A.M. Executive Briefing - June 30
Note: In observance of the Independence Day holiday, the A.M. and P.M. briefings will not run Tuesday, July 4. Only one briefing will be run Monday, July 3. The briefings will resume their normal schedule on Wednesday.
This Morning's Headlines:
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Smithway Motor Xpress Corp. Announces 500,000-Shr Buyback
Smithway Motor Xpress Corp. Announces 500,000-Shr Buyback Fort Dodge, Iowa-based Smithway Motor Xpress Corp. today said its board has approved the Company's first stock repurchase program, of up to 500,000 Class A common shares in open market or negotiated transactions. The repurchase program has no expiration date. Smithway is a truckload carrier that hauls diver-sified freight nationwide, concentrating primarily on the flatbed segment of the truckload market. Transport Topics staff
OTR Express Warns of Quarterly Loss on Fuel Cost, Slower Business
OTR Express announced that it expects to see a second-quarter net loss despite higher revenue than in the year-earlier quarter, attributing this to a slower freight market and continued high fuel costs. In addition, according to William P. Ward, the company's chairman, president and CEO, OTR is having to sell its 48-foot trailers because of the market's move toward 53-footers. OTR is tentatively planning to sell 100 of its 250 48-footers at a loss of $2,000 apiece then buy 150 53-footers. Business Wire (06/29/00)Tight Job Market is Bad Time for Companies in Union Disputes
With the Teamsters mostly victorious in its dispute with Associated Wholesale Grocers in Missouri and Kansas, companies are learning that the current tight labor market makes this a bad time to lock out unions and use replacement workers during a labor dispute.According to the union, early on in the dispute AWG was just barely able to find replacement workers for one-third of those locked out, even though the pay being offered was close to what the union workers were getting. The company eventually pulled in some more replacement workers, but AWG member stores still had a hard time replenishing the groceries on their shelves, adding to the reasons for customers to give their business to competing grocery stores during the dispute.
Although the union conceded to AWG on two work rules, the union was mostly victorious in the dispute and kept AWG from implementing the cost-slashing changes that the company desired. Wall Street Journal Online (06/30/00); Helliker, Kevin
FMCSA Safety Hotline Extends Hours
The Federal Motor Carrier Safety Administration's safety hotline, which enables drivers to report safety violations on a confidential basis, now operates around the clock every day except federal holidays. Forms for reporting violations can also be downloaded at www.fmcsa.dot.gov/factsfigs/formpubs.htm and mailed or faxed to the agency after being filled out. Owner Operator (06/00) Vol. 30, No. 5; P. 17Ontario Inquest Jury, Premier Differ on Photo Radar
Despite a recommendation Thursday from the coroner's jury investigating last year's 87-vehicle crash on Highway 401, the Ontario government has refused to reinstall photo radar camera in the province. The jury said the cameras, which are common in Alberta and British Columbia, would cut down the speeds on the highway and increase safety.According to Ontario Premier Mike Harris, however, photo radar does not deter drivers from engaging in bad driving practices other than speeding, such as driving too fast for conditions or aggressive driving. In 1995, Harris ended a one-year pilot project that used the photo radar. Vancouver Sun (06/30/00) P. A10
Truckers Being Tagged on Cincy's Ft. Washington Way
Every month in Cincinnati, approximately 500 truck drivers are cited for breaking the ban on trucks over 7 feet wide on Fort Washington Way. According to police Sgt. Rudy Gruenke, the prohibition became effective during summer 1998 – when reconstruction on Fort Washington Way began – and over 4,000 tickets have been hand out since then.According to Bob Honebrink, a dispatcher for local trucking company S & S Delivery, it is annoying for drivers to have to use side roads to avoid Fort Washington Way, because this causes delays. Cincinnati Enquirer Online (06/30/00); Gottfried, Mara H.
Truck Freight Slotting Poses Risk to Produce Farm
Scottsdale, Ariz.-based Martori Farms says it may have a hard time surviving in the long term due to the difficulty it is having with shipping its products to retailers. Martori's Paul Fleming says the company is "interested in developing relationships with transportation entities."The company is trying to make the timing of pickups and deliveries better by improving both shipping and receiving, but it still has some trouble in this area. Although using pallets through pallet-exchange programs usually speeds up loading and unloading and keeps the docks from getting cluttered, sometimes stores are unable to accommodate the tall stacks of pallets that show up. This means lumpers and drivers have to move cartons so the stack is not too high.
Another problem is that returnable plastic containers sometimes experience airflow that makes the produce dry, or the produce will become flattened out in transit. In addition, rejected loads of returnable plastic containers sometimes means the driver ends up having to haul the empty containers or pallets around afterward. Owner Operator (06/00) Vol. 30, No. 5; P. 24; Martin, Bill
Compiled by Transport Topics staff and INFORMATION, INC. © 2000
