News Briefs - Feb. 9
The Latest Headlines:
- EIA: Diesel to Average $1.95 This Year
- UPS Expanding Logistics Presence in China
- December Wholesale Inventories Rise 0.9%
- P.A.M. Reports Higher Fourth-Quarter Profit
- C.H. Robinson's Profits Rise in Fourth Quarter
- Hub Group's Earnings Increase Sharply
- Bush Budget Includes St. Lawrence Seaway Tolls
- UPS Expanding Logistics Presence in China
EIA: Diesel to Average $1.95 This Year
Diesel prices will average $1.95 a gallon in 2005, up 8 cents from a previous forecast, the Energy Information Administration said.In its “Short-Term Energy Outlook” released Tuesday, EIA said diesel’s average price for 2005 would be 14 cents higher than 2004’s average.
EIA, part of the Energy Department, reported an average price of $1.983 per gallon on Monday in its weekly survey of filing stations, down 0.9 cent from the previous week. Transport Topics
UPS Expanding Logistics Presence in China
UPS Inc. said Wednesday it opened three new warehouse and distribution centers in China and planned to open another 20 in that country over the next two years.The three new centers, located near major manufacturing hubs in Shanghai, Suzhou and Futian, brings to more than 40 the number of logistics facilities already operated in China by UPS’ Supply Chain Solutions unit.
The company said in a statement it plans to open 10 facilities in China this year and 10 more in 2006.
UPS is No. 1 in the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. Transport Topics
December Wholesale Inventories Rise 0.9%
The Commerce Department said Wednesday that U.S. wholesale inventories rose 0.4% in December to $328.3 billion.The level was less than forecast and was limited by rising sales of automobiles, machinery and computer equipment, Bloomberg reported.
Commerce also said wholesale sales jumped 0.9% in December, bringing the total for the year to 13.8%, the highest level ever.
holesalers had enough supply on hand to last 1.14 months at the current sales pace, the lowest figure since May.
Wholesalers account for about one-fourth of all business inventories. Retailers and factories account for the rest. Transport Topics
P.A.M. Reports Higher Fourth-Quarter Profit
Truckload carrier P.A.M. Transportation Services Inc. said late Tuesday its net income for the fourth quarter was $1.8 million or 16 cents per share, compared with $1.7 million or 15 cents a year earlier.Operating revenues excluding fuel surcharges rose 4.4% to $77.5 million, the company said in a statement.
For the year the company earned $10.7 million or 94 cents a share, down from $11.5 million or $1.01 in 2003. Operating revenue excluding fuel surcharges rose 5.4% to $309.5 million.
P.A.M. said fuel price increases and less efficient exhaust-gas recirculation engines raised operating costs to 21.75 cents a mile in the quarter, up from 19.66 cents a year earlier, but that it expected better freight rates and utilization would contribute to improved earnings.
P.A.M. is ranked No. 65 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
C.H. Robinson Profits Rise in Fourth Quarter
Logistics provider C.H. Robinson Worldwide Inc. reported net income for the fourth quarter was $38.6 million or 44 cents per share, up from $27.8 million or 32 cents a year earlier.Total transportation gross profits increased 34.2% to $161.5 million, while truck transportation gross profits rose 37.6%, the company said.
Fourth-quarter gross revenue rose 29.5% to $181.2 million.
“Freight demand remained strong through the end of the year, which enabled us to have another quarter of exceptional growth,” said John Wiehoff, chief executive officer.
For the full year, C.H. Robinson earned $137.3 million or $1.59 a share, compared with $107.4 million or $1.25 in 2003. Transport Topics
Hub Group Earnings Increase Sharply
Intermodal and logistics firm Hub Group Inc. reported fourth-quarter net income of $7 million or 66 cents a share, up from $2.6 million or 33 cents a year earlier.Fourth-quarter revenue rose 7.9% to $387.4 million, the company said in a statement. It attributed the rise to price and fuel surcharge increases.
Intermodal revenue for the quarter rose 3.2% to $270.3 million, truckload brokerage revenue rose 15.6% to $61.6 million and logistics revenue increased 32.4% to $39 million, the company said.
For the full year Hub Group earned $17.3 million or $1.84 per share, compared with $8.4 million or $1.07 the previous year.
The company projected earnings for 2005 would be $2.50 to $2.67 per share, excluding a stock split or buy-back. Transport Topics
Bush Budget Includes St. Lawrence Seaway Tolls
The Bush administration’s 2006 budget request includes about $8 million in new tolls on freight ships passing through the St. Lawrence Seaway, with a long-term goal of generating twice that to eliminate taxpayer funding, the Associated Press reported.U.S. officials have not charged tolls to commercial shippers on the seaway's lock system since 1986, but Canadian authorities, who operate the system jointly with the U.S., charge fees, AP said.
The 2,000-mile seaway extends from Gulf of St. Lawrence in eastern Quebec through western end of Lake Superior at the ports of Duluth, Minn., and Superior, Wis.
The move comes amid a debate over the future of the seaway, for which the shipping industry has been pushing for a major widening and modernization project, which would likely cost billions of dollars, AP reported.
According to the U.S. Army Corps of Engineers, Great Lakes ports move more than 200 million tons of cargo a year, providing about 67,000 jobs and generating about $5 billion annually for the freight industry, which includes trucking, AP said. Transport Topics
12493
