Executive Briefing - May 23
- FedEx to Eliminate 130 Jobs
- ATA Opposes Texas Plan Requiring 'Boutique' Fuels
- First Public Pure Biodiesel Station Opens in S.F.
- Sen. Jeffords Delays Party Announcement
- AAA Offers Long-Term Solutions to Congestion
- US&T Reduces Loss in 3Q
- Continental Talking to Ford About Replacement Tires
- Richer Systems, iFLEET to Integrate Products
- McClendon, Alternative Fuel Reach Deal
- ATA Opposes Texas Plan Requiring 'Boutique' Fuels
FedEx to Eliminate 130 Jobs
FedEx (FDX) is eliminating 130 jobs over the next two months in the Austin, Texas area as it ends a contract with Dell Computer to manage warehouses, Bloomberg reported.
The cuts at FedEx Supply Chain Services follows about 120 other firings from the same unit in four other states as FedEx moves away from overseeing warehouses for clients.
FedEx said many of these employees will be hired by EGL Eagle Global Logistics (EAGL), which is taking over the Dell contract on July 31.
The Memphis, Tenn-based company announced this week it is eliminating profit sharing for 18 months for about 68% of its workforce (See Story, May 22).
ATA Opposes Texas Plan Requiring 'Boutique' Fuels
Texas' plan to require the sale of low-emission diesel fuel within the Dallas/Fort Worth area is contrary to the Bush administration's energy policy, the American Trucking Associations said Tuesday.In comments filed opposing the plan, the ATA said it would cause supply interruptions and detrimental price spikes.
The recent energy task force set up by the White House and headed by Vice President Cheney found U.S. refiners have had difficulties supplying ''boutique'' fuels, which have been blamed for causing a jump in fuel prices, Reuters reported. Transport Topics
(Click here for the full ATA statement.)
First Public Pure Biodiesel Station Opens in S.F.
The first publicly accessible fueling station to offer pure biodiesel (B100) opened on Wednesday in San Francisco, the National Biodiesel Board said.Biodiesel is a cleaner-burning alternative fuel made from renewable fats or oils, such as soybean oil, and can be burned in any diesel vehicle with little or no modification to the engine.
A similar station also opened Wednesday in Sparks, Nevada, but it only offers B20, a mixture of biodiesel and regular diesel.
The price of a gallon of biodiesel in San Francisco after taxes is $3.15. Before taxes it is $2.99.
In Nevada it is $1.65 before taxes, according to Jenna Higgins, director of communications for the National Biodiesel Board
Currently, most fleets using biodiesel are government fleets, transit agencies, national parks and school bus fleets. Transport Topics
Sen. Jeffords Delays Party Announcement
Sen. James Jeffords of Vermont, who is widely expected to leave the Republican Party, postponed an official announcement until Thursday in order to make it from his home state, the Associated Press reported.This dramatic defection would give Democrats control of the now evenly divided Senate for the first time since 1994.
If he decides to drop out, it would elevate Sen. Tom Daschle of South Dakota from minority leader to majority leader of the Senate.
Currently, the Senate is now split between 50 Republicans and 50 Democrats, with Vice President Cheney, a Republican, having the tie-breaking vote.
Even if Jeffords became an independent, Democrats would still control the chamber, 50-49. Republicans could keep committee chairmanships if Jeffords voted with them in organizational meetings.
Sources told Reuters that President Bush and Cheney urged Jeffords to stay with the party during a meeting on Tuesday, but the effort was not believed to be successful. Transport Topics
AAA Offers Long-Term Solutions to Congestion
Susan Pikrallidas, vice president of public affairs for AAA, said Wednesday there is no simple solution to congestion problems in the United States.In testimony before the House Highways and Transit Subcommittee, she said solving the problem will require effective planning, local decision-making and sustained funding.
A prosperous economy and growing population have made the congestion problem worse, but road improvements and capacity expansion alone will not solve congestion problems, she said.
Better traffic management, public transportation, and improved travel efficiency are all needed to solve the problem in the long-term. Transport Topics
(Click here for the full press re-lease.)
US&T Reduces Loss in 3Q
United Shipping & Technology (USHP) reduced its net loss for the third quarter of fiscal 2001 by 9%, posting a loss of $7.1 million, compared with $7.8 million in the third quarter of the previous year.Jeff Parell, chief executive officer, said the progress toward profitability was made “despite one less delivery day and severe weather in the quarter and the slowing national economy.”
The company said revenue for the quarter ended March 31 dropped to $112.2 million, which was $26.7 million below the figure for the previous year. The drop was attributed to restructuring charges.
Based in Minneapolis, US&T says it is the largest nationally integrated supplier of same-day delivery and logistics services in North America. Transport Topics
(Click here for the press release.)
Continental Talking to Ford About Replacement Tires
German tiremaker Continental AG said it is talking to Ford (F) about replacing Firestone tires that are being recalled from Explorers and other Ford vehicles.
On Tuesday, Ford announced a recall of 13 million tires manufactured by Firestone. (See Executive Briefing, May 22)
Ford and Firestone also announced they had severed commercial ties, ending a near 100-year relationship.
Continental said that although the focus is on replacing tires, it is talking to Ford about supplying tires for new vehicles.
Michelin also said it had been contacted by Ford to assist in the replacement of some 13 million tires. Transport Topics
(Click here for the latest press release from Ford)
Richer Systems, iFLEET to Integrate Products
Richer Systems Group and iFLEET have reached an agreement that calls for the integration of the company’s product lines.The companies plan to combine their web-based services which they say will allow transportation customers to benefit through reduced costs and timely availability of information.
Based in Atlanta, iFLEET provides information technology and web-enabled services to the transportation industry. Richer Systems provides application services and e-commerce and asset management software solutions. Transport Topics
McClendon, Alternative Fuel Reach Deal
McClendon Transportation Group said it has reached an agreement with Alternative Fuel Systems to equip one of its over-the-road tractors with a test unit that reduces emissions and increases fuel mileage.Based upon prior tests, the increase in fuel efficiency is expected to be significant.
Once the new tests are verified by a third party for both the lowered emissions and increased fuel efficiency, McClendon said it will become the sole distributor of the system to the trucking industry. Transport Topics
(Click here for the full press release.)
