News Briefs - Feb. 25
- Simon Files for Chapter 11 Reorganizing
- Survey Predicts Slight Rise in Hiring
- Index Shows Business Investment Contracting
- Price of Gasoline Rises 0.3 Cent, Lundberg Says
- Gasoline Prices Affected by Bathrooms?
- California Seeks to Back Out of Energy Deals
- New JoC Owner Sets Organizational Plan
- CF Wins More Genlyte Business
- C.H. Robinson to Name Wiehoff as CEO
- Survey Predicts Slight Rise in Hiring
Simon Files for Chapter 11 Reorganizing
Simon Transportation Services Inc. said Monday that it has voluntarily filed for reorganization under Chapter 11 of the Bankruptcy Code.Bankruptcy papers filed by the Salt Lake City-based truckload carrier indicate that it plans to sell some assets on an "expedited basis" because of a liquidity crunch and lack of sufficient financing for a long-term reorganization.
The company said it would continue to operate as normal and that customers and employees would notice very few changes.
During the reorganization however, Simon said it expects to reduce its tractor and trailer fleets by 40%. When completed, the company would retain 1,500 tractors and 2,200 trailers. Simon also said it would cut jobs as it cut the size of its fleet. The company did not specify how many employees would lose their job.
Based in Salt Lake City, Simon is ranked No. 62 in the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Survey Predicts Slight Rise in Hiring
U.S. companies will be looking to hire a few more workers in the spring, but not enough to recover from recessionary employment levels, the Associated Press reported Monday.An increase in employment could boost consumer confidence and spending, translating to increased revenues for trucking companies.
A telephone survey by Manpower Inc. said that 21% of U.S. firms plan to add jobs between April and June, the AP said.
he quarterly survey was slightly less positive than the analogous survey from last year when 28% of companies said they planned on hiring new employees, the AP said.
Manpower reported that 10% are planning on cutting jobs, with the remaining firms unsure of what they will do during the quarter. Transport Topics
Index Shows Business Investment Contracting
In a sign that the U.S. economy may not be turning around as quickly as some economists think, G7 Group Inc. said that its business-investment index was –79 in February, a slight improvement over the past reading but still showing a contraction in investment.Business investment was a major factor behind the economic expansion in the 1990s, and most analysts believe it will need to improve before a true recovery – which would benefit the trucking industry -- can begin.
The Wall Street Journal reported Monday that this reading was up from –85 in the final months of 2001. Any number less than –35 indicates contraction.
Alan Blinder, a former vice chairman of the Federal Reserve, told the Journal that this report has to temper optimism because the number is decidedly negative.
The G7 Group index is compiled using figures on gross domestic product and data from surveys by the National Association of Business Economics and the National Federation of Independent Business. Transport Topics
Price of Gasoline Rises 0.3 Cent, Lundberg Says
The price of gasoline rose less than a third of a cent per gallon over the past two weeks as abundant supply counterbalanced concerns about potential Middle East conflicts, the Associated Press reported Sunday.Although diesel fuel is usually associated with trucking, a large segment of commercial trucking is carried out in gasoline-burning vehicles.
The weighted price per gallon for all grades and taxes was $1.15 on Friday, up 0.31 of a cent per gallon from Feb. 8, according to the Lundberg survey of 8,000 gas stations nationwide.
Also, the price of self-serve regular averaged $1.12 a gallon, less than a penny higher than two weeks ago, analyst Trilby Lundberg said. Transport Topics
Gasoline Prices Affected by Bathrooms?
Sometimes, the retail price of gasoline has less to do with current crude oil prices and more to do with some of the amenities the service station can offer, the Washington Post reported Sunday.Often times, maintaining clean bathrooms can push up the price of gasoline a few cents per gallon, and other factors such as the number of soft drinks the station sells can alter the price.
But, in high-volume areas, the Post said, raising the price of gasoline too much could cause an immediate loss of business because many consumers aren't always loyal to any one station. Transport Topics
California Seeks to Back Out of Energy Deals
The state of California is petitioning the Federal Energy Regulatory Commission to void some 30 long-term contracts the state signed with energy providers on the grounds that the terms and prices are unreasonable, Reuters reported Sunday.Energy issues directly affect trucking – both as carriers and users of energy products.
The contracts, signed in early 2001, were designed to rescue California from having to pay spot-market prices of $300 per megawatt-hour or more. However, Reuters said, the average price of the contracts -- $88 per megawatt-hour -- is now roughly three times more expensive than the spot market.
A spokesman for Calif. Gov. Gray Davis said the move will give FERC an opportunity to see if it can assure a fair market.
California has for several months been trying to renegotiate the long-term contracts with the sellers, but a lack of progress led to the decision to petition FERC, officials told Reuters. Transport Topics
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New JoC Owner Sets Organizational Plan
The Journal of Commerce moved a step closer to a new spot in the media firmament as its new owner, Commonwealth Business Media Inc., announced Thursday that completion of the first stage of its plan to integrate the transportation business publication into its product line.The Journal of Commerce has covered the trucking, railroad and maritime industries for decades.
Commonwealth purchased the JoC’s assets in November 2001 from The Economist Group.
Alan Glass, president and chief executive officer of Commonwealth, said the company will now be organized into three business units: print magazines, print directories and electronic databases.
Glass will manage the print magazine efforts and assume the position of publisher for JoC Week magazine and the Shipper Group publications. Transport Topics
(Click here for the press release.)
CF Wins More Genlyte Business
Trucking firm Consolidated Freightways has won an expansion of its contract with Genlyte Thomas worth several million dollars, it was announced Thursday.Genlyte is one of North America’s largest manufacturers of lighting fixtures and controls.
The company’s press release said the business involves inbound freight, like steel, aluminum, ballast, parts and materials used in Genlyte operations in more than 30 locations.
Consolidated Freightways, based in Vancouver, Wash., is ranked No. 11 on the 2000-2001 Transport Topics list of the 100 biggest trucking companies. Transport Topics
(Click here for the full press release.)
C.H. Robinson to Name Wiehoff as CEO
C.H. Robinson Worldwide Inc., a provider of multimodal transportation services and logistics solutions, said Friday that President John Wiehoff will be named chief executive officer on May 7.Wiehoff has been with the company since 1992.
Current CEO, D.R. Verdoorn, will remain with Robinson as chairman of the board of directors. Transport Topics
(Click here for the full press release.)
