News Briefs - Dec. 26
The Latest Headlines:
- Overloaded Truck Laws Upheld in South Dakota
- Jobless Claims Down 60,000, Labor Says
- Christmas Storm Blankets Northeast
- Only Small Holiday Spending Increase Predicted
- Durable Orders Down 1.4% in November
- Report: Bush Not Ready to Tap SPR
- Customs Says FAST Program Operational
- Jobless Claims Down 60,000, Labor Says
Overloaded Truck Laws Upheld in South Dakota
The South Dakota Supreme Court ruled unanimously Tuesday that state laws providing stiff penalties for overloaded trucks are constitutional, the Associated Press reported.The decision involves appeals by a trucker caught in Meade County, and three other men who were stopped with heavy loads in Codington County.
n the first case, Anthony Krahwinkel was hauling a large excavator near Sturgis. His rig was found to weigh 166,400 pounds, or 50,900 pounds over the legal limit, AP said.
The court said the fine could stand because the law guarding roads against overloaded vehicles treats all drivers the same in similar circumstances, despite Krahwinkel’s arguments.
It also rejected an argument that the civil penalties are excessive because they must be paid if there is road damage or not, AP said. Transport Topics
Jobless Claims Down 60,000, Labor Says
The number of U.S. workers filing new claims for state unemployment benefits fell by 60,000 to 378,000 in the week that ended Saturday, the largest drop in more than a year, the Labor Department said Thursday.Employment data can have an impact on consumer spending habits and that can affect the trucking industry. Economists had expected claims to fall to 405,000 last week, Bloomberg reported.
In the first week of December claims jumped to an eight-month high after reaching a 21-month low the week before. The Labor Department had attributed the volatility to problems in accounting for the effects of the Thanksgiving holiday, which fell later this year than usual.
The four-week moving average of first-time claims, a less volatile indicator, rose to 404,500 from 402,000 the prior week. Transport Topics
Christmas Storm Blankets Northeast
More than two feet of snow fell Wednesday in parts of upstate New York as a powerful Nor'easter moved up the Atlantic Coast, setting Christmas snowfall records and making travel difficult, the Associated Press reported.The New York State Thruway closed off more than 100 miles Wednesday evening because plows couldn't keep up. Also closed were parts of three interstates in Pennsylvania, which got up to 20 inches in some areas.
All three of New York City's airports were affected, with John F. Kennedy International and LaGuardia airports closing Wednesday evening and flights delayed at Newark Liberty International Airport. Flights were also canceled or delayed at airports in Boston, Albany, N.Y., and Hartford, Conn.
The storm was blamed for at least 18 deaths across the Plains since Monday. It left up to a foot of snow across parts of Oklahoma and temperatures were only in the teens as far south as the Texas Panhandle, AP said.
It moved east Tuesday night, from the Midwest into Pennsylvania, New York and New England, then re-formed Wednesday off the East Coast as a nor'easter. Transport Topics
Only Small Holiday Spending Increase Predicted
Holiday sales in November and December will be up only 1.5% over last year, the Bank of Tokyo-Mitsubishi and UBS Warburg said in its weekly report released Tuesday. That would be the smallest gain since the banks began tracking weekly sales in 1970.Trucking companies that serve retailers count on the holiday shopping season for additional business.
On Monday, toy retailer FAO Inc. said it would close nearly a quarter of its 253 stores as it worked to avoid bankruptcy.
Also Monday, discount chain Target Corp. said sales at stores open longer than a year were "well below plan" for December, Reuters reported. Transport Topics
Durable Orders Down 1.4% in November
The Commerce Department said Tuesday orders for durable goods, items intended to last at least three years, declined 1.4% in November.A drop in spending on durables usually means a decrease in the number of factory shipments.
Analysts were expecting a 0.7% rise in orders, Reuters reported. October was revised downward to a 1.7% gain from an earlier reported 2.4% rise.
The report showed sharp drops in demand for civilian aircraft and autos, which pulled orders for transportation equipment down by 1.6%. Excluding that fall, overall durable goods orders were off 1.3%.
Reuters also noted orders for capital goods excluding defense and aircraft, which is viewed as proxy for business spending plans, fell 2.2%. The drop followed a strong 5.9% October advance.
Computers and electronic products was the only durable goods category that managed to eke out a gain in orders last month, a 0.3% rise that built on a 3.5% October increase. Transport Topics
Report: Bush Not Ready to Tap SPR
The Bush administration is facing renewed requests to free oil from the Strategic Petroleum Reserve, but it has no plans to do so at this time, the Associated Press reported Wednesday.Crude oil is often distilled down into diesel fuel and gasoline, which are heavily used by the trucking industry.
Rep. Billy Tauzin, R-La., urged the administration earlier this week to consider tapping the reserve, saying several refineries along the Gulf Coast are close to running out of oil, AP said.
Meanwhile, the Wall Street Journal reported Thursday, Venezuela is making an effort to restart state-owned Petroleos de Venezuela SA within the next few weeks, even if the strike by oil workers continues. Transport Topics
Customs Says FAST Program Operational
The Customs Service said Monday the joint U.S.-Canada Free and Secure Trade (FAST) initiative is now operational at Detroit, Michigan/Windsor, Ontario; Port Huron, Michigan/Sarnia, Ontario; and in Buffalo, New York/ Fort Erie, Ontario.Customs said in a release on its Web site the program expedites trade through these three locations responsible for processing over 20,000 thousand inbound and outbound commercial trucks each day. This represents more than 40% of trade between the two countries.
FAST is a bilateral initiative between the United States and Canada designed to ensure security by harmonizing their commercial processes for clearance of low-risk commercial shipments at the border.
To be eligible for the FAST lane, a shipment must be destined for an importer enrolled in the U.S. Customs-Trade Partnership Against Terrorism, transported by a carrier enrolled in C-TPAT and driven by a registered driver in possession of a valid FAST card.
Next month, the program will be extended farther west along the U.S.-Canada border, to Blaine, Washington/Douglas, British Columbia, and to the east, at Champlain, New York/Lacolle, Quebec, Customs said. Transport Topics
