News Briefs - Aug. 26
- CAW Votes to Authorize Strike
- Tolls at Detroit-Windsor Tunnel to Rise
- High Oil Prices Seen Threatening Recovery
- Hiring Not Expected to Grow in 4Q
- Lundberg: Gasoline Prices Up 0.5 Cent
- Yellow Sets Sept. 3 as Record Date of SCS Spin Off
- Tolls at Detroit-Windsor Tunnel to Rise
CAW Votes to Authorize Strike
Members of the Canadian Autoworkers Union voted Sunday to give their union bosses the power to call a strike against the big three automakers if contract talks do not progress, Reuters said.A strike at the numerous Canada-based plants of Ford, General Motors and DaimlerChrysler could seriously disrupt shipments of parts and vehicles, which would hurt the trucking firms that haul these goods.
The CAW said at least 95% of the employees at each of the three automakers voted to authorize a strike. A strike would involve about 46,000 employees, Reuters said.
The authorizing of a strike is a common tactic in the collective bargaining process, and does not necessarily insure a strike will be called, Reuters said. The current agreement expires Sept. 17. Transport Topics
Tolls at Detroit-Windsor Tunnel to Rise
Tolls at the Detroit-Windsor Tunnel will increase for commercial and passenger vehicles heading to Canada on Labor Day, the Detroit Free Press reported.The minimum vehicle fare for commercial trucks will rise to $2.75 from $2.25, while the additional charge per 100 pounds will rise to 28 cents from 25 cents for trucks over 9,500 pounds, according to the tunnel’s Web site.
Motorists in passenger vehicles will also pay $2.75.
Tolls will increase for vehicles coming into the United States at a later date, the story said.
The Detroit and Canada Tunnel Corp. said the higher fees are related to $9 million in electrical and mechanical improvements under way on the Michigan side of the tunnel. Transport Topics
High Oil Prices Seen Threatening Recovery
As oil prices flirted with $30 a barrel last week, the Wall Street Journal said Monday that the strength of the U.S. economic recovery could be threatened if prices remain high.High crude oil prices often flow down to motor fuels like diesel and gasoline, hurting the bottom line of trucking companies.
Rising fuel prices can also squeeze household incomes, in addition to corporate profits, thus limiting spending and investment and stalling the recovery, the Journal said.
Prices have spiked recently on fears that supplies will be disrupted if the United States invades Iraq, but countries including Saudi Arabia said they would pick up the slack if oil from Iraq was cut off. (Click here for related coverage.) Transport Topics
Hiring Not Expected to Grow in 4Q
A new survey found there will not be an increase in the number of job openings during the fourth quarter as companies remain cautious about the U.S. economic recovery, the Associated Press reported Monday.If more people are out of work, there will likely be a decrease in consumer spending, which will hurt the demand for trucking services to deliver goods to stores.
According to Manpower Inc.'s quarterly survey of 16,000 businesses, 24% of companies surveyed expected to hire more people during the quarter, while 9% plan to cut workers. That compares with 27% expecting to add jobs and 8% planning cuts in the third quarter.
When seasonally adjusted, the fourth quarter's employment prospects remain stable, the survey said.
The manufacturing sector also expects to maintain a consistent hiring level, which is a significant improvement over a year ago, AP said. Transport Topics
Lundberg: Gasoline Prices Up 0.5 Cent
The average price of gasoline rose 0.5 cent a gallon to about $1.46 per gallon over the past two weeks, according to the Lundberg survey of 8,000 stations released Sunday.Although diesel fuel is usually associated with trucking, a large segment of commercial trucking is carried out in gasoline-burning vehicles.
Prices are basically unchanged since early April due to stability in crude oil prices and at U.S. refineries, analyst Trilby Lundberg said. She also noted it is very unusual for prices to move so little during the summer months, the Associated Press reported.
The national weighted average price of gasoline, including taxes, at self-serve pumps Friday was about $1.42 per gallon for regular, $1.52 for mid-grade and $1.61 for premium.
Yellow Sets Sept. 3 as Record Date of SCS Spin Off
Yellow Corp. said late Friday the record date of the spin off of less-than-truckload firm SCS Transportation Inc. will be Sept. 3, 2002.Yellow’s shareholders will receive one share of SCST common stock for every two shares of Yellow common stock they own. SCST is a holding company for the operating companies of Saia Motor Freight Line Inc. and Jevic Transportation Inc., both regional less-than-truckload carriers.
The Overland Park, Kan.-based company will continue to trade on Nasdaq under the symbol YELL and the spin off should be completed around Sept. 30.
Yellow is ranked No. 6 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for the full press release.)
