SAN ANTONIO TX (9/17/01) After the horrific terrorists
attacks both in New York City and Washington D.C., America
must begin the task of returning to normalcy. As President
Bush indicated this weekend, we must show terrorists that
they were unsuccessful in bringing America to its knees.
Those of us in the transportation industry now begin the
task of returning to work. Many of our clients have
indicated a concern about going forward with their trucking
operations. I call that "Sticking Your Head in the Sand".
Let's consider for a moment of our nation's surface
transportation infrastructure. We have air, pipeline, rail
and trucking. While looking at those modes of
transportation, let us also consider their respective
security constraints.
Air cargo, along with its passenger travel, will become
much more difficult in light of the new time it takes to
process, load and unload at air facilities. The newspapers
this weekend indicated one airline, Midway Airlines, has
already closed its doors. Continental Airlines began laying
off 13,.000 of its employees. United Airlines and American
Airlines followed suit by decreasing available flights by
20 percent. The new security requirements for air cargo is
being greatly increased. Also no air freight, at least for
the short-term, will fly on a passenger aircraft. The U.S.
Postal Service has also indicated no mail will fly on
passenger flights. Balance this with the fact that only
0.4% of freight, by weight, moved by air in 1999. Not very
much freight is it?
Pipeline, by its sheer number of miles of unprotected
pipe is vulnerable for attack. Some of this might begin
moving by truck. Some it however may move to water. Plus
pipeline transportation is much more specialized.
The largest mode that moves surface freight is rail.
From statistics in 1999, rail moved 40 % of the traffic by
weight. Senior rail officials this week have express
concern about vulnerabilities of tunnels, bridges and
concentration of their communication and dispatching
facility. They do not have the ability to provide security
to all this real estate. Plus you look at rail and its
funnel effect. Traffic is concentrated and much tonnage
moves on unsecured tracks. Shippers may well revisit the
truck mode and perhaps increase the tonnage on
it...especially high value commodities current moving by
rail. Does this mean that Trailer On Flat Car (TOFC) may
move back to all truck. Perhaps, at least some.
That leaves trucking. Trucks moved, by weight in 1999,
about 30% of the traffic. The potential exist that some
freight will switch from rail back to truck. Especially
expedited service to replaced that from the air sectors.
Because Aermica’s trucking is decentralized, an attack on
one will have little significant effect on the rest. That’s
is why America’s thousands of carriers will support the
continued growth of the US economy.
This morning, on LoadSource (tm), a computerized
trucking loading service, there were already 8,000 listed
as available. That flies in the face of a normal day, where
10,000 loads average (filtering out seasonal adjustments)
for the entire day are posted.
The Federal Motor Carrier Safety Administration, Section
of Licensing, this morning, indicated that there are no
plans to suspend the need for operating authority. Nor is
there any plans to reinstate emergency or temporary
authority. The only exception granted is for those carriers
that are directly supporting the disaster in
New York City and that is a very narrow
definition. Under the current environment, you are looking
to 30-45 days to get your operating authority. That waiting
time is pretty consistent.
Is now the time to start up a trucking operating? Well,
the supply of available loads is there. What about
equipment purchases? We have been told that with interest
rates so low and the glut of used equipment, you may never
see conditions better . With solid business knowledge, the
odds for success may have increased in this time of
tragedy.