News Briefs - Aug. 30
- WTO Allows EU's Sanctions Against U.S.
- Air Cargo Rises 5.9% in July
- Teamsters Approve UPS Contract
- NFI to Purchase Core Carriers
- Crude Oil Prices Little Changed After Thursday’s Increase
- Wilson Bridge May Soon Restrict Heavy Trucks
- Personal Spending Rises 1% in July
- California, Texas See Gasoline Prices Rising
- PMA Rejects Longshoremen’s Contract Offer
- Intermodal Traffic Highest Since 2000
- OPIS Warns of Midwest Diesel Supply Crunch
- Atlas Air Names New President
- Air Cargo Rises 5.9% in July
WTO Allows EU's Sanctions Against U.S.
The European Union won permission from the World Trade Organization Friday to enact as much as $4 billion in duties against the United States because of tax breaks given to U.S. corporations operating abroad, Reuters reported.However, with trans-Atlantic trade worth more than $600 billion annually, it is not likely the EU would impose the duties and risk severely damaging trade relations, Reuters said.
Still, changes in tariffs around the world can affect the flow of goods to and from ports and impact truckers who work those routes.
Among the targeted products are textiles, foodstuffs, automotive parts and even nuclear reactors, Reuters said. The 15-member EU has threatened to impose the tariffs unless the United States ends its favorable tax policy. Transport Topics
Air Cargo Rises 5.9% in July
The amount of cargo carried in the holds of aircraft in July rose 5.9% compared with the year-earlier period, the Air Transport Association said Friday.Trucks carry freight to and from airports, so increased air-cargo volumes can translate into more demand for trucking services.
irlines carried 1.93 billion ton-miles during the month, up from 1.83 billion ton-miles last year, the report said.
Counting only domestic air traffic, the amount of cargo carried rose 9.7% in July to 950.8 million ton-miles. Domestic freight and express rose 22% to 887.55 million ton-miles, but mail cargo fell 54.5% from 139.3 million ton-miles to 63.3 million.
The report covers 16 carriers, including United Parcel Service and FedEx Corp. Transport Topics
Teamsters Approve UPS Contract
The Teamsters union said late Thursday its members have approved a six-year contract with United Parcel Service that covers more than 200,000 employees.The deal, which was approved by 72% of the membership, was negotiated in July and included a 22% pay raise over the life of the contract. The Atlanta-based company also agreed to the creation of 10,000 new jobs and conversion of 10,000 jobs that are now subcontracted, the Associated Press reported.
"This vote reflects recognition by our employees that this is a fair and balanced agreement that rewards them for their hard work, while allowing the company to remain competitive," UPS Chief Executive Officer Mike Eskew said in a release.
UPS is ranked No. 1 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for a press release from UPS.)
(Click here for a press release from the Teamsters.)
NFI to Purchase Core Carriers
Logistics provider NFI said Wednesday it has agreed to purchase Core Carriers, a truckload carrier based in Jacksonville, Fla.Core had 2001 revenues of $46 million, and has 900 trailers and 350 tractors. This acquisition increases NFI's fleet to over 1700 tractors with 2000 drivers and more than 5,300 trailers, it said in a release.
The company is projecting annual revenues of more than $500 million in 2003.
Terms of the deal were not disclosed, but the NFI said it should to be completed about Oct. 1, 2002. Transport Topics
Crude Oil Prices Little Changed After Thursday’s Increase
Crude oil prices were little changed on Friday morning after a 2% jump the day before, Bloomberg reported.Oil is refined into fuels used by the trucking industry, making its price very important.
Analysts are awaiting further indications on the Organization of Petroleum Exporting Countries’ plans on production quotas for the fourth quarter, Bloomberg said.
On the New York Mercantile Exchange, crude oil was down less than 1% at $28.67 per barrel. In London, the price dipped slightly to $27.35. Transport Topics
Wilson Bridge May Soon Restrict Heavy Trucks
Heavy-duty trucks may face restrictions on the Woodrow Wilson Bridge because the old bridge is deteriorating and construction of the new bridge continues to be hampered by delays, the Washington Post reported Friday.The Wilson Bridge carries 200,000 vehicles a day across the Potomac River between Maryland and Northern Virginia along Interstate 95. It is a critical link for East Coast traffic.
The first span of the new bridge was slated to open at the end of 2004, but that has been delayed until at least 2005, a spokeswoman for the Maryland State Highway Administration told the paper.
Despite heavy patchwork on the old bridge, heavy trucks could be banned if the decay continues, the Post said. Transport Topics
Personal Spending Rises 1% in July
U.S. personal spending increased by 1% in July, the strongest performance since October, the Commerce Department said Friday. Personal incomes were unchanged.Consumer spending accounts for about two-thirds of the nation's economic activity and an increase can create additional demand for new goods and the truck shipments that get them to stores.
The increase in spending followed a 0.5% rise the previous month was fueled by an increase in vehicle sales. Economists had expected a 0.8% increase in spending, Bloomberg reported.
Wages and salaries declined 0.2% in July, which is a sign spending may slow in the months ahead, Bloomberg said. Transport Topics
California, Texas See Gasoline Prices Rising
Gasoline prices in California and Texas have increased ahead of the Labor Day holiday weekend, two reports released Friday found.While the biggest over-the-road trucks use diesel fuel, a significant portion of smaller commercial trucks run on gasoline.
The Automobile Club of Southern California said the average price of self-serve regular unleaded gasoline in the Los Angeles-Long Beach area is $1.628 per gallon, which is 2.3 cents higher than last week's price.
The price was also up in San Diego and Santa Barbara but down slightly in Las Vegas and Phoenix.
Meanwhile, AAA Texas said prices in major cities throughout the state rose between 0.2 cent in Ft. Worth and 3.4 cents in Corpus Christi. The highest price was $1.34 a gallon in Dallas. Transport Topics
(Click here for a press release from the Auto Club.)
(Click here for a press release from AAA Texas.)
PMA Rejects Longshoremen's Contract Offer
The Pacific Maritime Association rejected a new proposal from its dockworkers on Wednesday, saying it similar previously rejected offers, the Journal of Commerce reported.If the sides cannot reach of deal and there is a strike, manufacturers and truckers are concerned a strike could seriously disrupt supply lines on the West Coast.
he PMA and the International Longshore and Warehouse Union did not meet Thursday and were not expected to make any significant progress until after the Labor Day holiday, the JoC said.
The two sides have been trying to hammer out a contract since before the longshoremen's previous work agreement expired on July 1. Since then, the two sides have been renewing the existing agreement on a day-to-day basis. Transport Topics
Intermodal Traffic Highest Since 2000
The number of intermodal loadings on U.S. railroads reached 197,938 containers and trailers for the week ended Aug. 24 - its highest total since Oct. 28, 2000, the Association of American Railroads said Thursday.Intermodal is the segment of the rail industry that competes most directly with long-haul trucking.
The number of loadings was 7.4% higher than the same week last year. Container loading continued to lead the way - jumping 11.1% from last year to 147,727. Trailer loadings continued to lag, dropping 2.2% to 50,211, the report said.
For the year-to-date, just more than 6.05 million intermodal cars have been loaded - up 5% from 2001. Transport Topics
Atlas Air Names New President
Cargo airline Atlas Air said Thursday that it has named Jeffery Erickson, the former chief executive officer of Trans World Airlines, as its new president and chief operating officer.Erickson succeeds Jim Matheny, who is retiring.
In his years as the head of TWA between 1994-97 after it emerged from bankruptcy, Erickson led the airline to its first operating profits in six years.
Since leaving TWA, Erickson has been a consultant for several airlines, including Atlas. Transport Topics
(Click here for the full press release.
OPIS Warns of Midwest Diesel Supply Crunch
The Oil Price Information Service is warning that supplies of diesel fuel in the Midwest are "awfully low" and price increases could be coming quickly.OPIS said Thursday current supplies of diesel fuel are below 3 million barrels in the Midwest, more than 20% behind last year's figures.
"Expressed in terms of days' supply the numbers are more scary. Current diesel supply is estimated to be 26.3 days," OPIS said.
Demand for diesel in the region has remained steady, even as inventories have continued to fall, OPIS said. The group believes that it may be too late to avoid a price hike by rebuilding fuel supplies. Transport Topics
