News Briefs - Feb. 14
- Court Orders New Elections at Overnite Terminals
- Rail Intermodal Running 3.4% Behind 2001 Pace
- Net Loss Doubles for Cannon Express
- Fed's Guynn Sees Interest Rates Rising in 2002
- United Reports Normal Cargo Bookings Despite Strike Threat
- Bush Offers Global Warming Plan
- Kaiser Aluminum Files for Bankruptcy
- Frozen Food Express Shows Revenue Down, Net Up in 4Q
- Target Logistics Reports Fiscal 2Q Results
- W.Va. Eyes Higher Fees, Diesel Taxes
- Congress Looks for Ways to Aid Postal Service
- Rail Intermodal Running 3.4% Behind 2001 Pace
Court Orders New Elections at Overnite Terminals
The 11-member U.S. Court of Appeals in Richmond Monday ordered new elections at four Overnite Transportation Co. terminals to decide whether employees want to be represented by the Teamsters union.The elections were ordered at centers in Lawrenceville, Ga.; Louisville, Ky.; Norfolk, Va. and Bridgeton, Mo. that had voted down union representation in 1995, but could lead to new elections in seven other locations.
In 1998, an administrative law judge from the National Labor Relations Board ruled that the Richmond-based trucking company should bargain with the Teamsters union.
Since that point, the full board reviewed the decision in 1999, and in 2001, a three-judge panel of the Appeals Court upheld the ruling of both the judge and the full board. Transport Topics
Rail Intermodal Running 3.4% Behind 2001 Pace
Railroad intermodal loadings in the first six weeks of 2002 totaled 954,885 trailers and containers, which was down 3.4% from the 988,677 loaded in 2001, the Association of American Railroads reported late Thursday.Intermodal is the segment of the railroad business most directly competitive with long-haul trucking.
Trailers loaded in the first six weeks of the year totaled 264,740, which was 9.2% down from 2001. Containers, at 690,145 were down 1%.
In the week ended Feb. 9, railroads loaded 48,044 trailers, down 5% from the same week in the previous year and 122,192 containers, which was up 2% from the corresponding week of 2001. Transport Topics
Net Loss Doubles for Cannon Express
Truckload carrier Cannon Express Inc. said Thursday that its net loss for the 2002 fiscal second quarter ended Dec. 31, 2001 doubled to $2.5 million, or 78 cents per share. Revenue for the quarter was $19.8 million, compared with $20.5 in the second quarter of 2001.The Springdale, Ark.-based company said the weak economy and a lower number of shipments by manufacturers caused its net loss to grow.
The company said it has retained the services of an outside consultant to help it increase market share and profitability. Transport Topics
(Click here for the full press release.)
Fed's Guynn Sees Interest Rates Rising in 2002
The Federal Reserve may begin raising interest rates this year if an economic recovery sparks inflation concerns, said Jack Guynn, president of the Federal Reserve Bank of Atlanta.An economic recovery would increase the demand for trucking services.
The non-voting member of the policy-setting Federal Open Market Committee told Bloomberg in an interview Wednesday that the Fed needs to be more nimble than in the past. Trading in interest rate futures shows investors expect the Fed to raise the benchmark overnight bank lending rate a percentage point in 2002, Bloomberg said.
Guynn also said that the exact timing and strength of an eventual recovery in the U.S. economy is not clear. Transport Topics
United Reports Normal Cargo Bookings Despite Strike Threat
Despite a strike threat by its mechanics' union, United Airlines reported normal cargo bookings on Wednesday, the Journal of Commerce reported.A strike could disrupt schedules for the cargo carried in passenger planes, which is carried by trucks in pickup and delivery services.
Negotiators for the two sides are scheduled to resume bargaining on Friday and hope to reach an agreement by mid-March. Transport Topics
Bush Offers Global Warming Plan
President Bush proposed his alternative to the Kyoto global warming pact after a Thursday tour of the National Oceanic and Atmospheric Administration in Silver Spring, Md., news services reported.The plan calls for U.S. businesses, including transportation businesses, such as trucking, to voluntarily track and gradually reduce their output of greenhouse gases, news services reported.
Bush's plan follows what one administration official called a "cap and trade system" where companies must adhere to pollution limits, but can sell and trade pollution credits, Reuters reported.
Under Bush's plan, the government would re-evaluate its success in cutting greenhouse gases in 2012 and consider a new, possibly tougher system, the Associated Press reported. Transport Topics
Kaiser Aluminum Files for Bankruptcy
Kaiser Aluminum Corp. said Wednesday it had lined up $300 million in emergency funding to continue operating as it restructures, a day after it filed for protection from its creditors under Chapter 11 of the federal bankruptcy laws.The Houston-based company, which is a maker of alumina, primary aluminum and fabricated aluminum products, uses trucks to ship its raw materials and finished goods.
Kaiser blamed the weakened economy, depressed prices and asbestos litigation as reasons it needed to file for bankruptcy, the Associated Press reported. Transport Topics
(Click here for the full press release.)
Frozen Food Express Shows Revenue Down, Net Up in 4Q
Despite a $7 million decline in revenue, Frozen Food Express reported Wednesday that net income in the fourth quarter of 2001 increased over the figure for the comparable period of 2000.Net income for the Dallas-based refrigerated trucking company was $84,000 in the fourth quarter of 2001, compared with $67,000 in the previous year.
However, Stoney M. Stubbs Jr., chief executive officer, said the revenue decline came from non-freight operations "the largest piece of which we sold in late December 2001."
He said trucking-related fourth-quarter income actually increased over the previous year by about $1.9 million.
For the full year, the company's reported a loss of $635,000, or 4 cents a share, compared with $1.2 million, or 7 cents a share, in 2000. Both figures include non-freight operations.
Frozen Food Express ranks No. 41 in the 2000-2001 Transport Topics list of the 100 largest trucking companies in the U.S. Transport Topics
(Click here for the press release.)
Target Logistics Reports Fiscal 2Q Results
Freight forwarder Target Logistics Inc. said Thursday that it lost $77,463, or 2 cents per share, in the fiscal second quarter of 2002 ended Dec. 31, 2002.In the same quarter of the previous year, Target claimed losses of $151,249, which in that year was also 2 cents per share. The company kept its operating revenue nearly flat at just over $24 million. In fiscal 2002, Target Logistics had revenues of $24.02 million, down from the $24.7 million in the previous year.
"We continue to see improvement over last year, even in these very difficult times," Stuart Hettleman, president and chief executive officer. "Although revenues are down slightly from last year's second quarter, our operating and net loss have both been reduced."
Target Logistics is based in Baltimore and provides its freight forwarding and logistics services through its wholly-owned subsidiary, Target Logistics Services Inc. Transport Topics
(Click here for the full press release.)
W.Va. Eyes Higher Fees, Diesel Taxes
West Virginia's governor said Monday that increases in weight limits for commercial trucks may be met with higher registration fees and diesel taxes, the Associated Press reported.Gov. Bob Wise also said increased weights should be coupled with aggressive enforcement against violators.
Coal industry backers in West Virginia have argued that failing to increase weight limits to between 120,000 and 140,000 pounds would devastate the industry, the AP said.
Wise told AP that he would look at an increase in user fees, among other considerations.
Commercial vehicle owners in 2000 contributed $25.6 million in registration fees, the AP said. Transport Topics
Congress Looks for Ways to Aid Postal Service
Democrats and Republicans are trying to craft legislation to help the U.S. Postal Service fare better against competitors and get back on its feet following a drop in business after the Sept. 11 terrorist attacks and anthrax scare, Bloomberg reported Wednesday.One possible outcome is that the service would be allowed to raise rates on first-class mail and magazines every year. The cost of a first-class stamp will increase to 37 cents on June 30, Bloomberg said.
Still, the Postal Service, which is in the process of cutting administrative, transportation and labor costs, faces a projected deficit of at least $3 billion this year.
Congress may also give the service the right to negotiate discounts with large mailers as another way to increase business. Transport Topics
