News Briefs - Dec. 15
The Latest Headlines:
- Price of Crude Oil Rises Nearly 6% on Wednesday
- J.B. Hunt Increases Dividend; Will Repurchase Shares
- Kansas Government Opens New Trucking Center
- Commerce Department Lowers Tariffs on Canadian Lumber
- Alabama to Develop New Truck Safety Proposal
- S&P: Strong Demand Helps Trucking Overcome Fuel Costs
- J.B. Hunt Increases Dividend; Will Repurchase Shares
Price of Crude Oil Rises Nearly 6% on Wednesday
The price of crude oil surged more than $2 a barrel on Wednesday, its biggest gain in six months.Crude oil for January delivery rose $2.37, or 5.7%, to close at $44.19 a barrel on the New York Mercantile Exchange. It was the biggest increase since June 1 and highest close since Dec. 1.
The price rose after the Department of Energy said heating-oil supplies fell 71,000 barrels to 49.9 million barrels in the week ended Dec. 11. It also said distillate stocks, which include heating oil and diesel, rose 37,000 barrels to 119.3 million, but a jump of 1 million barrels was expected, Bloomberg said.
J.B. Hunt Increases Dividend; Will Repurchase Shares
Truckload carrier J.B. Hunt Transport Services Inc. said its board of directors raised the company's dividend to 12 cents per share from 3 cents and authorized the repurchase of up to $100 million of its common stock over the next year.The dividend is payable Feb. 18 to shareholders of record on Jan. 31.
"This action is based upon our long-term expectations of strong cash flow and not upon any change in our outlook for earnings for the current quarter or for 2005," said Kirk Thompson, chief executive officer.
J.B. Hunt is ranked No. 9 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Kansas Government Opens New Trucking Center
The Kansas Corporation Commission, the agency that oversees the state's trucking industry, opened a new facility in Topeka on Wednesday, the Wichita Business Journal reported.The commission said the center would bring together the different agencies necessary for trucking companies to do business in Kansas.
The center also includes staff from the Kansas Department of Revenue and the Kansas Department of Transportation, the Journal reported. Transport Topics
Commerce Department Lowers Tariffs on Canadian Lumber
The Commerce Department said Tuesday it lowered the main import duties on lumber from Canada to 17.2% from 18.8%.The decision could lead to $100 million of refunds to Canadian producers, Bloomberg reported. The United States imposed the tariffs in 2002 after accusing Canada of subsidizing its lumber industry. Canada called the duties unwarranted and protested to the World Trade Organization.
If the lower tariffs spur additional demand for wood, it would help the trucking companies that ship lumber to factories or finished goods to stores. Canada exports about $4.6 billion a year of timber to the United States.
Commerce also said it cut a separate tariff -- to an average of 4% from 8.4% -- aimed to Canadian companies that illegally under-price their exports. It also lowered the deposits Canadian mills must make going forward. Transport Topics
Alabama to Develop New Truck Safety Proposal
Alabama and federal transportation officials, troopers and trucking officials were expected to meet Dec. 20 to develop a truck safety proposal for Gov. Bob Riley, the Associated Press reported.The proposals were expected to cover load tie-downs, speed and other safety issues.
State officials said the rising number of trucks traveling through the state, combined with a number of serious truck-involved crashes in recent months, sparked the meeting. Transport Topics
S&P: Strong Demand Helps Trucking Overcome Fuel Costs
Standard & Poor's said that although high fuel prices were having some effect on the profitability of trucking companies, "the current strong demand environment has allowed truckers to pass on most of the added cost through fuel surcharges."The credit-rating agency also said in a statement that passenger airlines were being hurt more severely by high oil prices than any other transportation segment. S&P said the price of converting oil into jet fuel has increased due to limited refining capacity.
"Overall performance in the shipping sector remains buoyed by strong demand for raw materials and export growth fueled by China's impressive growth, increased global demand for oil, as well as relatively tight vessel supply," report said. Transport Topics
