News Briefs - April 8
The Latest Headlines:
- Pittsburgh Bridge, Tunnel Renovation Begins
- Volvo Ups U.S. Production, Recalls 140
- Levi Strauss to Shut Plants, Cut 3,300 Jobs
- New Report Yields Different Result on Alaska Drilling
- Chairman Seeks to Salvage Simon
- Average Gasoline Price Up 8.44 Cents in Two Weeks
- Price of Crude Rises as Iraq Halts Oil Exports
- Va.Road Reopens After Derailment
- Amtrak Not Yet Ready to Cut Long-Distance Service
- Volvo Ups U.S. Production, Recalls 140
Pittsburgh Bridge, Tunnel Renovation Begins
The Pennsylvania Department of Transportation said that the outbound lanes of Fort Pitt Bridge and Tunnel closed on Saturday for the beginning of a rehabilitation project.In addition, Route 837 will be closed from 10 p.m. to 6 a.m. Sunday through Saturday and additional off-peak hours throughout the normal workweek until May 1. This road can connect drivers to Interstate 79, a north-south route, and Interstate 76, which goes east-west.
The entire project is scheduled to be completed by Aug. 31, and a Web page and phone number has been set up to keep drivers informed of the progress. Transport Topics
Volvo Ups U.S. Production, Recalls 140
Volvo Trucks North America said Friday it will recall about 140 employees at its New River plant in Virginia because of a production increase.The increase, from 50 to 60 units per day, comes in response to current market trends and dealer demand, the company press release said.
During the previous year, Volvo laid off an estimated 700 employees as demand for new trucks nosedived. Employment at the plant dropped to 1200.
As Volvo dealer inventory continues to dwindle, the need to order stock trucks has increased. Dealers quoted considerably more business in the first three months of 2002 versus 2001.
Headquartered in Greensboro, N.C., VTNA is a division of Volvo Truck Corp., Gothenburg, Sweden. Transport Topics
Levi Strauss to Shut Plants, Cut 3,300 Jobs
Jeans maker Levi Strauss & Co. said Monday it will close six manufacturing plants in the United States and cut 3,300 jobs, or about 20% of its workforce.Job cuts, especially in the manufacturing sector, are important for the trucking industry because it usually means a decline in the volume of truck shipments in the next few months.
This announcement comes the same day as a study showed that the pace of job cuts in the retail sector continued through the first quarter of 2002 despite some signs of an economic recovery, Reuters reported.
Challenger, Gray and Christmas said the sector saw 51,078 job cuts in the first quarter.
Meanwhile, Levi Strauss said poor sales has the company headed for its sixth consecutive year of declining revenue. All six plants will be closed by the end of the year. Transport Topics
(Click here for the full press release from Levi.)
New Report Yields Different Result on Alaska Drilling
A week after the U.S. Geological Survey said that significant environmental harm could result if drilling in Alaska's Arctic National Wildlife Refuge takes place, it issued a follow-up report with a different conclusion, the Washington Post reported Sunday.The Bush administration has sought to drill for oil in this area to reduce the United States' dependence on foreign oil. Oil shortages result in higher prices for diesel fuel and gasoline, which hurts the profits of trucking companies.
In this new report, the agency said the most likely drilling scenarios under consideration should have no impact on caribou and other wildlife in the area. The report was written by the same scientist who led the original study, the Post said.
Administration officials had complained that first reported considered an implausible scenario. However, opponents called it an act of political intervention. Transport Topics
Chairman Seeks to Salvage Simon
The assets of bankrupt Simon Transportation Services are to be sold at auction Monday and its chairman is trying to arrange a deal to salvage the company, the Wall Street Journal reported.Jerry Moyes, who also is chairman and chief executive office of Swift Transportation Co., took control of Simon in August 2000 only to file for Chapter 11 protection under bankruptcy laws this past February 2002.
However, the WSJ said, Moyes hopes to buy Simon's assets and combine them with those of Central Freight Lines Inc., based in Waco, Texas.
The Journal said an unnamed buyout firm may also bid on Simon at the auction, which will be held in Salt Lake City. Transport Topics
Average Gasoline Price Up 8.44 Cents in Two Weeks
Seasonal demand, coupled with Mideast unrest, have pushed gasoline prices up more than 8 cents in the past two weeks, according to the Lundberg survey of more than 8,000 stations nationwide.While most commercial trucking operations use diesel fuel, a large segment of the industry runs on gasoline.
Friday's weighted price for all grades and taxes was $1.46 per gallon, up 8.44 cents per gallon from March 22. Since Feb. 8, prices at the pump have risen 32 cents, but they are 10 cents lower than pump prices on Sept. 7, just before the terrorist attacks.
Analyst Trilby Lundberg said nervousness over the Mideast crisis could force prices higher, as could a seasonal increase in demand. Transport Topics
Price of Crude Rises as Iraq Halts Oil Exports
Crude oil jumped more than 5% on Monday after Iraqi President Saddam Hussein ordered a 30-day halt of oil exports to protest Israel's occupation of Palestinian areas, Bloomberg reported.Crude is refined to produce gasoline and diesel fuel, making its price important to the trucking industry.
Iraq is the third-biggest oil producer in the Middle East. Other countries in the region have said they will boost production, but the Organization of Petroleum Exporting Countries output said it will not alter its exports.
Brent crude oil for May settlement rose $1.44 cents, or 5.5%, to $27.43 a barrel on the International Petroleum Exchange in London. In New York, crude oil rose 99 cents, or 3.8%, to $27.20 a barrel. Transport Topics
Va.Road Reopens After Derailment
A section of a major highway in Virginia was reopened late Monday after having been closed by the Sunday derailment of a Norfolk Southern train carrying propane gas, the Associated Press reported.Route 29 had been closed to all north-south traffic at Warrenton, Va. after the accident, although a Norfolk Southern spokeswoman said no propane was leaking. Two of the derailed cars were 30,000-gallon tank cars full of the gas. It took 15 hours for crews to right the five cars which had derailed.
The train had been moving at a low rate of speed and the cause of the derailment was not immediately determined, AP said. Transport Topics
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Amtrak Not Yet Ready to Cut Long-Distance Service
Amtrak, the nation's passenger railroad, has backed away from a threat to cut its long-distance train network, and is again pushing Congress for $1.2 billion in federal funds for the fiscal year beginning Oct. 1, the Associated Press reported Saturday.Amtrak derives some of its revenue from hauling time-sensitive freight in competition with trucking.
Michael Dukakis, vice chairman of Amtrak, told AP that he believes there is a new sense of urgency in Congress to help fix the railroad. Still, Amtrak warned that the long-distance trains are still very much at risk unless it gets more funding. Transport Topics
