News Briefs - Feb. 28
The Latest Headlines:
- Group Drops Purchase Attempt of CF
- Atlas Air Reports Higher 4Q Revenue
- University of Michigan Sentiment Index Falls in February
- Oil Prices Steady On Disarmament Speculation
- OPEC Says Increased Production Can't Stem Rising Prices
- Airfreight Totals Rise in January
- Pilots Union Asks Congress for Industry-wide Relief
- Pilot Acquistion of Williams TravelCenters Becomes Official
- Chicago Purchasing Manager Index Falls to 54.9 in February
- Morgan Resigns from STB
- Atlas Air Reports Higher 4Q Revenue
Group Drops Purchase Attempt of CF
A holding company set up to purchase Consolidated Freightways Corp. dropped its half-billion dollar bid to acquire the bankrupt less-than-truckload company, the Fort Worth Star-Telegram reported Friday.The attempt by Rollin' International Inc. to purchase CF was aborted because the group could not arrange financing for the deal, the paper said.
Rollin' also cited increasing fuel costs and the continuing sale of Consolidated’s assets as additional reasons for aborting the purchase. Transport Topics
Atlas Air Reports Higher 4Q Revenue
Airfreight company Atlas Air Worldwide Holding Inc. said Friday that its fourth-quarter revenue rose $129.9 million to $413.7 million from the year-earlier period – mostly due to the inclusion of Polar Air Cargo’s revenues and increase military and commercial charter demand.During the final three months of 2002, the company said that demand created by the labor disruptions at ports on the West Coast and an increase in military charters as the U.S. prepares for war helped bolster the Purchase, N.Y.-based business.
Atlas also said in its statement that is continuing to cooperated with a Securities and Exchange Commission investigation into the company’s announcement in October that it would have restate its financial results from 2000 and 2001.
Atlas Air Worldwide is the parent company of air freighter company Atlas Air Inc. and of Polar Air Cargo Inc. Transport Topics
(Click here for the full press release.)
University of Michigan Sentiment Index Falls in February
The University of Michigan said Friday that its index of consumer sentiment fell in February to 79.9 from 82.4 in the prior month.The index was revised slightly upward from the 79.2 that had been reported earlier in the month, but it was not enough pull even with the index’s January level.
Consumer confidence is an important predictor of consumer and business sales, both of which are important drivers of demand for trucking services. Transport Topics
Oil Prices Steady On Disarmament Speculation
The price of crude oil stayed nearly unchanged in early trading Friday after reports surfaced that Iraq may begin destroying missiles that violate United Nations rules, Bloomberg said.The price of crude dipped 5 cents to $37.15 in early trading on the New York Mercantile Exchange Friday. On Thursday, the price of oil on the Nymex for April delivery rose as high as $39.99 a barrel, Bloomberg said.
The president of the Organization of Petroleum Exporting Countries said that the cartel will consider boosting its production at its meeting in March, Bloomberg reported. The discussions are being prompted, Abdullah bin Hamad al-Attiyah told Bloomberg, by an emerging oil shortage in the United States.
Earlier in the week, industry and government reports showed significant declines in U.S. oil inventories. An unusually cold winter and a strike in Venezuela have combined to sap stockpiles of crude oil and fuels like diesel and gasoline. Transport Topics
OPEC Says Increased Production Can't Stem Rising Prices
Officials with the Organization of Petroleum Exporting Countries told the Wall Street Journal that increased oil production will not be able to stem the tide of rising prices in the face of geopolitical events, specifically the potential war in Iraq and the fallout from the strike in Venezuela.An unnamed senior official from a key OPEC member told the paper that the group would almost certainly move to increase production, and possibly might consider removing all of the cartel’s production restraints.
The official said that currently traders and speculators on the New York Mercantile Exchange have more influence over prices than OPEC, the Journal reported.
Oil prices have been pushed higher in recent weeks by an unusually cold winter in the United States, a supply-crimping strike in Venezuela and the possibility of a war in Iraq. Transport Topics
Airfreight Totals Rise in January
The total amount of domestic air cargo carried by U.S. airlines rose 4.5% the Air Transport Association reported Friday.Trucking companies often carry airfreight to and from airports.
In the first month of 2003, carriers hauled 941.8 million revenue ton-miles of airfreight, compared to the 901.5 million revenue ton-miles they hauled in same month last year.
Freight and express shipments rose 6% to 865.5 million revenue ton-miles, but mail shipments declined 10.4% to 76.3 million, the association said.
International shipments of airfreight rose 9.6% in January to 874.5 million revenue ton-miles. System wide, U.S. carriers hauled 1.82 trillion revenue ton-miles of airfreight – up 6.9% from what it hauled in January 2002. Transport Topics
Pilots Union Asks Congress for Industry-wide Relief
The Allied Pilots Association said that the airline industry needs congressional intervention to keep from “collapsing.”Capt. John Darrah, president of APA called the problems facing the industry a "national crisis, making airline employees the first casualties in the war on terrorism."
The vice president of the union, Capt. Bob Ames, said that the industry needs immediate, temporary relief measures from the government to keep the airlines flying. Ames said that the industry "vital to our national security and critical to all aspects of our economy."
Both men said in a release that the troubles the industry has faced since Sept. 11, 2001.
Airfreight is often hauled in passenger planes as well as by cargo-only airlines.
(Click here for the full press release.)
Pilot Acquistion of Williams TravelCenters Becomes Official
Pilot Travel Centers LLC’s acquisition of 60 Williams Travel Centers Inc. outlets became final Thursday, official from both companies said.The 60 locations are in 15 states, mostly in the Midwest, Southeast and Southwest, the release said.
After the incorporation of the Williams TravelCenters’ outlets, Pilot will have combined operations in 295 locations in 37 states.
Based in the Findlay, Ohio, Pilot Travel Centers is a joint venture between Marathon Oil Corp. and Ashland Inc. Transport Topics
(Click here for the full press release.)
Chicago Purchasing Manager Index Falls to 54.9 in February
The National Association of Purchasing Management-Chicago said Friday that its business barometer fell to 54.9 in February from 56 in January.With NAPM indexes, figures over 50 indicate growth.
The group said that it saw increases in some of its component indexes, including new orders, prices paid, employment and inventories.
The NAPM-Chicago indexes account for business activity in the heavily industrial Midwest. Transport Topics
Morgan Resigns from STB
Linda Morgan, the former chair of the Surface Transportation Board, said she will leave the railroad-regulating body entirely on April 8, the Washington Post reported Thursday.Morgan, who had headed the STB since its inception in 1995, was chairwoman of the three-person committee until December when Roger Nober was named as her replacement, the Post said. Prior to chairing the STB, Morgan had been the head of the board’s forerunner – the Interstate Commerce Commission.
Morgan’s departure had been expected, the Post said, but will come nearly nine months before her term expires.
Morgan said she will not decide on a future career until after she leaves the board, the Post reported. Transport Topics
