News Briefs - April 12
The Latest Headlines:
- Marten Transport Expects Lower 1Q Earnings
- Rising Gasoline Prices Not Likely to Limit Travel
- Truckers Injured Less in 2000; Still Higher Rate Than Other Workers
- Meeting Brings New Ideas on I-81 Tolls
- Increase in Meal Deduction for Canadian Truckers Likely
- U. of Michigan Consumer Sentiment Index Dips
- Pacer Raises IPO Value to $225 Million
- U.S. Likely to Grant Steel Tariff Exemptions
- Caterpillar Sales May Rise on Tax Break, Forbes Says
- Rail Intermodal Down 1.1% in Latest Week
- O’Neill Says Europe Looking to U.S. For Growth
- Rising Gasoline Prices Not Likely to Limit Travel
Marten Transport Expects Lower 1Q Earnings
Refrigerated truckload carrier Marten Transport Ltd. said Friday that it anticipates first-quarter earnings will be between 13 and 16 cents per share.This would be a significant decline over the Mondovi, Wis.-based company’s 2001 results. The company had earnings of 39 cents per share during the first quarter of 2001.
Randolph Marten, president and chairman, said the company “did not achieve the freight rate increases necessary to cover the cost increases we incurred during the period, in particular the cost of insurance.”
The company is scheduled to report earnings on April 18. Transport Topics
(Click here for the full press release.)
Rising Gasoline Prices Not Likely to Limit Travel
Heading into the spring and summer travel seasons, industry observers said that higher fuel prices are not likely to keep people from traveling, Reuters reported Friday.Nearly one-third of all commercial trucking is carried out in gasoline-powered vehicles. An increase in driving can also lead to more traffic and delays for all truckers.
A spokesman for AAA said that when fuel prices increase, consumers find other ways to reduce costs, without cutting vacations.
Local chapters of the auto club reported that gasoline prices continued to increase last week.
The Automobile Club of Southern California said that the price of gasoline rose 1 cent around the Los Angeles-Long Beach area to $1.617 per gallon. Also, the Weekend Gas Watch produced by AAA Texas showed that the price of gasoline rose around every major city including Austin, where it jumped 4.1 cents per gallon to $1.538. Transport Topics
(Click here for the full press release from the Auto Club of Southern California.)
(Click here for the full press release from AAA Texas.)
Truckers Injured Less in 2000; Still Higher Rate Than Other Workers
There continues to be a decline in the overall amount of time away from work caused by injury and illness, the Bureau of Labor Statistics said earlier this week, but truck drivers continue to be injured at a higher rate than any other worker in private sector.The total number of workplace injuries declined to 1.7 million in 2000, from 2,2 million in 1994, the survey found. While the number of injuries for truck drivers fell to 1.36 million in 2000, from 1.41 million the year before, that is still 53,000 more than had been reported in 1998.
During 2000, more than 577,800 musculoskelatal disorders, defined as an injury or disorder of the muscles, nerves and spinals discs not caused by slips or accidents, were reported. Truck drivers, nursing aides and nonconstruction laborers accounted for 20% of these disorders, Labor said.
The survey also found that nearly 60% of all injured workers had at least one year of service and almost 25% had more than five years, indicating that experienced workers can lose time to injury. Transport Topics
Meeting Brings New Ideas on I-81 Tolls
The debate over whether to use revenue from truck tolls to widen Interstate 81 in Virginia has yielded two new ideas during a public hearing, the Roanoke Times reported Thursday.The highway runs north-south through the western part of the state between Tennessee and West Virginia. An estimated 50,000 vehicles travel daily on the interstate and 40% of those vehicles are trucks.
The first idea, proposed by trucking company spokesmen was to have cars pay tolls as well, rather than just over-the-road trucks. Another idea, offered by Del. Morgan Griffith, the state’s House majority leader, was that truckers should be eligible for a tax break if a toll is imposed.
The majority of the people at the meeting were in favor of expanding the highway, the article said, but some said they were opposed to having truck tolls be the main source of funding.
In March, the state approved a plan to widen the road with two dedicated truck lanes, but had not finalized a truck toll package. (Click here for related coverage.) Transport Topics
Increase in Meal Deduction for Canadian Truckers Likely
The Canadian Trucking Alliance said Friday that the Canada Customs and Revenue Agency is close to increasing the daily receipt-free meal allowance for truck drivers.A court case involving a driver from Winnipeg, Manitoba, raised questions about how reasonable the limit of 50% of $33 Canadian per day was, especially for drivers who travel into the United States, the CTA said.
The current limit has been static since 1991.
The CTA had hoped the Customs and Revenue Agency would have made a decision by now, but said the agency said it is looking at three plans, all of which raise the deduction limit. A final decision is expected by early May. Transport Topics
U. of Michigan Consumer Sentiment Index Dips
The University of Michigan’s preliminary index of consumer sentiment for April declined to 94.4 from March’s final reading of 95.7 in March, Bloomberg reported Friday.If consumers are feeling less upbeat, they likely will spend less, which means trucking will likely see a decline in demand to restock store shelves.
The index of current economic conditions was 100.9 in April, compared with 100.4 in March. The index of expectations was 90.2, compared with 92.7 last month. Transport Topics
Pacer Raises IPO Value to $225 Million
Pacer International Inc., a transportation and logistics company, boosted its initial stock sale to $225 million from $150 million, according to a filing with the Securities and Exchange Commission.The company did not say how many shares will be offered and at what price, Bloomberg reported Friday. It has applied to list its stock on Nasdaq.
In 2001, Pacer completed the purchases of Rail Van Inc. and RFI Group Inc. The company is formerly part of Union Pacific Corp.
Last month, Pacer said that net income for fourth quarter of 2001 was $19 million, an increase of $8.6 million from the fourth quarter of 2000. Transport Topics
U.S. Likely to Grant Steel Tariff Exemptions
U.S. Treasury Secretary Paul O’Neill said that the United States is likely to grant a significant number of exemptions to its recently adopted tariff on steel, Bloomberg reported Friday.The tariffs on steel, which will be as high as 30% on some imports, could impact trucks in the United States. While domestic steel haulers could see a boost in business, truckers that carry imported steel could see a decline.
Foreign steel manufacturers were given 120 days to ask for exemptions from the tariffs that were announced on March 5, O’Neill said.
O’Neill made the comments during an interview on the BBC’s Today program, Bloomberg said. Transport Topics
Caterpillar Sales May Rise on Tax Break, Forbes Says
Diesel engine and heavy equipment manufacturer Caterpillar Inc. may see its sales rise more than it had anticipated in the year ahead.Forbes magazine said that the stimulus package recently passed by Congress includes a 30% tax deduction for companies to purchase capital equipment.
As the economy recovers, Caterpillar will likely benefit as construction firms and contractors find equipment purchases more affordable. Transport Topics
Rail Intermodal Down 1.1% in Latest Week
Intermodal loadings on the nation's railroads totaled 169,414 trailers and containers for the week ended April 6, down 1.1% from the from the year-earlier period, the Association of American Railroads said Thursday.Intermodal is the segment of the railroad freight business most directly competitive with trucking.
Through the first 14 weeks of the year, the railroads loaded 708,553 trailers and 1,637,056 containers, for a total of 2,345,609 falling 0.4% behind the 14-week total last year, with trailers lagging by 7.8% and containers running 2.8% ahead.
Over-the-road trucks pull both trailers and containers, but containers are used extensively in international trade, suggesting this segment of intermodal is stronger than others that compete directly with more conventional trucking. Transport Topics
O’Neill Says Europe Looking to U.S. For Growth
U.S. Treasury Secretary Paul O’Neill said that much of Europe was looking to the U.S. economy to help boost its own economic future, Reuters reported.A healthy global economy could boost demand for trucking services as the flow of goods into and out of ports increases.
Speaking in London, O’Neill told reporters that “everyone” is looking at the good growth pattern of the United States and seeing that it is directly connected to their own economies. Transport Topics
