A.M. Executive Briefing - June 15
This Morning's Headlines:
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Higher Fuel Prices Driving Up Consumer Costs
Consumers in the Dubuque, Iowa, area are being hit with higher costs from many companies whose fuel costs have been driven up by the rise in crude oil prices, and trucking companies are feeling the effect as well. According to Loras Pape, president of Art Pape Transfer, fuel costs for his company were over $500,000 more than in 1999.The trend is also driving up costs for customers of companies that use gasoline, such as cab companies, florists that deliver, and pizzerias.
Bolt Manufacturer Looks to Jump Into Logistics Business
Winona, Minn.-based industrial-goods seller Fastenal was one of several area industrial companies participating in U.S. Bancorp Piper Jaffray's recent investment conference in Minneapolis. Fastenal, whose products include nuts, bolts, and other items, believes that there are great opportunities to be had in transportation logistics, which currently represents a $200 billion market.According to Chief Operating Officer Will Oberton, Fastenal could get into that market by using the company's in-house distribution system. This is because, unlike many of its commercial rivals, Fastenal has a large trucking division that allows the company to ship its goods at a much lower cost than parcel carriers would charge. St. Paul Pioneer Press (06/15/00); Maler, Kevin
Signs of a Slowdown Emerge Among Strong Shipping Volume
While trucks and other modes of transport are still carrying large quantities of goods, slower box sales and other signs indicate that shipping is starting to slow down.The Fibre Box Association says cardboard box and corrugated-paper sales – a leading indicator of manufacturers' plans for the near term – have hardly changed so far this year. Morgan Keegan transportation analyst Art Hatfield believes that this is an indication that "the economy is softening a little bit."
In addition, Hatfield says, railroads appear to be taking some volume away from trucking, while air-cargo volumes are slowing for some carriers as well. Atlanta Journal-Constitution (06/15/00) P. 3F; Grantham, Russell
Port of Savannah Grabs Business Away From Charleston
Trucking, stevedores, tugboats, and steamship agencies in Savannah, Ga., will begin to see millions more dollars flowing through their businesses now that the city has scored a double victory over Charleston, S.C., in the longtime battle for ports primacy.Maersk Sealand and Evergreen Marine, two gigantic worldwide shippers, have both chosen Savannah over Charleston to base operations for service to Asia, meaning 52 more calls a year on the Georgia port by huge container ships. David Schaller, deputy director of the Georgia Ports Authority, called the announcements a coup for the city of Savannah. Atlanta Journal-Constitution (06/15/00) P. 2F; Quinn, Matthew C.
High Fuel Costs Plague Maryland Truckers
Maryland truckers are struggling at the height of their busiest season as a result of booming fuel prices. The price of diesel fuel on the East Coast has jumped from about $1.04 a gallon to $1.42 a gallon locally, according to the Maryland Motor Truck Association.U.S. consumers are also dealing with exorbitant gasoline prices; the U.S. Department of Energy reported June 12 that the average national retail price for unleaded gasoline hit $1.61 a gallon, up 6.8 cents from last week and a new record high for the third consecutive week.
Help from Congress on all fronts is on the way, but the outlook for the future still appears rather grim. Daily Record (06/14/00) P. 1A; Bernstein, Amy L.
Pony Express Delivery Services Files for Bankruptcy
Skynet Holdings, Inc., an Atlanta-based provider of customized courier services, announced today that its Pony Express Delivery Services subsidiary has filed for Chapter 11 bankruptcy protection. The company said Pony Express has also suspended most operations, but will continue to operate in Florida.In a related development, Skynet also announced that two of its other subsidiaries – Fleet Acquisition Corp. and Pony Express unit Courier Express, Inc. – also filed for Chapter 11. Transport Topics staff
Compiled by Transport Topics staff and INFORMATION, INC. © 2000
