The U.S. Postal Service selected trucking giant Consolidated Freightways to manage all of its nonmail LTL freight delivery in the continental U.S. The contract comes with options that allow the USPS to extend the partnership through February 2012, with a value of at least $9 million per year. The decision condenses the USPS LTL freight network from 20 national, regional, and local carriers to just one transportation provider.

Major LTL carrier Roadway is broadening its services to include air freight forwarding. Roadway Air was born out of a strategic agreement with Integres Global Logistics, a transportation and technology solutions provider in which Roadway invests in. Roadway officials said the company will focus on heavy freight with the business, at least 150 pounds, rather than mail or small parcels. The new deal will bump Roadway's fleet up to 3,000 planes with more than 12,000 daily flight departures and 40,000 truck trailers.

Trucking companies paid an average of 32% more for insurance in 2001 than the year before and are likely to pay even higher premiums in the future, according to an American Trucking Association (ATA) survey of 1,000 carriers. The ATA has established an Insurance Industry Task Force to study the issue. While the report doesn't address why insurance rates have risen so sharply, it provides evidence that premiums for both primary and umbrella coverage are escalating substantially.

The Surface Transportation Board (STB) is currently reviewing an unprecedented 11 railroad line construction proposals. The proposals vary in size, scope, and location, and involve both Class I and shortline railroads. The longest proposal is Dakota Minnesota & Eastern Railroad Corp.'s proposal to build approximately 280 miles of new line and rehabilitate 600 miles of its existing line to provide new rail access to the low-sulphur coal reserves in the Powder River Basin. These rail construction projects have been proposed to enable railroads to continue to provide safe and efficient freight transportation service by adding freight rail infrastructure.