News Briefs - Jan. 25
- Intermodal Loads Down 2.8%, AAR Reports
- UPS Gets Taiwan Customs License
- Oregon Judge Dismisses Complaint From One-Armed Trucker
- States to See Cutback in Federal Highway Funds
- Crude Oil Price Rises on Hopes of U.S. Recovery
- Yellow Blames Softening Economy in Earnings Drop
- States Flags Fly Again at ATA Headquarters
- Gateway, Others Cutting Jobs
- Trucks Must Stay Right Entering Utah Highways
- Tower Auto Sees Higher Revenues in 4Q
- UPS Gets Taiwan Customs License
Intermodal Loads Down 2.8%, AAR Reports
Continued weakness in trailer loadings pulled intermodal loadings in the first three weeks of the year on the nation's railroads 2.8% below those in the same period last year, the Association of American Railroads reported Friday.Intermodal is the segment of the railroad business most directly competitive with long-haul trucking, although the service uses trucks for short-haul pick-up and delivery service.
The first three weeks saw a total of 453,976 trailers and containers loaded, compared to 467,053 in 2001. However, trailer loadings dropped 10% while container loadings gained 0.2%.
For the week ended Jan. 19, trailer loadings totaled 47,024, which was 2.9% below the 48,430 loaded in the corresponding week of 2001. Container totaled 119,842, which was 2.6% above the 116,842 loaded in 2001.
UPS Gets Taiwan Customs License
In a move that will likely speed delivery of packages coming into and out of Taiwan, United Parcel Service has become the first logistics provider to gain a license to handle clearance procedures previously only conducted by a Taiwanese agency, the Journal of Commerce reported.The license is subject to UPS passing a government screening procedure, a customs spokesman said. Customs intends to expand the system with more companies as long as they first meet the requirements, JOC said.
Licensees must have a computerized management system linked to the bureau and equipped with closed-circuit surveillance. The TV tape must be preserved for two years, the customs spokesman said.
UPS is ranked No. 1 on the 2000-2001 Transport Topics 100 list. Transport Topics
Oregon Judge Dismisses Complaint From One-Armed Trucker
A judge in Coos County, Ore. has dismissed a complaint from a one-armed truck driver who had been banned from driving unless he agreed to wear his prosthesis, the Associated Press reported Friday.Scott Cook, who lost his left arm below the elbow as a child, has been driving a truck for 20 years without an accident, AP said.
However, the judge ruled that Cook didn’t have enough evidence to prove that a motor carrier enforcement officer was acting with malice when he cited Cook for not wearing the prosthesis in January 2001. A federal law requires drivers to wear a prosthesis.
Cook said he will appeal the decision and is currently training for his commercial pilot’s license. He doesn’t need a prosthesis to fly. Transport Topics
States to See Cutback in Federal Highway Funds
State road-building budgets have been hit hard by a drop in truck sales, along with smaller-than-expected receipts from fuel taxes, the Washington Post reported Friday.If states are not able to fix old or damaged roads and bridges, it could lead to more congestion and accidents, resulting in delayed truck deliveries and higher costs for trucking.
The U.S. Treasury Department is estimating that states will lose $9.1 billion in federal transportation money next year. This is because the government helps pay for road projects through taxes on gasoline and truck and tire sales. The money is put into a trust fund and distributed states based on the amount of gasoline sold and other factors.
Also if more gasohol, a blend of gasoline and ethanol, is sold in the United States, there will be less money coming in because it is taxed at a lower rate than gasoline.
The Post story concluded that many states may be forced to delay highway projects or eliminate many of the projects deemed not totally necessary. Transport Topics
Crude Oil Price Rises on Hopes of U.S. Recovery
The price of crude oil jumped to $19.60 a barrel in international trading Friday, after Federal Reserve Chairman Alan Greenspan's positive comments before Congress, Bloomberg reported.The price of crude oil impacts the cost of other fuels, including diesel and gasoline, making it very important to the trucking industry.
The price of oil rose 47 cents, or 2.5%, on the International Petroleum Exchange in London, Bloomberg said.
Greenspan said that, because businesses were reducing their inventories, the U.S. economy may receive a significant boost. This could lead to more spending, more freight shipments and greater demand for oil, thus pushing the price up. Transport Topics
Yellow Blames Softening Economy in Earnings Drop
Pointing to an economy that "softened more each successive quarter," Yellow Corp. late Thursday reported a net income of $4.4 million, or 18 cents a share, in the fourth quarter of 2001, compared with $17.7 million, or 74 cents a share, in the comparable period of 2000.For the full year, the Overland Park, Kan.-based company, which has both truckload and less-than-truckload operations, reported a net income of $22.7 million, or 92 cents per share. In the preceding year, the comparable figures were $61.8 million, or $2.49 a share.
Despite economic conditions, Bill Zollars, chairman, president and chief operating officer, said that "many of our services experienced year-over-year growth."
Zollars cited Exact Express, a time-definite service, which saw a 6% increase in revenue, and Yellow Global, which grew 23%.
Yellow's consolidated operating revenue for the full year was $3.3 billion, down 8.7%. Operating income, excluding unusual items, was $69.4 million, down from $140.4 million in 2000.
Yellow is ranked number No. 5 in the 2000-2001 Transport Topics 100. Transport Topics
Click here for the press release.)
States Flags Fly Again at ATA Headquarters
American Trucking Associations last week revived a tradition of flying state flags in front of its headquarters in recognition of the role each state plays in the national federation.Each week, ATA will fly a state flag below Old Glory on the pole in front of its Alexandria, Va., headquarters, rotating them in order of admission to the union.
The week of Jan. 14 began with the raising of the Delaware flag.
"What better way could I send a message that [the state associations] are vitally important?" said ATA President William Canary. "What can I do to pay respect to their strength? It's a message of thanks and unity."
The tradition began in 1963 when ATA was located in downtown Washington, D.C., as a means of fostering better relationships among ATA and the state affiliates.
Each week, a senator or House member from that week's honored state would participate in a flag-raising ceremony. Pictures were distributed to media in his or her home state or district.
The practice stopped when ATA relocated to Virginia in 1984.
"One of my missions is to bring the individual states together and unite the federation in 2002," Canary said. This is a way "to do it more than just in words, but in actions." Transport Topics
Gateway, Others Cutting Jobs
Despite recent signs that the U.S. economy is improving, several major corporations said Thursday they plan to eliminate jobs in an attempt to cut costs.Increased job cuts can be a bad sign for the economy and trucking industry because they can affect industrial production and consumer confidence. If factories reduce production or consumers spend less, it could lead to fewer shipments for trucking companies.
- Gateway Inc., the nation's fourth-largest computer maker, said it will eliminate 2,250 jobs and close 19 stores and several offices as it struggles with reduced industry sales and a shrinking share of the U.S. market.
- Worthington Industries Inc., which is involved in processing steel, metal framing and pressure cylinders, said it is cutting 500 jobs, or 7% of its work force, by shutting down or reducing operations at eight plants.
- Consumer products giant Procter & Gamble Co. said it plans to cut 1,440 jobs at its recently acquired Clairol haircare unit. Transport Topics
Trucks Must Stay Right Entering Utah Highways
Changes in right lane travel requirements for permitted vehicles went into effect Jan. 1 in Utah, according to the Utah Department of Transportation. Those include:When entering a freeway or interstate highway, all commercial vehicles will stay in the right lane of traffic until attaining speeds necessary to safely merge left without interfering with the normal flow of traffic or creating a slow-down or hazard.
Permitted divisible trailer combinations are restricted from traveling in the high occupancy vehicle car pool lane at any time. In addition, they are restricted from traveling in the farthest left lane when there are three or more lanes of travel in the direction traveled.
Permitted nondivisible vehicles must be driven in the farthest right lane of traffic, except where that lane must exit. When passing another vehicle, they must be driven to the immediate left of the farthest right lane and return to the rightmost lane as soon as feasible.
Utah Special Transportation permits are subject to immediate confiscation and revocation for violation of these lane restrictions and citations may be issued. Transport Topics
Tower Auto Sees Higher Revenues in 4Q
Vehicle parts manufacturer Tower Automotive Inc. announced Friday that its fourth-quarter revenue was $639 million, up 2% from the same quarter in 2000.The company said it had net income of $3 million, or 7 cents per share, in the quarter, down from $15 million, or 31 cents per share in 2000.
For the full year, Tower had revenues of 2.47 billion, down 3% from the $2.53 billion the company posted in 2000. Its net income was also down to $32 million, or 69 cents per share, from $98 million or $1.81 per share.
The Grand Rapids, Mich.-based company also said that it paid down $320 million in debt in 2001, $44 million of that coming in the fourth quarter. Transport Topics
(Click here for the full press release.)
