Executive Briefing - May 25
- Congress Works to Wrap Up Tax Cut Bill
- Cannon Says It Is Not Bankrupt
- UPS Completes Fritz Purchase, Plans New Unit
- Flooding Will Cut BNSF’s Earnings
- Volvo to Ship 500 Truck Kits to Iran
- Rail Intermodal Down 4.4%, AAR Says
- Cannon Says It Is Not Bankrupt
Congress Works to Wrap Up Tax Cut Bill
Republicans in the U.S. House and Senate were not only negotiating among themselves Friday to wrap up a tax cut bill for President Bush to sign in coming days, but were trying to craft a deal with Democrats as well, the Associated Press reported.The bill might help the trucking industry if tax relief helps spur general economic activity, but it also contains special features sought by trucking such as the reduction and eventual end to the estate tax.
The goal was to get the tax cut done late Friday or perhaps on Saturday, and have it ready so President Bush could it as early as Memorial Day (Monday).
With this week’s decision by Vermont Republican Sen. James Jeffords to bolt the party and throw control of the Senate to the Democrats, getting a tax deal both sides can support has taken on increased importance. Transport Topics
Cannon Says It Is Not Bankrupt
In response to a $1.33 million lawsuit filed by three unsecured creditors, Cannon Express (AB) said Friday that it is not bankrupt or liable for the charges claimed.
The creditors are asking for Cannon to be placed in bankruptcy under Chapter 7 of the federal bankruptcy code. The suit was filed May 22 in Fayetteville, Ark.
Based in Springdale, Ark., the truckload carrier said earlier this month its net loss for the fiscal third quarter was $795,777.
Click here for the press release.)
UPS Completes Fritz Purchase, Plans New Unit
United Parcel Service (UPS) has moved toward the formation of a new freight forwarding and customs clearance business with the acquisition of Fritz Companies in a transaction valued at about $437 million, according to press releases from both companies.
Other brokerage and forwarding operations acquired over the past 18 months will also become a part of the new business.
"Building on the strengths of each other, we will be a powerful force in the provision of global logistics services and other related services to our customers," said Graham R.F. Napier, Fritz's President and Chief Operating Officer.
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 press release from Fritz.)
(Click here for the press release about UPS’ new services.)
Flooding Will Cut BNSF’s Earnings, BNSF Says
Officials of the Burlington Northern Santa Fe Corp. (BNI) told financial analysts Thursday that spring flooding in the Midwest will trim an estimated $30 million from the railroad’s second-quarter earnings.
BNSF, based in Fort Worth, Texas, said the reduced earnings, resulting from higher operating expenses and lower revenues, will equal five cents a share.
Analysts had expected the railroad to earn 58 cents per share in the second quarter.
BNSF officials said main lines between Chicago and Minneapolis-St. Paul and in the St. Louis area are expected to return to normal this weekend after having been either shut down or operating at reduced speed for six weeks.
The company spokesmen also said fuel costs in the second quarter will be about 10% higher than the preceding year. Transport Topics
(Click here for the press release.)
Volvo to Ship 500 Truck Kits to Iran
Volvo AB (VOLVY) has received an order from Iran for 500 FH12 trucks, which the company said signals a shift in technology for Iran’s transport industry.
The FH12 is used in heavy haulage and features a computerized driver information system.
The trucks are to be shipped in kits and assembled in Teheran, the company’s press release said.
The agreement grew out of a cooperative agreement that Volvo signed earlier this year with Saipa Diesel in Iran on the manufacture of heavy trucks. Transport Topics
(Click here for the full press release.)
Rail Intermodal Down 4.4%, AAR Says
Railroad intermodal loadings for the week ended May 19 totaled 179,544, which was 4.4% below the total set at the same point in 2000, the Association of American Rail-roads reported.As has been the case all year, loadings of trailers in intermodal service suffered a bigger drop, 10%, than did containers, which fell only 1.9%.
While all rail intermodal service is competitive with over-the-road trucking, the drop in trailers is indicative of weakness in freight demand and the economy at large.
For the first 20 weeks of the year, trailers were down 10.2% while containers were down 0.7%. Total loadings were 3,453,044, down 2.8% from the previous year. Transport Topics
