Executive Briefing - April 4
- BNSF Takes Actions to Cope With Slowdown
- Competitors Petition Justice on FedEx-USPS Deal
- Daimler Aims at Asian Trucks in Mitsubishi Play
- U.S. Postal Service May End Saturday Delivery
- Rutter to be Nominated as Railroad Head
- Crude Oil Rises More Than 2%
- TransCom Plans Turnaround Course
- USDA Bans Imports of Used Farm Equipment
- Levin Nominated as N.Y.-N.J. Port Authority Head
- CF to Open Terminals in Arizona, Texas
- Traffic.com, Emmis Reach Deal
BNSF Takes Actions to Cope with Soft Economy
ailroad company Burlington Northern Santa Fe (BNI) said Wednesday that it will eliminate $100 million in capital spending and other projects to cope with the slowing economy.
The company blamed "the continuing softness in the U.S. economy that is resulting in a flat year-over-year freight revenue outlook."
That assessment by one of the largest U.S. also underscores the weakness in freight demand that is plaguing truckers, who share many of the same customers.
(Click here for full press release.)
Competitors Petition Justice on FedEx-USPS Deal
Competitors including Emery World Airlines said the Justice Department is not moving fast enough to determine if the deal between FedEx (FDX) and the U.S. Postal Service violates antitrust laws, the Associated Press reported.Four cargo airlines and about a dozen aviation-service companies have sent a petition to the Justice Dept. urging an inquiry of the $6 billion alliance.
Emery, which is owned by CNF Inc. (CNF), had filed suit claiming the contract was illegal, but a judge ruled against the company.
A Justice Dept. spokesman said the deal was being examined.
FedEx is ranked number No. 2 and CNF is ranked number No. 3 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
Daimler Aims at Asian Trucks in Mitsubishi Play
DaimlerChrysler’s move to boost its ownership stake in Mitsubishi Motors -- by buying Volvo AB’s interest -- would position the company for a big role in Mitsubishi’s truck operations, the Wall Street Journal observes.
DaimlerChrysler (DCX) already owns Freightliner, the giant of North American commercial truck builders. The Journal said Wednesday that the deal to add Volvo’s share of Mitsubishi to Daimler’s 34% might be completed next week.
Before the deal emerged for Volvo (VOLVY) to sell its stake, Mitsubishi and Volvo had planned to jointly run the commercial vehicle (truck and bus) operations of the ailing Japanese vehicle maker.
The Journal said the purchase could trigger other moves in Asia’s truck manufacturing, such as Volvo perhaps teaming with Nissan Diesel since Renault SA owns part of each. Transport Topics
U.S. Postal Service May End Saturday Delivery
The U.S. Postal Service may end Saturday delivery service, news sources reported. It is also considering shutting down some plants and offices.
If Saturday service ends, delivery companies such as the United Parcel Service (UPS) and FedEx (FDX) would see a boost in service. The Postal Service has already lost substantial business due to competition and the Internet, the Associated Press noted.
The Postal Service does not receive tax money, but must operate under laws set by Congress since it is a government agency.
At a Congressional hearing Wednesday, Postmaster General William Henderson said the post office needs more flexibility in setting rates and other operational matters. He added that the agency needs a major overhaul to avoid threats to the universal mail service Americans expect.
During the last fiscal year, the Postal Service suffered a $199 million loss. Transport Topics
Rutter to be Nominated as Railroad Head
President Bush will nominate Allan Rutter to head the Federal Railroad Administration, Reuters reported.The railroad administration is part of the Transportation Department and oversees freight and passenger rail safety.
Rutter, who must be confirmed by the Senate, is currently the transportation policy director in the Texas governor's office, where he served under Bush while he was governor.
He would succeed Jolene Molitoris, who was appointed by President Clinton in 1993. Transport Topics
Crude Oil Prices Rise More Than 2%
Crude oil prices rose more than 2% Wednesday, in response to several U.S. refineries slowing production last week for maintenance purposes, Reuters reported.This has raised fear among traders that the supply for the North American summer driving season would not arrive on time.
Brent crude oil rose 58 cents in London to a five-day high of $25.35 per barrel. In New York, light sweet crude jumped 59 cents to a four-day high of $26.78 per barrel.
The summer driving season begins the weekend of the U.S. Memorial Day holiday. However, with only 70% of U.S. refineries in use last week, analysts worried the oil supply will get delayed amid a weakening economy and high fuel prices, Bloomberg said. Transport Topics
TransCom Plans Turnaround Course
Transportation Components (TUI), which supplies replacement parts for trucks, said that it has adopted a turnaround course to improve its financial standing.In fiscal year 2000, the company suffered an estimated net loss of $6.5-$7.5 million, compared with an income of $4.2 million the year before.
Severance expenses and higher energy costs for customers are reasons the company is expecting a larger loss.
TransCom has hired Bridge Associates to handle the turnaround plans. Transport Topics
(Click here for full press release.)
USDA Bans Imports of Used Farm Equipment
The U.S. Department of Agriculture's Animal and Plant Health Inspection Service has temporarily banned imports of used farm equipment from regions affected by the outbreak of foot-and-mouth disease, the Journal of Commerce reported.This can hurt flatbed trucking, which is used to haul large equipment from ports once they arrive in North America, or from interior railheads to final destination.
Prohibited equipment includes tractors and animal slaughter machinery.
The report said any equipment loaded after March 30 will be denied entry, while shipments en route as of March 29 will be admitted only after they have been inspected and disinfected.
Many of the same restrictions have been imposed at Canadian ports. Transport Topics
Levin Nominated as N.Y.-N.J. Port Authority Head
Neil Levin, superintendent of the New York Insurance Department, has been nominated as the executive director of the Port Authority of New York and New Jersey, the Journal of Commerce reported Wednesday.If confirmed, Levin would oversee New York City’s regional marine terminals, airports, bridges and tunnels. The Port Authority is expected to vote on his nomination on Thursday.
Levin was previously an investment banker with Goldman Sachs. Transport Topics
CF to Open Terminals in Arizona, Texas
Less-than-truckload carrier Consolidated Freightways (CFWY) said that it will open two new terminals this month to serve the growing U.S.-Mexico trading market. They are located in Laredo, Texas, and Phoenix, Ariz.
The Laredo terminal is the largest LTL distribution center on the U.S.-Mexico border, with 51,000 square feet of warehouse space.
In addition, the new Phoenix facility is six times larger than CF’s original building there, illustrating how much border trade has grown.
CF is ranked number No. 7 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for full press release.)
Traffic.com, Emmis Reach Deal
Traffic.com said it has reached a two-year deal with EMMIS Communications (EMMS) to provide traffic reports to 22 radio stations and their Web sites.The Wayne, Pa.-based company is a leading provider of digital traffic and logistics information.
It currently provides on-air reports to EMMIS stations in New York and Los Angeles, and plans to expand into cities including Chicago and Denver once current traffic contracts expire. Transport Topics
(Click here for the full press release.)
