in 1988, when the Piper Alpha oil platform operated by the US-based Occidental Petroleum exploded, killing 167 people.

The incident comes two years after BP's reputation was badly hit by a blowout at the Deepwater Horizon oil drilling rig in the Gulf of Mexico.

That explosion killed 11 crewmen and caused oil to gush into the water triggering the worst environmental disaster in US history.

kjl/jwp/jj

Oil prices edge up before US data - Source AP

Oil prices edge up before US data

LONDON, (AFP) - World oil prices crept higher on Tuesday, as dealers awaited key economic data in top crude consumer the United States, and eyed the weak dollar and new supply tensions in Sudan.

In late morning deals in London, Brent North Sea crude for delivery in May added just two cents to $125.67 a barrel.

New York's main contract, West Texas Intermediate (WTI) crude for May, won 29 cents to $107.32 per barrel.

"The oil market is on a consolidation mode, as investors remain cautious ahead of the release of the US data that could set the tone for today's trading session," Sucden commodities analyst Myrto Sokou told AFP.

"WTI crude oil is trading within the narrow range of $107-$108 per barrel," she added.

Traders will focus this week on a raft of crucial economic figures across the Atlantic, with consumer confidence due on Tuesday, durable goods orders on Wednesday and the final estimate of fourth-quarter economic growth on Thursday.

The market will also digest the Chicago-area purchasing managers' index and figures on personal income on Friday.

Crude futures had risen on Monday after US Federal Reserve chairman Ben Bernanke indicated that the central bank would likely keep its easy money policy for the time being, citing continued weakness in the job market.

The news pushed the euro late Monday to $1.3368, reaching its highest level since February 29.

The weaker greenback makes dollar-priced crude cheaper for buyers using stronger currencies. This tends to stimulate oil demand and prices.

Investors' worries have been stoked by the recent spate of glum data out of China, including contracting manufacturing activity and a huge trade deficit amid falling demand from debt-wracked Europe -- the biggest buyer of Chinese exports.

Aside from economic worries, traders are also mindful of fresh supply-side worries in Sudan.

Sudanese warplanes launched a second day of bombardment of oil-rich areas of South Sudan Tuesday, after bloody clashes between ground troops of the rival states, a Southern official said.

Sudanese President Omar al-Bashir suspended an April summit with his Southern counterpart Salva Kiir following the flare-up, prompting UN chief Ban Ki-moon to appeal for calm between the former civil war foes.

Khartoum said the attacks were in response to raids by Southern troops on Monday on Sudanese territory.

On Monday, Kiir said his troops had driven northern forces back across the undemarcated border and seized Khartoum's Heglig oil field, parts of which are claimed by both sides.

Border tensions have mounted since South Sudan split from Sudan in July after decades of war to become the world's newest nation, with each side accusing the other of backing proxy rebel forces against it.

burs-rfj/bcp/rl

Monday, March 26, 2012

Airbus, Boeing and Embraer Launch Joint Biofuels Project - Source France-Presse

Airbus, Boeing and Embraer Launch Joint Biofuels Project

The aircraft makers aim to come up with a so-called 'drop-in' technology that all airplane models could use, regardless of the make.

By . Agence France-Presse

Plane manufacturers and bitter rivals Airbus SAS and Boeing Co., along with Brazil's Embraer SA, on Thursday announced a joint plan to develop affordable biofuels for the airplane industry.

The airplane sector leaders agreed to seek opportunities "to speak in unity" to government and biofuel producers "to support, promote and accelerate the availability of sustainable new jet fuel sources," a joint statement from the companies said.

The companies aim to come up with a so-called "drop-in" technology that all airplane models could use, regardless of the make.

Airbus (IW 1000/56 ) and Boeing (IW 500/15) already have launched programs independently to develop alternatives to kerosene -- a major greenhouse gas pollutant -- to power their airplanes.

"We are all committed to take a leading role in the development of technology programs that will facilitate aviation biofuels development and actual application faster than if we were doing it independently," said Paulo Cesar Silva, CEO of Embraer (IW 1000/644).

The aircraft makers said they are committed to reducing the industry's substantial carbon footprint, the term commonly used for emissions of greenhouse gases.

"We've achieved a lot in the last 10 years in reducing our industry's (carbon) CO2 footprint -- a 45% traffic growth with only 3% more fuel consumption," Airbus CEO Tom Enders said.

Airbus on Wednesday announced a project with airline Virgin Australia to explore biofuel production from eucalyptus leaves that grow in arid regions.

Copyright Agence France-Presse, 2012

Friday, March 23, 2012

Trucking Resource Council Gets Funding for Other, Other Trucking Jobs - Source Trucking Info

February Commercial Vehicle Orders Drop - Source Trucking Info

Truck Builders Report American Fleets Buying Lots of New Trucks - Source HDT

TransCore's Spot Market Freight Climbs 24 Percent Over January - Source HDT

Crude Prices Continue to Yo-Yo-Source Rigzone

Crude Prices Continue to Yo-Yo

by Rigzone Staff

Down Tuesday, up Wednesday, and now down again Thursday; the price of crude has definitely been bouncing around of late. Thursday's losses were pressured by the Chinese Manufacturing figures, which according to the HSBC purchasing managers' index fell to a four-month low of 48.1 in March.

WTI Intermediate crude futures suffered a loss of 1.8 percent, down $1.92 to settle at $105.35 per barrel on the NYMEX. Brent crude for the May contract also fell Thursday. Front-month Brent settled at $123.14 per barrel, or down $1.06, on Thursday.

Reformulated gasoline also fell in line, dropping less than one percent to settle 2 cents lower at $3.3396 per gallon.

Natural gas was one of the weaker energy commodities trading, falling 9 cents, or 3.9 percent, to $2.27 per MMBtu at settlement of the April contract.

Wednesday, March 21, 2012

Lincoln Composites receives permit from the US DOT

16 March 2012

The US Department of Transport (DOT) has granted Lincoln Composites a permit that authorises the manufacture, marking, sale and use of its TITAN™ composite compressed gas storage tank transport modules in the US.

The TITAN tank consists of a high density polyethylene (HDPE) liner, filament wound carbon fibre/epoxy composite shell, and a polyurethane outer coating. Four TITAN tanks are contained in a TITAN Module transport system.
The DOT permit authorises use of the Lincoln Composites composite cylinders in the market of transportation of compressed gases, including natural gas, hydrogen, and certain inert gases. Modes of transportation authorised include motor vehicles, rail freight, and cargo vessels.
"Using composite technology means significant payload increases while reducing the weight of the trailers and that means lower operating costs for bulk gas transportation in the US," reports Jack Schimenti, Lincoln Composites Managing Director.
"Even with significant pipeline networks in the US, there are still many factories located off the pipeline grid that will realise significant cost savings by switching to natural gas for their power generation needs."
The DOT special permit is valid until 31 December 2013 with possibility of renewal.
Lincoln Composites, Lincoln, Nebraska, USA, is a business unit of Hexagon Composites of Norway.

Teijin opens US carbon fibre composites centre

21 March 2012

The Teijin Composites Application Center (TCAC), which will develop applications for carbon fibre reinforced thermoplastic composites, will open in Auburn Hills, Michigan, next month.

The technical centre will work on automotive and other industrial applications of carbon fibre reinforced thermoplastics.
The TCAC is part of Teijin Advanced Composites America Inc (TACA), a company Japanese carbon fibre producer Teijin established in December 2011 to conduct marketing and develop applications for carbon fibre reinforced thermoplastic composite products.
TACA is a wholly owned subsidiary of Teijin Holdings USA Inc, the Teijin Group’s holding company in the US.

Automotive applications

Teijin’s carbon fibre composite business is centered on its technology for high volume production of carbon fibre reinforced thermoplastic components with cycle times of less than 1 minute. The company says this represents a big move towards the increasing use of carbon fibre in cars other products.
In December, Teijin signed an agreement with General Motors to co-develop carbon fibre composite technologies for potential high-volume use in GM cars, trucks and crossovers. This development will take place at the TCAC.

DOT Says U.S. Needs $101 billion a Year to Maintain Infrastructure - Source Trucking Info

DOT Says U.S. Needs $101 billion a Year to Maintain Infrastructure

A new report from the Department of Transportation projects that the U.S. needs $101 billion annually plus increases for inflation during the next 20 years from all levels of government to maintain the nation's highway and transit systems.

The report, 2010 Status of the Nation's Highways, Bridges and Transit: Conditions and Performance , also identifies opportunities for investments to improve the current state of highways and bridges that could total up to $170 billion a year. It shows that in 2008, all levels of government - local, state and federal - spent a combined total of $91.1 billion on highway capital improvements, a 48.4% increase from 2000.

The Obama Administration's FY 2013 budget request calls for $305 billion for highway programs over six years, a 34% increase for roads and bridges from the previous authorization.

"We see significant improvements with every dollar," says Federal Highway Administrator Victor Mendez. "The President called on us to create an America built to last, and while we have a long way to go to upgrade our nation's highways and bridges, we owe it to future generations to get to work and make it happen."

Conditions and Performanceis a biennial report to Congress that provides information on the physical and operating characteristics of the highway, bridge and transit components of the nation's surface transportation system.

Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz

Mid-America Trucking Show in Louisville This Week-Source HDT

Mid-America Trucking Show in Louisville This Week

The 2012 Mid-America Trucking Show in Louisville, Ky., runs Wednesday through Saturday this week with concerts, seminars and an FMCSA "listening session" on electronic onboard recorders in addition to the extensive exhibit halls.

New this year on March 21, the day before the show, is a special in-depth Fleet Forum for fleet executives and Heavy Duty/Commercial Vehicle industry VIPs, put on jointly by Heavy Duty Trucking and Fleet Owner magazines.

Following are some of the events happening at this year's show at the Kentucky Exposition Center March 22-24.

Thursday, March 22

Show hours 1-6 p.m.

What:Canaan Smith - Live performance and autograph session
When: 12:30-1:30 p.m. and 1:30-2:30 p.m.
Where: At 12:30, Red Eye Radio booth, South Wing Lobby A; At 1:30, Western Star booth

What: Miss Willie Brown - Live performance and autograph session
When: 3-4 p.m. and 4-5 p.m.
Where: At 3 p.m., Red Eye Radio booth, South Wing Lobby A; At 4 p.m., Western Star booth

What: Paul K. Young Truck Beauty Show
When: Trucks will be shown all day Thurs.-Sat.
Where: Lot J behind the West Wing
The 23rd annual PKY Truck Beauty Championship will celebrate North America's heavy-duty, working show trucks. The awards presentation will take place Saturday in B101-B103, South Wing Lobby, from 10 a.m. to noon.

What: OnGuard Ride-n-Drive Experience
When: All day, March 22-23
Where: Booth #99500 in the back of the South Wing
Meritor Wabco demonstrates its OnGuard Collision Safety System by letting attendees ride in an OnGuard-equipped vehicle for free.

What: Bendix Tech Talks
When: 10:30 a.m. to 3:30 p.m., March 22-23; 10:30-12:30 March 24
Where: Booth #99500 in the back of the South Wing

Thursday 3/22:
10:30 a.m. Trucking Hot Topic: What's New with Air Disc Brakes?
11:30 a.m. Trucking Hot Topic: The Keys to CSA for Fleets and Drivers
12:30 p.m. How-to Session: Top Questions on Proper Maintenance and Inspection of Air Foundation Brakes
1:30 p.m. Trucking Hot Topic: Clutch Compressors: The Key to Improved Fuel Economy and Vehicle Performance
2:30 p.m. How-to Session: Proper Alignment of Your Vehicle Radar System
3:30 p.m. Trucking Hot Topic: The Keys to CSA for Fleets and Drivers

Friday 3/23:
10:30 a.m. Trucking Hot Topic: How Can Oil-Coalescing Air Dryers Improve and Protect Your Vehicle?
11:30 a.m. Trucking Hot Topic: The Keys to CSA for Fleets and Drivers
12:30 p.m. How-to Session: Proper Alignment of Your Vehicle Radar System
1:30 p.m. How-to Session: Service and Troubleshooting for Vehicle Compressors
2:30 p.m. How-to Session: Why Tire Pressure Monitoring Systems?
3:30 p.m. How-to Session: Top Questions on Proper Maintenance and Inspection of Air Foundation Brakes

Saturday 3/24:
10:30 a.m. How-to Session: Proper Alignment of Your Vehicle Radar System
11:30 a.m. How-to Session: Why Tire Pressure Monitoring Systems?
12:30 p.m. How-to Session: Top Questions on Proper Maintenance and Inspection of Air Foundation Brakes

Seminars:

1 p.m. Medical Qualifications of Drivers - Healthy Drivers are Critical to Highway Safety!, FMCSA
2 p.m. Improving Highway Safety - The New Hours of Service Regulations, FMCSA
3 p.m. CSA Status - Improving on a Solid Foundation, FMCSA
4 p.m. Top Ten Things You Need to Know About a Roadside Inspection, FMCSA
5 p.m. Power of the Plug: Truck Stop Electrification as the Anti Idling Solution, Kate Miller, Cascade Sierra Solutions and Joe Licari, Shorepower Technologies

Friday, March 23

Show hours 10 a.m.-6 p.m.

What: Back on the Road award presentation
When: 11 a.m. - noon
Where: Arrow Truck Sales Booth
The Back on the Road program awards one deserving trucker with a second chance: a new truck, a job and a variety of other prizes that will help keep him or her on the road.

What:Randy Travis- Meet and greet and autograph session
When: 10 a.m.-12 p.m.
Where: Red Eye Radio booth, South Wing Lobby A

What: FMCSA "listening session" on electronic on-board recorders and driver harassment.
When:10 a.m. to Noon and 2-4 p.m.
Where: South Wing Conference Room C101

What: Blackberry Smoke - Meet and greet and autograph session
When: 2-3 p.m. and 3-4 p.m.
Where: At 2 p.m., Red Eye Radio booth, South Wing Lobby A; At 3 p.m., Western Star booth (live performance at this session)

What: MATS 2012 Live Concert
When: Immediately following the Friday edition of MATS
Where: Freedom Hall
The MATS 2012 Concert will feature James Otto, Blackberry Smoke and El Camino. Stop by Mobil Delvac's booth (#18160 in the north wing) for complimentary tickets while they last.

Seminars:

10 a.m. CSA Status-Improving on a Solid Foundation, FMCSA
11 a.m. Drivers Make a Difference, Administrator Anne S. Ferro, FMCSA
Noon Improving Highway Safety-The New Hours of Service Regulations, FMCSA
1 p.m. Medical Qualifications of Drivers-Healthy Drivers are Critical to Highway Safety!, FMCSA
2 p.m. Top Ten Things You Need to Know About a Roadside Inspection, FMCSA
3 p.m. Designing the Truck for Maximum Fuel Mileage, Kevin Rutherford, Trucking Business and Beyond
4 p.m. Designing the Truck for Lowest Maintenance Cost, Kevin Rutherford, Trucking Business and Beyond
5 p.m. Operating the Truck for Maximum Profit, Kevin Rutherford, Trucking Business and Beyond

Saturday, March 24

Show hours 9 a.m.-4 p.m.

What: Women In Trucking Association's 3rd annual, "Salute to the Women Behind the Wheel"
When: Noon
Where: Rooms C201-C205 in the upper level of the south wing
This event recognizes the safety and performance accomplishments of the nation's professional female drivers. There will be music, refreshments, prizes, goodie bags and a photo of all women drivers for the world record books. You can register at the show at the WIT booth in the North Wing Lobby or online at salute2women.com.

What:Rachele Lynae- Live performance & autograph session
When: Times to be announced
Where: Red Eye Radio booth, South Wing Lobby A and Western Star booth

Seminars:

9 a.m. Roadside Inspections, Officer Jamie Medley, KSP Commercial Vehicle Enforcement
10 a.m. Save Fuel, Money and the Environment, U.S. EPA SmartWay Transportation Partnership
11 a.m. FMCSA Regulation Changes for 2012, Jerry Ogle, Marvin Johnson & Associates
Noon Simulator-based Driver Training, Mike Reardon, Virage Simulation
1 p.m. Ride Quality: It's More Than Just Driver Comfort-It Can Affect Your Bottom Line, Jim Parison, Bose Ride Team
2 p.m. Stay Legal, Stay Profitable, John Ewing & Bruce Martin, Truckers Helper

All seminars will take place in the South Wing Conference Center Room B-104. Seminars are free and do not require registration.

Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz

Friday, March 16, 2012

3M, Chesapeake Energy Partner to Create CNG Tank Technology

3M, Chesapeake Energy Partner to Create CNG Tank Technology

3M and Chesapeake Energy Corp. will collaborate in designing, manufacturing and marketing a broad portfolio of compressed natural gas tanks for use in all sectors of the U.S. transportation market, starting with commercial vehicles.

3M's CNG tank solution combines the company's proprietary liner advancements, thermoplastic materials, barrier films and coatings, and damage-resistant films to transform the pressure vessel industry. Using nanoparticle-enhanced resin technology, 3M Matrix Resin for Pressure Vessels, 3M will create CNG tanks that are 10% to 20% lighter with 10% to 20% greater capacity, all at a lower cost than standard vessels.

The new CNG tanks developed through the 3M and Chesapeake partnership will reduce costs while increasing performance. Less expensive tanks will enable greater market adoption of CNG as an alternative automotive fuel source.

"This partnership brings together two leading companies from different sectors, both committed to advancing the natural gas transportation fuel market," says Aubrey K. McClendon, Chesapeake's CEO. "We applaud 3M for recognizing the future of natural gas as a low-cost, cleaner alternative to gasoline, and for creating innovative tank technology that will make natural gas vehicles more affordable and accessible to fleets and individual consumers nationwide."

Chesapeake has pledged an initial $10 million toward design and certification services, market development support and a commitment to use the new tanks for its corporate fleet conversion to CNG. The company's investment will be provided by Chesapeake NG Ventures Corp., established in 2011 to identify and invest in companies and technologies that will replace the use of gasoline and diesel derived primarily from foreign oil.

CNGV has committed $1 billion over the next 10 years to help fund various initiatives to increase demand for natural gas, including investments totaling $300 million in Clean Energy Fuels Corp. and privately-held Sundrop Fuels, Inc.

3M has engaged Hypercomp Engineering, Inc. of Utah for the design and certification of tanks. 3M will manufacture the tanks and focus its capital on all future operations and production. 3M expects the tanks to be available for sale during the fourth quarter of 2012.

Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz

Diesel and Gas Prices Rise, Worries About Greece and Iran Drive up Oil Prices-Source HDT

Diesel and Gas Prices Rise, Worries About Greece and Iran Drive up Oil Prices

The average U.S. diesel price is up by 1.7 cents this week to an 11-week high of $3.96 per gallon from $3.943 last week, reports the U.S. Energy Information Administration in its weekly fuel update, and crude oil prices are the highest in in nine months.

Prices rose in every U.S. region except the Midwest, which saw an average decrease of just less than a cent. Prices increased the most in California, which saw an almost 5-cent rise per gallon. This is the fourth straight week diesel prices have risen. The national average price is currently 10.8% or 38.7 cents higher than at this time last year.

Gas prices increased as well by almost 7 cents to $3.591 per gallon from $3.523. Prices increased in every region, and the West Coast saw the biggest spike at almost 17 cents, more than double the increase for any other region.

Crude oil for March delivery gained $2.60 to reach $105.84 a barrel on the New York Mercantile Exchange. This is the highest settlement since May 4 of last year. Futures rose 2.5% after a $173 billion bailout for Greece.

Also affecting prices is Iran's decision to stop selling crude oil to France and Britain. This comes after the European Union made the decision to ban crude imports from Iran starting July 1 to pressure the country over its nuclear program.

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EPA Fines Dover Chemical $1.4 Million-Source Chemical Processing

The U.S. Environmental Protection Agency (EPA) recently announced that Dover Chemical Corporation has agreed to pay a $1.4-million civil penalty for alleged violations of Toxic Substances Control Act (TSCA) premanufacture notice (PMN) obligations for the production of various short-chain chlorinated paraffins (SCCP). This column explains why this enforcement action is noteworthy.

“Enforcement actions can result in potentially catastrophic consequences for business interests.”

Under TSCA, chemical substances not listed on the TSCA Inventory are classified as “new” and prior to their manufacture or import for commercial use, a notice must be filed with EPA under TSCA Section 5. If EPA determines a chemical is being produced or distributed illegally, there are potentially catastrophic consequences for business interests. EPA is authorized to enjoin further production and initiate enforcement action, measures that disrupt a chemical producer and its downstream purchasers.

Momentous Move
EPA’s action against Dover Chemical is significant for three reasons. First, EPA brought the action based on its belief that certain SCCPs manufactured by Dover Chemical are “new” and, because they are not listed on the TSCA Inventory, the company violated TSCA.

Some would characterize EPA’s interpretation of the scope of TSCA Inventory listings as new. The revised interpretation goes something like this: Many TSCA Inventory listings of polychlorinated alkanes (a term EPA uses that is interchangeable with paraffins) and mixtures contain polychlorinated alkanes. A common chemical substance description for chlorinated paraffins, certainly in 2009 when the enforcement action was filed, was “alkanes, chloro,” CAS # 61788-76-9, which is listed on the TSCA Inventory. EPA describes it as a mixture that may contain polychlorinated alkanes, but doesn’t specify any particular chain length. This appears to encompass all ranges of carbon atoms and all degrees of chlorination. Many other alkanes assigned CAS numbers and listed on the TSCA Inventory are more precise in terms of carbon chain length/fraction.
EPA believes that a broad listing of “alkanes, chloro” doesn’t sufficiently describe a chemical substance for TSCA purposes if the manufacturer knew or should have known that a more-specific chemical description would better reflect the chemical identity of the substance. However, entities have been describing their polychlorinated alkane substances using the broad “alkanes, chloro” CAS number for decades, believing such a description was adequate. EPA’s more recent focus on more chemical particularity likely comes as a surprise to many.
Second, this case tells us EPA is using various databases to assess compliance. EPA can, for example, compare information submitted under TSCA’s Chemical Data Reporting (CDR) rule, Section 313 Toxics Release Inventory (TRI) Form R submissions, and other reports submitted pursuant to other programs and determine if chemical substances are being reported inconsistently.
Finally, the investigation indicates that EPA may begin using its TSCA Section 11(c) administrative subpoena authority more routinely. Historically, EPA has used this authority sparingly. TSCA subpoenas could well be used regularly to obtain information.
Prepare to be More Precise
Companies should pay attention to how the chemical substances they manufacture and import are identified in terms of specific TSCA nomenclature and TSCA Inventory conventions. The enforcement action reflects recent shifts in EPA’s thinking regarding its interpretation of the TSCA Inventory, chemical naming conventions, and the level of particularity EPA expects in TSCA Inventory chemical listings. These actions indicate that EPA is looking closely at how chemical substances are identified for Inventory purposes and is enforcing its view that chemical manufacturers (including importers) must ensure that commercial chemical substances are identified as precisely as possible for TSCA Inventory listing purposes.
Companies should also expect EPA to rely more regularly upon administrative subpoenas. A timely response to such a subpoena is essential.
Finally, with no near-term TSCA legislative reform prospects on the horizon, chemical stakeholders should expect EPA to continue to use its TSCA authority to address perceived chemical exposure risks. Expect EPA to be more creative and ambitious in its use of the TSCA authorities.

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Movement but Not Much Progress on Highway Bill - Source HDT

Movement but Not Much Progress on Highway Bill
By Oliver B. Patton, Washington Editor

As the Senate lumbers through debate on its highway bill, and the House considers changes to its approach, the outcome may be a short-term surface transportation program that preserves funding near current levels.

That is, if Congress can close the deal at all. The chambers have less than a month to finish work on their own bills and reconcile their differences - which are likely to be considerable - to produce a final measure that President Obama can sign.

The alternative will be to extend the program as is, for the ninth time. In one scenario, the extension could be short, to give legislators time to complete work on a bill that's nearly finished. But if agreement on a final bill cannot be found, another scenario has the extension pushing the issue to the back of the table until after the presidential election.

The Senate is perhaps further along with its two-year, $109 billion measure but still must come to terms on a host of amendments, many of which are not germane.

The Senate's work on the highway bill this week centered on debate over an amendment offered by Sen. Roy Blunt, R-Mo., to give employers who have moral objections to birth control an exemption from insurance requirements in the health care law. The measure failed in a close vote largely along party lines.

The Senate is scheduled to address the funding portion of its bill next week. Details are not settled but in general the Senate proposes to pay for its bill with a mixed package of funding transfers and revenue offsets.

The House, facing opposition not only from the Democratic minority and President Obama but from some of its Republican members as well, was considering a scaled-back version of its original five-year, $260 billion proposal.

News accounts reported that a term more in line with the Senate bill, perhaps 18 months, was under consideration, but on Thursday morning House Speaker John Boehner was reported saying that would only be a fallback measure and the focus still is on a five-year bill.

Rep. John Mica, R-Fla., chairman of the Transportation and Infrastructure Committee and primary author of the House bill, said Tuesday that he couldn't say exactly what the House is going to do.

"I told (House Speaker John) Boehner that I want as long a term as possible in the bill," Mica told a gathering of state highway officials.

The House also is considering changes to a controversial provision that would change the way transit is funded.

Federal support for transit now comes from the Mass Transit Account in the Highway Trust Fund, funded by a portion of the federal fuel tax. The House had proposed to pay for transit by creating a new Alternative Transportation Account funded by a one-time transfer of $40 billion over five years from general revenues.

This approach ran into stiff opposition from Democrats and some urban Republicans.

"By breaking the link between highways and transit and funding from the Trust Fund, this legislation represents the balkanization of surface transportation programs and leaves public transportation without a dedicated revenue source," said Democratic members of the House T&I Committee in their commentary on the bill. "Transit programs will have to compete with every other discretionary priority funded by the General Fund of the Treasury."

Transportation Secretary Ray LaHood, also speaking to the state highway officials, seconded that concern.

"To hollow out the transit program makes absolutely no sense," he said.

Rep. Mica said that he is befuddled by such concerns. Transit wants to stay in the trust fund even though it does not contribute to the fund and the fund is shrinking as vehicles switch to alternative fuels, he told the highway officials.

"Transit has shafted themselves," he said. "It is regrettable that they have taken the stand they have taken."

Mica also warned that the pressure to pay for the highway program with available funds is not going go away.

"This Congress is going to have a means of paying for any expenditures," he said. "Anyone who thinks it's going to get better after this next election, you're smoking funny weed because it's not going to happen."

The administration, for its part, supports the Senate's two-year approach.

"We like the Senate bill," LaHood said, noting the bipartisan cooperation of Sen. Barbara Boxer, D-Calif., and Sen. James Inhofe, R-Okla., in the drafting of the bill.

"We should take politics out of transportation. This idea that because we don't have earmarks we can't pass a bill is baloney." The bill will create "pots of money" that states can compete for, he said, referencing DOT's grant program, Transportation Investment Generating Economic Recovery (TIGER).

"Hopefully the Senate bill will pass," LaHood said. "We don't know what the House is going to do."

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CV Parts Aftermarket Leading Indicator Increases in January - Source HDT's

CV Parts Aftermarket Leading Indicator Increases in January

A new industry index that tracks aftermarket parts rose slightly in January. Commercial Motor Vehicle Consulting's new CV Aftermarket Parts Leading Indicator increased 0.03% in January to 104.70 (January 2001=100) following a 0.01% decrease in December (104.67) and a 0.61% increase in November (104.68).

The upward slope in the indicator has flattened out over the past few months.

PLI is signaling the growth rate of commercial vehicle parts aftermarket sales will decelerate in the near term, says Commercial Motor Vehicle Consulting. Aftermarket sales will continue to expand, but the rate of growth is decelerating in comparison to growth rates in 2011.

The component series that make up the composite index, PLI, continue to improve, signaling higher CV parts aftermarket sales, but the rates at which these component series are improving are moderating. The commercial vehicle population continues to operate at high utilization rates, implying truck depreciation will continue to stimulate parts consumption.

Industrial production, a measurement of freight growth, is expanding, so fleet capacity utilization will remain at high levels in the near future, say CMVC analysts. The Dow Jones Transportation Index and For-Hire Trucking Producer Price Index imply expectations of higher profits for the trucking industry, so rising diesel fuel prices in the near term should not alter truck operators' preventive maintenance programs.

Commercial Motor Vehicle Consulting developed the commercial vehicle Parts Aftermarket Leading Indicator using parts aftermarket sales from a commercial vehicle supplier with a product line that expands across several component groups.

PLI was designed to be a short-term forecasting indicator of U.S. commercial vehicle parts aftermarket sales by signaling peaks/troughs and inflection/turning points in parts sales due to changes in fleets' business environments as a result of cyclical change in the business cycle - expansion, recession and recovery.

PLI does not measure changes in trend factors, such as vehicle demographics, that have a medium and/or long-term influence on parts aftermarket sales, because changes in trend factor variables lag the fluctuation and turning points in parts sales related to changes in the business cycle when cyclical factors overwhelm trend factors. Trend factor variables are not good predictors of changes in parts aftermarket sales related to changes in fleets' business environments.

A composite index was constructed to signal fluctuations in CV parts aftermarket sales, because the contribution of one data series over time differs from parts sales, so a composite index comprised of multiple data series is a better predictor of fluctuations/turning points in parts sales as the composite index gains better predictive powers from diversification.

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Wednesday, March 14, 2012

Chinese Diplomat Sees Airlines Turning to Boeing Over EU Tax -Source Agence France-Presse

Chinese Diplomat Sees Airlines Turning to Boeing Over EU Tax

The European Union has imposed a carbon tax on airlines that will help the 27-nation bloc achieve to cut carbon emissions by 20% by 2020, but China, Russia and the United States say tax violates international law.

By . Agence France-Presse

March 12, 2012

A senior Chinese diplomat said it "makes sense" for Chinese airlines to shun aircraft made in Europe, owing to an EU tax on aircraft emissions, the Wall Street Journal reported on March 12.

The newspaper reported that the new Chinese ambassador to the European Union in Brussels Wu Hailong said that a decision by the European Union to make non-European airlines subject to the tax "contributed to the current dilemma."

The EADS aerospace group which controls the European aircraft maker Airbus said last week that "Airbus is subjected to retaliation measures" and that "the Chinese government rejects (refuses) to approve airlines' orders for long range airplanes."

The main competitor to Airbus, which has important interests in the Chinese market, is Boeing.

The European Union has imposed a carbon tax on airlines with effect from January 1, but no carrier will face a bill until 2013 after this year's carbon emissions have been calculated. The EU has said the emissions tax will help the 27-nation bloc achieve its goal of cutting carbon emissions by 20% by 2020 and that it will not back down on the plan.

But more than two dozen countries, including China, Russia and the United States, have opposed the EU move, saying it violates international law.

The newspaper quoted Wu as saying that when a Chinese airline was included in the emission tax scheme "it makes sense for them to go to Boeing."

He said: "The issue is too big to be decided by the EU alone."

WoodMac: US Downstream on Track to Become Key Export Center- Source Wood Mackenzie Press Release

WoodMac: US Downstream on Track to Become Key Export Center

by Wood Mackenzie Press Release

March 13, 2012

"Wood Mackenzie projects the US to be a growing net exporter of oil products and so transformed to a regional export centre now through the next decade," according to Alan Gelder, Head of Oils Research for Wood Mackenzie, speaking Monday at the American Fuel and Petrochemical Manufacturers (AFPM) Annual Meeting in San Diego. "This is based on our outlook for the development of US domestic tight oil supplies, the strong competitive position of US Gulf Coast refining and a supportive global environment."

Wood Mackenzie's analysis emphasizes that after decades as a net importer, US oil product trade moved to a net surplus during 2011. "The position of the US as a net exporter of oil products has arisen during a time in which demand has dropped by almost 1.9 million bpd from its peak in 2005, with 2011 demand being approximately 150 kbd below 2010 levels," explained Gelder.

Strong supply growth from key tight oil plays in the US, evidenced by the structural shift in the Brent -- WTI differential is supporting the emergence of the US as a growing net exporter of oil products, according to Wood Mackenzie.

"Supply of oil products grew significantly in both 2010 and 2011, due to the benefits of a growing supply of tight oil in the US, which was priced at a significant discount to international markets," noted Gelder. "The Brent - WTI differential blew out during 2011 due to a number of factors, but the lack of southbound pipeline infrastructure from Cushing to the US Gulf Coast refineries was significant."

Gelder's technical paper affirmed that the transformation of the US to a sustainable export centre reflected a weak demand outlook, high refinery utilization due to advantaged feedstock and supportive external market opportunities. Wood Mackenzie projects that US gasoline demand will be one of a sustained gradual decline for refinery supplied gasoline, due to factors such as weak GDP, slowing growth in vehicle miles travelled, and legislation that is improving the fuel efficiency of the vehicle fleet and growing impact of renewables. A declining demand growth hence supports increased exports, all other things being equal.

This potential growth in exports from the US is supported by market developments in other regions, such as Europe, in which Wood Mackenzie sees 1.3 million bpd of refinery capacity at risk of permanent closure. In the medium term, the net trade positions of other regions within the Atlantic Basin will be supportive to US exports, with Latin America remaining deficit diesel and Sub Saharan African deficits of transportation fuels. "Post 2015 however, the development of facilities such as Brazil's export refineries, are likely to result in Latin America becoming a stronger competitor to the US Gulf Coast refineries in global markets," explained Gelder. "This shift in Latin American balances suggests that US export refiners need to consider their options to secure volume offtake over the coming years."

"The effects of this changing landscape are projected to be far from uniform across the US refining sector and its supporting industry," noted Gelder. "As a generalization, midstream pipeline and logistics players are well placed to win in this outlook, due to the plethora of emerging structural imbalances in the US that support ongoing investment in the sector." To be successful, however, players will have to navigate increasingly complex political and regulatory hurdles to logistics infrastructure development.

Gelder concluded, "There are, of course, various uncertainties around GDP growth, international oil prices and the pace of pipeline developments, but the recent strong growth in tight oil supplies suggests upside potential to US domestic crude production which will sustain the US refining industry as a net exporter of oil products to international markets for many years to come."

US Chem Sector Must Deal with Enviros to Get TSCA Reform-Source Chemical News

US Chem Sector Must Deal with Enviros to Get TSCA Reform

by Chemical News & Intelligence

March 13, 2012

BALTIMORE, Maryland (ICIS)--US chemicals trade groups will have to negotiate with environmentalists and Democrats in Congress to reach consensus on realistic reform of fundamental chemicals control regulations, a leading industry official said on Monday.

Ernie Rosenberg, president of the American Cleaning Institute ([1]ACI), said that producers will have to engage with and enlist support of at least some environmental groups and congressional Democrats to effect reform and modernisation of the Toxic Substances Control Act ([2]TSCA) in 2013.

The 36-year-old TSCA is the principal US statute governing control of chemicals in commerce.

It has not been substantially altered since it was enacted in 1976, and environmentalists, [3]chemicals industry officials, downstream chemicals consumer industries and state regulators all want to see it brought up to date.

Noting that no one expects the current US Congress to make any substantive progress toward reform of TSCA during this election year, Rosenberg said that industry leaders have to engage environmental groups and congressional Democrats in the months ahead to agree on the basic tenets of TSCA reform to get a bill through Congress in 2013-2014.

"Unless we can get at least some Democrats and some NGOs [non-governmental organisations] to agree to a version of TSCA reform, it will not be credible and we won't be able to get it through Congress," Rosenberg said. Non-governmental organisations include environmental groups and stakeholders other than office-holders.

Speaking on the sidelines of the annual [4]GlobalChem regulatory conference, Rosenberg said that if Republicans retain control of the US House of Representatives and win a majority in the Senate in the coming November elections, there is a better chance of getting TSCA reform through Congress.

"If the leaders of both chambers are comfortable with a TSCA reform bill, then we can probably move something through Congress," Rosenberg said.

He said that the current Democrat majority in the Senate has advanced an [5]extreme TSCA make-over that is a [6]non-starter with industry, and leaders in the Republican-controlled House "are not convinced that we need a new regulatory programme" in place of TSCA, especially when their emphasis is on reducing the size of government and cutting regulations.

House Republican leaders, he said, also are wary of passing a TSCA reform bill that could then be radically altered by the Democrat-controlled Senate, making House Republicans vulnerable to a charge of "anti-environment" if they reject the Senate version.

However, he said, the industry very much wants a reform of TSCA that will produce "a credible federal chemicals controls programme" that will encourage innovation and pre-empt or at least preclude multiple, duplicative and conflicting state-level regulatory approaches.

"Unless we get Democrats and NGOs to agree to a version of TSCA reform, it won't be credible and it will not get through Congress," Rosenberg said.

Cosponsored by the American Chemistry Council ([7]ACC) and the Society of Chemical Manufacturers and Affiliates ([8]SOCMA), the GlobalChem conference began on Monday and runs through Wednesday.

The ACI represents chemical companies and downstream manufacturers of household, industrial and institutional cleaning products.

References

1. http://www.cleaninginstitute.org// 2. http://www.epa.gov/Compliance/civil/tsca/ 3. file://localhost/home/cni/cnistories/Articles/2009/02/26/9196178/US-chemicals-back-reform-but-warn-against-REACH.html 4. http://www.globalchem.org/ 5. http://lautenberg.senate.gov/assets/SafeChem.pdf 6. file://localhost/home/cni/cnistories/Articles/2011/11/17/9509434/US-chemical-industry-officials-slam-TSCA-reform-bill.html 7. http://www.americanchemistry.com/ 8. http://www.socma.com/

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