Executive Briefing - June 6
- Gillette, Lucent Plan to Eliminate Jobs
- Union Pacific Says Quick Recovery Unlikely
- CPR to Enlarge Intermodal Facilities
- Stoughton Files Notice of Plans for Layoffs
- OPEC Opts Against Upping Oil Output
- Bush Seeks Investigation on Steel Industry
- Senate Shift May Kill Bush Energy Plan
- Slater Named to KCSI Board
- Studies to Look at Truck Traffic in Pa.
- Union Pacific Says Quick Recovery Unlikely
Gillette, Lucent Plan to Eliminate Jobs
Two manufacturers said Wednesday that they plan to eliminate jobs as they continue to cut costs in response to the sluggish economy.Job cuts in the manufacturing sector are especially important for the trucking industry because it usually means a decline the volume of truck shipments in the next few months.
Gillette Co. (G), the largest maker of razors, said it plans to cut 600 jobs and trimmed its annual sales-growth forecast to 3% from 5%.
In December, Gillette said it would fire 2,700 employees.
Also, Lucent Technologies Inc. (LU), the No. 1 U.S. maker of phone equipment, said it plans to offer early retirement to more than 10,000 workers to reduce costs. The company, which already announced plans to eliminate 16,000 jobs, said it expects a significant number to accept the plan. Transport Topics
Union Pacific Says Quick Recovery Unlikely
Union Pacific Corp. (UNP), the nation's largest railroad, said Wednesday that a second-half recovery in the U.S. economy is unlikely, and it is facing continued high fuel costs and declines in demand, Reuters reported.
It also said it wants to capture more business from the trucking industry, which presently does about $1 billion in service along I-5 between the Pacific Northwest, southern California, southern Nevada and Arizona.
Union Pacific said rail car volumes, which are currently flat year over year, are not expected to increase this year, and it is paying more than 10 cents per gallon more for diesel fuel this quarter than it did in the second quarter of last year. Transport Topics
CPR to Enlarge Intermodal Facilities
Canadian Pacific Railway is investing $36 million to enlarge and improve three key intermodal facilities in Chicago, Toronto and Calgary, Canada.
Intermodal is the part of the railroad business most directly competitive with trucking, using, as it does, truck trailers and containers, for cargo delivery on both highway and rail.
According to the press release, the cornerstone of the investment plan is a $26 million expansion program CPR's Vaughan facility, in northern Toronto.
Also invested will be $8 million at Calgary and $1.6 million at Bensenville Yard in Chicago. Transport Topics
(Click here for the press release.)
Stoughton Files Notice of Plans for Layoffs
Stoughton Trailers has filed notice with the state of Wisconsin of plans for 1,105 layoffs during the summer, the Chicago Tribune reported.Stoughton, which manufactures truck trailers, is required by law to notify the state government 60 days before a layoff.
The layoffs, which would come shortly after Stoughton called some employees back to work, would mainly affect workers in Stoughton, Wis. and Evansville, Ind. Transport Topics
OPEC Opts Against Upping Oil Output
The Organization of Petroleum Exporting Countries decided Tuesday that its members will not increase production to cover any shortfall that might be caused by an Iraqi decision to suspend shipment, the Associated Press reported.However, the AP said OPEC made a surprise decision to meet again on July 3 to assess the effects of the Iraqi suspension.
Iraq halted shipments Monday, removing 2.1 million barrels from the world's daily oil supply.
OPEC members cited concern about making decisions (to increase production) that would be regretted later if prices collapse. Transport Topics
Bush Seeks Investigation on Steel Industry
Following a detailed study of the steel industry, the Bush administration has asked the U.S. International Trade Commission for a full investigation into whether current levels of imports are harming U.S. producers, news services reported.While the domestic steel industry praised Bush’s decision, steel users warned that trade sanctions against foreign steel will mean higher prices for everything from vehicles to appliances.
A rise in the price of vehicles would affect all trucking companies. However, companies that haul shipments for the domestic steel industry are likely to be in favor of foreign sanctions because it would increase their business.
Since 1998, a total of 18 U.S. steel firms have filed for bankruptcy protection and 20,000 steelworkers have been laid off, according to industry figures. Transport Topics
Senate Shift May Kill Bush Energy Plan
The shift in power in the Senate may spell defeat for President Bush’s energy plan, unveiled in May, the Associated Press reported.Following the switch in allegiance by Vermont Sen. James Jeffords from Republican to independent, Democrats assumed control of the Senate with a 50-49 majority.
And although incoming Majority Leader Tom Daschle (D-S.D.) called for bipartisanship, he gave the GOP proposal to drill for oil in the Arctic National Wildlife Refuge virtually no chance, the wire service said.
Other elements of the Bush energy plan have also been criticized for what Democrats called a lack of balance with too much emphasis on production and not enough on promoting conservation, energy efficiency and development of renewable sources. Transport Topics
Slater Named to KCSI Board
Rodney E. Slater, Secretary of Transportation in the Clinton administration, has been named to the board of directors of Kansas City Southern Industries.Before becoming secretary, Slater had served as Federal Highway Administrator, wielding considerable authority over trucking matters.
He has most recently been a partner in the public policy group of the law firm of Patton, Boggs in Washington, D.C.
KCSI, based in Kansas City, Mo. operates the Kansas City Southern Railway, as well as the Gateway Western Railway Company. Transport Topics
(Click here for the full press release.)
Studies to Look at Truck Traffic in Pa.
series of upcoming traffic studies will try to determine if alternate routes for industrial truck traffic along Route 248 and from the Essroc cement plant in Nazareth, Pa. are needed, the Express-Times reported.
Among the studies planned are counting vehicles traveling on Routes 248 and 191, evaluating air quality and doing capacity analysis studies of key intersections in the area. Nazareth is located near Allentown and about 75 miles north of Philadelphia.
The studies are a part of improvements Essroc is making in the wake of the company’s environmental violations.
It was fined $100,000 by the Department of Environmental Protection earlier this year and agreed to pay $200,000 in community environmental projects. Transport Topics
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