Executive Briefing - May 11
- Nober Joins Deputy DOT Secretary
- UPS Well-Positioned for Growth, CEO Says
- OTR Applies for Delisting
- Seven Convicted in Dutch Truck Deaths
- Spot Gasoline Prices Set Record in West
- Hyundai Deal Near, DaimlerChrysler Says
- U.S. Eyes Ford Pickup Steering Problem
- Knight Transportation Declares Stock Split
- VDOT Warns of Wilson Bridge Delays
- Rail Intermodal Drops 3.5%
Nober Joins Deputy DOT Secretary
Roger Nober will begin duties Monday as counselor to Michael P. Jackson, the deputy secretary of transportation.Nober said the requirements of his job will be based largely on the issues that come before Jackson and Transportation Secretary Norman Y. Mineta.
“I expect to provide the deputy secretary legal policy and political advice on issues that come up in the secretary’s office,” Nober said.
He does expect to track several trucking topics, including hours of service, size and weight issues and the safety of Mexican trucks operating in the U.S.
Prior to his appointment to the Department of Transportation post, Nober was chief counsel of the House Committee on Transportation and Infrastructure, which oversees trucking issues. Daniel L. Whitten
UPS Well-Positioned for Growth, CEO Says
United Parcel Service Chairman and Chief Executive Officer Jim Kelly said Friday that despite the sluggish economy, the Atlanta-based company is well positioned for long-term growth.
Kelly also reaffirmed the company’s second-quarter earnings will be at the low end of the previously stated range of 55-60 cents.
So far this quarter, Kelly said that ground volume has been close to the same as the end of the first quarter. UPS (UPS) earned 51 cents per share for the first quarter, down 8.9% from the same quarter last year.
UPS is ranked No. 1 on the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
OTR Applies for Delisting
OTR Express said Friday that it has applied to the Securities and Exchange Commission to remove its shares of common stock from listing on the American Stock Exchange.The Olathe, Kansas-based company said its stock had not met requirements for some time, and was no longer eligible for continued dealings on the AMEX.
Trading in shares of OTR has been halted since it announced that it will cease operations within 60 days (See related story, May 9). Transport Topics
(Click here for the full press release.)
Seven Convicted in Dutch Truck Deaths
A Dutch court convicted seven men on Friday in the deaths of 58 Chinese illegal immigrants who suffocated in a cargo truck in England last June, news services reported.The defendants received prison sentences of up to nine years, but were acquitted of the more serious charge of manslaughter. Two others were acquitted of all charges.
The two leading defendants were found guilty of running an international human trafficking ring that charged tens of thousands of dollars per person to smuggle them to England.
Dutchman Perry Wacker, the driver of the truck, was sentenced to 14 years imprisonment in an English court last month for the manslaughter of the immigrants. Only two immigrants survived the trip. Transport Topics
Spot Gasoline Prices Set Record in West
For the second consecutive week, the Weekend Gas Watch of the Automobile Club of Southern California has spotted record high retail prices at some popular motor trip destinations.In the Los Angeles-Long Beach area, the average price of a gallon of unleaded regular gasoline rose 12.1 cents during the past week, which was nearly twice the jump recorded the previous week.
In San Diego, the average price was up 3.5 cents; in the Santa Barbara-Santa Maria-Lompoc area, the increase was 2.9 cents.
In Las Vegas during the same period, the average price increased 4.2 cents, while the average price rose 1.8 cents a gallon in the Phoenix-Mesa areas in Arizona. Transport Topics
(Click here for the press release.)
Hyundai Deal Near, DaimlerChrysler Says
DaimlerChrysler (DCX) said discussions about a joint venture with South Korea’s Hyundai Motor Co. are proceeding well and should take shape soon, denying speculation that the deal may be shelved in favor of closer ties to Japan’s Mitsubishi, Reuters reported.
The Frankfurt, Germany-based vehicle manufacturer, which is the world’s largest maker of commercial vehicles, has targeted China, Japan and Korea as growth areas for its truck business.
Daimler took a 9% stake in Hyundai last year, which, combined with Mitsubishi’s share of the Korean company, gives it an 11.2% stake.
DaimlerChrysler is struggling to pull the commercial business out of the red, where it was put in part by slumping sales of Freightliner trucks in the U.S. Transport Topics
U.S. Eyes Ford Pickup Steering Problem
The National Highway Traffic Safety Administration is investigating a potential steering problem on some 880,000 Ford (F) Super Duty F-Series pickup trucks made in 1999 and 2000.
Pickups are used in a wide variety of trucking applications, especially among utility fleets and other service-oriented businesses.
NHTSA said a steering gear sector shaft on the trucks could fracture, causing a loss of control.
According to government officials, there have been reports of 41 crashes, involving 11 injuries, as well as 36 warranty claims.
Ford said the fractures it has inspected have occurred as result of a crash, and did not cause the crash. Transport Topics
Knight Transportation Declares Stock Split
The board of directors of Knight Transportation (KNGT) declared a 3-for-2 stock split on Thursday, payable as a dividend on its issued and outstanding common stock, to shareholders of record as of May 18, 2001.
The company said that the stock split was declared in order to provide additional liquidity.
The dividend will be paid on June 1, and will result in the exchange of three shares for every two shares held.
Knight Transportation is ranked number No. 85 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
VDOT Warns of Wilson Bridge Delays
The Virginia Department of Transportation has warned of more delays as it completes the replacement of the steel grid deck that covers the draw span of the existing Woodrow Wilson Bridge this weekend.The remaining work will require closing two of the three lanes on the outer loop of the Beltway (I-95/495 northbound, affecting travel from Virginia to Maryland) during the times:
- Friday, May 11, 10 p.m. until Saturday, May 12, 10 a.m.
LI>Saturday, May 12, 10 p.m. until Sunday, May 13, 10 a.m.
An estimated 17,500 truck cross the Wilson Bridge each day. Transport Topics
Rail Intermodal Drops 3.5%
Railroad intermodal business continued to drop last week with a total of 170,950 trailers and containers loaded, which was 3.5% below the corresponding week last year, according to the Association of American Railroads.For the first 18 weeks of the year, the total was 3,016,708 trailers and containers, which was down 2.6% from the 3,097,313 reported at the same point in 2000.
Trailers continued to show the greatest lag, reflecting the slumping domestic economy. Containers, which are used mainly in international trade, were down 1.3% for the week and 1.1% for the year. Trailers, used only within the continent, dropped 8% in the week-to-week comparison and 10.3% in the first 18 weeks.
Rail intermodal is the portion of the rail business most directly competitive with truck service. Transport Topics
