Winter Newsletter

WHAT'S NEWS IN INSURANCE?
This information comes from Wine Sergi & Co, LLC.

Hurricane Katrina will not disrupt market, insurers say. While property and casualty industry expects insured losses from Hurricane Katrina to reach a record high of $34.4 billion, the Property Casualty Insurers Association of America says insurers will weather the storm of more than 1.6 million claims spread out over six states without the market disruption that occurred following 1992's Hurricane Andrew.

According to the ISO Property Claim Services, Louisiana was hardest hit by the storm suffering $22.6 billions in insured losses and 900,000 claims. Mississippi's insured losses are expected to reach $9.8 billion with 490,000 claims. The insured losses for Alabama are estimated at $1.3 billion and 123,000 claims. These are record setting losses for Louisiana and Mississippi. These damage estimates do not include losses to utilities, agriculture, oil drilling platforms and property insured under the National Flood Insurance Program (NFIP). Initial property loss estimates for the NFIP are around $20 billion.

Private Fleets Fill Gaps Left By Tight For-Hire Market

Shipper-owned fleets account for nearly half of all truck freight in the United States and about one-in-three private carriers use for-hire authority to haul freight for private parties according to Gary Petty,president of the National Private Truck Council,Alexandria,Va.

For-hire truckload carriers typically experience between 16% and 20% empty miles with longhaul carriers typically having less empty capacity than shorthaul carriers because trailers are loaded and unloaded less frequently,trucking industry officials said.

Private carriers have,on average 17% to 19% unused freight-hauling capacity,according to Petty.Most of the excess capacity is a result of not having compatible freight to put on trailers after making store deliveries or after carrying shipments on an expedited basis to customers.

If the percentage is much higher then the dedicated contract carriage becomes a more viable option for the private fleets owner Petty states.

Now with driver shortages keeping a lid on expansion by for-hire carriers,private carriers are taking a look at adding equipment and soliciting freight from other shippers. At the NPTC conference Petty said three out of four members of the Commercial Heavy duty Division stated they would grow there fleets in the next three years.The shift is being driven in part by market conditions.A shortage of drivers has forced some for-hire carriers to limit fleet expansion and shift capacity from shorthaul to longhaul lanes.

The Society of Automotive Engineers said it scheduled about 50 technical sessions and a series of panel discussions--including one on meeting future diesel engine emission standards--as part of its Commercial Vehicle Engineering Congress and Exhibition this week in Chicago. SAE is a nonprofit educational and scientific organization with more than 84,000 members, including engineers, business executives, educators and students from about 100 countries.

During the Nov. 1-3 meeting, SAE said experts including officials with Cummins Inc. and Tenneco Automotive Inc. will appear on the engine emission panel that will address the challenges needed to achieve the near-zero particulate standards set to take effect in 2010.

Engine makers are expected to announce their various strategies within the next 12 to 24 months in order to have 2010 emissions solutions ready in time.

Another discussion will address idling reduction beyond the use of generators. That is of special interest to trucking because of high fuel prices and the growing number of states passing legislation aimed at reducing idling, the group said.

Another session will offer predictions on the types of maintenance that will be required on future vehicles and what role fleet managers will play in the management of vehicle maintenance functions.

SAE also said a session on advanced electronics will look into positioning, communication and human-machine interface technologies and their effect on future systems.

It also scheduled a series of three sessions allowing government and industry leaders to discuss technologies for reducing truck crashes.

One panel will look at the federal stopping-distance proposals for truck tractors, the foundation brake options for compliance and resource requirements for implementation.

A second panel will look at value-added technologies which would likely accompany any major product or platform upgrade, including anti-lock braking systems, SAE said. And the third segment will address the economic, technical and legal consequences of introducing new technologies.

SAE said another session would review the influence of tires on heavy-duty truck safety, efficiency and emissions.

Tire-generated splash and spray has been an ongoing safety concern of the general public as well as the heavy truck community for many years, SAE said. About 135 exhibitors are scheduled to display products ranging form commercial vehicles to the latest software.

Private Fleets Fill Gaps Left By Tight For-Hire Market