News Briefs - Dec. 17
- UPS Reaches Agreement With Mechanics
- Oshkosh Signs $75 Million U.K. Defense Deal
- FMCSA Orders 300 Cargo Tanks Removed From Service
- Ryder's Outlook In Line With Estimates
- Teamsters Certify Hoffa’s Re-Election
- Panel Moves Closer to Amtrak Breakup
- OPEC May Delay Production Cut
- Vehicle Sales May Slump in 2002
- ITT Industries to Close Plants, Cut Jobs
- White House: 300,000 Jobs to be Lost Without Stimulus
- Report Finds More People Flying
- Oshkosh Signs $75 Million U.K. Defense Deal
UPS Reaches Agreement With Mechanics
United Parcel Service Inc. has reached a tentative agreement with its aircraft mechanics union after 10 months of talks, a U.S. mediator announced Monday.The deal, struck with Teamsters Local 2727, settled issues concerning wages, 401(k) plans, job classifications, health coverage and contract length for the 1,180 employees in the union, Bloomberg reported.
The Teamsters and the National Mediation Board are expected to put the finishing touches on the contract this week.
Based in Atlanta, UPS is ranked No. 1 on the 2000-2001 Transport Topics 100 list. Transport Topics
Oshkosh Signs $75 Million U.K. Defense Deal
Oshkosh Truck Corp. said Monday that it has won a $75 million contract for 92 heavy equipment transporters from the United Kingdom Ministry of Defense.The contract schedules delivery of the tractors and trailers during fiscal 2003 and 2004, the company said. It also includes a contract option worth up to an additional $20 million.
"We're pleased to bring the combat-proven performance of our powerful HET to America's long-time friends and allies in the United Kingdom,” said Robert G. Bohn, Oshkosh chairman, president and chief executive officer. Transport Topics
(Click here for the full press release.)
FMCSA Orders 300 Cargo Tanks Removed From Service
The Federal Motor Carrier Safety Administration said Monday that it has identified more than 300 hazardous material cargo tanks that must be removed from service for failing to comply with rear-end protection standards.The equipment in question was designed and certified by Chemical Transportation Equipment Consultants of Lubbock, Texas. The company is no longer in business, according to the FMCSA release.
The designs were sold to Bulk Truck and Transport and Eagle Fabrication and Repair. The two companies used them to make rear-end protection devices for the tanks. The devices fail to meet minimum regulatory standards, the release said.
The tanks are used primarily in the transport of anhydrous ammonia, propane and other compressed gasses. If the device failed, the tanks could leak as a result of a rear-impact collision. Transport Topics
(Click here for the full press release.)
Ryder’s Outlook In Line With Estimates
Ryder System Inc., the largest commercial truck-leasing company, said Monday that its earnings for the fourth quarter and for 2002 will be in line with expectations.Ryder said in a release it will to earn 38 cents to 40 cents a share in the fourth quarter of 2001, and $1.51 to $1.58 a share for fiscal 2002. Both of these projections are near analysts’ estimates, Reuters reported.
Overall revenue growth will be essentially unchanged from 2001, Ryder said, due to continued weakness in the U.S. economy. Earlier this year, the company said it was cutting 700 jobs due to the slowdown.
Based in Miami, Ryder is ranked No. 4 in the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Teamsters Certify Hoffa’s Re-Election
The International Brotherhood of Teamsters said Friday that the re-election of James P. Hoffa as president of the union was official.Hoffa defeated challenger Tom Leedham by a margin of 65% to 35% in last month’s vote. Hoffa, who will now serve a 5-year term, also defeated Leedham in 1998.
One of his first tasks will be to negotiate a new deal with United Parcel Service, the union's largest contract. It expires on July 31, 2002.
Besides truck drivers, the Teamsters' 1.4 million members include workers at rental car companies, airlines, and catering companies for airlines. Transport Topics
(Click here for the full press release.)
Panel Moves Closer to Amtrak Breakup
The Amtrak Reform Council is leaning toward breaking up Amtrak, the national passenger rail system, the Wall Street Journal reported on Monday.The group is considering restructuring options that could lead to the system being broken into smaller regional carriers.
The railway has never been profitable and last month the council determined that it would not meet congressional deadline to operate free of government subsidies.
Amtrak currently carries small packages, periodicals, first class mail and dry freight, but had looked at launching a long-haul, transcontinental service. Such a service would compete with trucks for business. Transport Topics
OPEC May Delay Production Cut
The Organization of the Petroleum Exporting Countries may hold off on cutting production until after Jan. 1, Bloomberg reported.An OPEC spokesperson said Monday the cut may be delayed in an effort to further lobby non-member countries to cut their production levels. Bloomberg said that Norway is slowing negotiations by refusing to specify how much it will trim.
OPEC has said that it will cut production by 1.5 million barrels a day in 2002, but only if major non-member producers cut their production by 500,000 barrels a day. The cartel is scheduled to meet on Dec. 28 to make a final decision about a cut.
The price of crude oil has a direct impact on the price of diesel fuel and gasoline, so it is of vital importance to the trucking industry.
The price of crude oil fell 2.5% to $18.68 a barrel in international trading on Monday, Bloomberg reported. Transport Topics
Vehicle Sales May Slump in 2002
Record vehicles sales since the terrorist attacks, spurred by aggressive incentives from companies, may mean there will be too many cars in 2002 and not enough buyers, the New York Times reported.Analysts say that the interest-free financing deals being offered by General Motors, Ford and Chrysler gave the U.S. economy a short-term boost, but it will hurt the profits of these companies next year.
A sharp drop in sales could lead to production cuts and layoffs. That would also fewer shipments for trucks to move these vehicles from factories to showrooms. Transport Topics
ITT Industries to Close Plants, Cut Jobs
ITT Industries Inc., a manufacturer of electronics, pumps and defense equipment, said Friday that it will close five plants and cut 3,425 jobs, or 8% of the worldwide work force, because of a decline in sales, news services reported.Job cuts 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.
The White Plains, N.Y.-based company said it would take a $100 million restructuring charge, or 72 cents a share, in the fourth quarter, CNN reported. Transport Topics
(Click here for the full press release.)
White House: 300,000 Jobs to be Lost Without Stimulus
The White House Council of Economic Advisers said Saturday that if Congress fails to pass an economic stimulus package, it could result in the loss of another 300,000 jobs and a further decline in consumer confidence, Reuters reported.In addition, the group said U.S. growth could be about 0.5% lower between this quarter and the fourth quarter of 2002.
Meanwhile, Senate Majority Leader Tom Daschle said Saturday that any stimulus plan should provide help to laid-off workers by boosting their benefits, rather than just tax cuts, Reuters said. Transport Topics
Report Finds More People Flying
The Air Transport Association said Friday that 38.7 million passengers flew aboard major U.S. airlines in November, down 19.9% from the same month in 2000 but up about 500,000 from October 2001.Airlines flew 68.2% full on domestic routes in November, down from 70.6% in November 2000, the report also found.
Because passenger airlines can carry cargo in their bellies that is later transferred to trucks, a cutback in service due to reduced passenger demand could disrupt freight hauls. However, it also would mean that some of this cargo would be transferred to trucks.
The report said the major airlines expect to carry 40 million passengers during the holiday season, a slight increase over the 39 million in 2000. Transport Topics
