A.M. Executive Briefing - July 24
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Govt. Reports This Week Seen Confirming Cooler Economy
Economists expect several government reports this week to confirm what many in the trucking industry have already seen, a slowdown in the growth pace of economic activity.A survey of economists by Bloomberg News shows they expect cooler numbers to be reported for June home resales, new orders for durable goods from factories, the second-quarter employment cost index, plus both the gross domestic product and GDP price deflator for the second quarter.
While that slowdown is pinching some carriers, the good news is that such reports will help make the case that the Federal Reserve Board does not need to raise interest rates again any time soon, as the economy no longer appears in danger of overheating to spur inflation. Transport Topics
Providence Capital Calls Meeting to Probe Navistar's Options
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"A broad cross-section of Navistar's largest institutional shareholders have accepted invitations to attend," Providence Capital's announcement said.
Providence President Herbert A. Denton said that "our mid-case estimate of Navistar's intrinsic value is $87 per share, or a 170% premium to recent trading levels."
Noting that DaimlerChrysler's pending acquisitions of Detroit Diesel and Western Star has shown how larger manufacturers are consolidating the truck and diesel engine industries, he added that "accordingly, we plan to discuss a wide range of strategic alternatives currently open to Navistar's board." Transport Topics
Oil Prices Drop, May Soon Be At Target Price
Oil prices may soon come down from the highs they hit this summer and be at the $25 per barrel target of Saudi Arabia and the United States, Reuters said Monday.London Brent prices went up 2 cents and U.S. light crude 1 cent Monday morning after slip-ping last week, the report said. Brent went down $2.35 last week.
Tanker brokers also said Saudi Arabia had begun exporting more oil, confirming reports of increased chartering from that area, according to Reuters. Other OPEC members may soon follow Saudi Arabia in producing more oil per day. Transport Topics
Sony Tabs Redwood Systems For Mexican Logistics and Distribution
Sony Corp. announced Monday it has enlisted Redwood Systems, a subsidiary of Consolidated Freightways Corp., to handle its transportation logistics and distribution in Mexico.The three-year contract calls for Redwood to handle distribution of Sony electronics from its center in Guadalajara, Mexico. A direct data link will be set up between the Guadalajara center and Sony headquarters. Transport Topics
Billion-Dollar S.C. Shipping Terminal May Mean $800 Million In Highway Costs
Opponents of the proposed Global Gateway shipping terminal in Charleston, S.C., say the $1.2 billion project will end up costing an additional $800 million for related highway improvements.The Associated Press reported Sunday that the group South Carolina - More Than A Port estimates the Global Gateway will bring 27,000 more vehicles per day into the area, causing widespread gridlock on highways from Charleston to Columbia. The $800 million figure comes from estimated costs of widening highways to accommodate increased traffic, the article said.
Officials from the State Ports Authority told AP the $800 million estimate is "very excessive," as the highways will eventually need renovation due to normal growth of the area. Transport Topics
Ill. Subdivision Residents Not Happy to See Road Grow
Residents of a West Chicago, Ill., subdivision called Prairie Meadows have expressed concern over proposed construction to a nearby road that will increase truck traffic in the area, the Daily Herald (Arlington Heights) recently reported.The subdivision did not exist when the proposal was put through 10 years ago, so there was no opposition to it, the article said. With the growth of Prairie Meadows, residents now expressed their worries over noise and danger to children if more trucks pass by on Prairie Crossing Road.
The road is being made into a frontage road, which trucks will use to get to the nearby Rollins Truck Rental center. Residents of Prairie Meadows currently use prairie Crossing Road, while trucks use another road to get to Rollins. The proposed construction will turn the road into a forked drive, with one fork for the subdivision and one for trucks to use to get to Rollins. Also, the road will have a 25-mph speed limit and may add light barriers and road guards, the article said. Transport Topics
Professional Ground Transportation Hires Investor Relations Firm
Ground transportation and logistics firm Professional Transportation Group Ltd. announced Monday that Los Angeles-based Metropolitan Capital Partners, Inc. will handle its investor relations."With the recent developments at Professional Transportation Group, MCP should be in a strong position to pursue their commitment to enhancing shareholder value through extensive exposure to the financial community," said Dennis A. Bakal, president and CEO of Professional Transportation.
In June Professional Transportation announced its merger with U.S. Trucking, a Charleston, S.C.-based long-haul trucking company. In other recent developments, last week Susan Dial, chief financial officer for Professional Transportation, resigned. The company named William Asbell Jr., the vice president and general council, as interim CFO. Transport Topics
Truck Driver in Fatal Calif. Crash Had License Suspended in Calif. Four Years Ago
Truck driver Larry Milliron, who pleaded not guilty to misdemeanor vehicular manslaughter Friday in an Alameda County courthouse, had his California driver's license suspended four years ago, the Knight Ridder/Tribune News Service reported.Milliron, who does have a valid Wyoming license, rear-ended a 1997 Volkswagon Jetta July 19 on Interstate 580, killing the Jetta's backseat passenger, Christine Watts, who was pregnant. Police said a breath and blood test and inspections of Milliron's vehicle and driver's log revealed no problems.
The court said Milliron's California license had been suspended four years ago after he twice failed to appear in court on minor violations. His attorney said Milliron never knew of the California suspension, and has an accident-free record in 30 years of driving, the article said. Transport Topics
