News Briefs - Jan. 3
The Latest Headlines:
- Intermodal Traffic at Record Levels in December
- Construction Spending Increased in November
- U.S. Xpress Announces Subsidiary Name Change
- Northeast Braces for More Snow
- Capital Spending May Drive 2003 Rebound
- OPEC Oil Price Over Target for 12th Straight Day
- Gas Prices Rise in Southwest
- Construction Spending Increased in November
Intermodal Traffic at Record Levels in December
The amount of cargo carried by the intermodal segment of the rail industry rose 9.7% in December to cap a record yearly total of 9.35 million loadings, the Association of American Railroads said Thursday. It was the sixth record in the last seven years, AAR said.In the final month of 2002, loadings increased 9.7% over the previous year’s total and for the final week, ended Dec. 28, loadings rose 15.8% versus the same period last year.
In that last week, container loadings surged 18.1% while trailer loadings grew 9.4%, AAR said.
Construction Spending Increased in November
U.S. construction spending grew by 0.3% in November – its third straight increase, the Commerce Department said Friday.Increases in spending on the construction of offices, homes and highways can be a boon to the trucking industry, which haul both materials and equipment for such projects.
The total spent on construction in November – $843.2 billion – was the most spent since May, Commerce said. Transport Topics
U.S. Xpress Announces Subsidiary Name Change
U.S. Xpress Enterprises Inc. said Thursday that it changed the name of its CSI/Crown unit to Xpress Global Systems Inc. effective Jan. 1.The company said that the name change “reflects the growth and diversification of services provided by the CSI/Crown subsidiary, which includes the airport-to-airport expedited service offered through Dedicated Xpress Services Inc.”
The new unit, Xpress Global Systems, will provide the services formerly offered by CSI/Crown, Dedicated Xpress Services Inc. and Xpress Direct. Xpress Global providing transportation, warehousing and distribution services to the floor covering industry, in addition to airport-to-airport transportation services.
U.S. Xpress is ranked No. 25 on the 2002 Transport Topics 100 listing of the largest trucking companies in the United States and Canada. Transport Topics
(Click here for the full press release.)
Northeast Braces for More Snow
New York and New England began bracing themselves for a major January snowstorm that was gathering strength over the Central Plains Friday, Bloomberg reported.The storm was expected to deliver up to two feet of snow to some parts of upstate New York and New England, and drop a wintry mix of ice and freezing rain on parts of lower New York and New Jersey.
Extreme winter weather can disrupt the operations of transportation companies both in the air and on the ground.
The National Weather Service said in a release that it expected the storm to be similar in nature and effect to the storm that buried the region on Christmas Day.
The service issued a winter weather advisory for New York City, which had started getting freezing precipitation on Friday that was expected to change over to snow by Saturday morning, Bloomberg reported. Transport Topics
Capital Spending May Drive 2003 Rebound
Economists think that an increase in capital spending is in the cards for 2003, and that increase in spending could drive a recovery for the U.S. economy, the Wall Street Journal reported Friday.Capital spending can drive demand for trucking services as companies order large pieces of factory and office equipment that need delivering.
One company the Journal cited as likely boosting its budget for 2003 capital spending was truckload carrier Schneider National Inc., which said it plans on spending 25% to 50% more this year to upgrade its computer and information systems. Transport Topics
OPEC Oil Price Over Target for 12th Straight Day
The price of oil stayed above the target range established by the Organization of Petroleum Exporting Countries for a 12th day in a row, Bloomberg reported Friday.The cartel’s benchmark oil price was $33.05 Thursday, up from the $29.85 oil traded at on Dec. 31, Bloomberg said. If oil prices remain above the $22-$28 range that the cartel has set, OPEC would begin pumping more crude.
Recent fears about a possible war in Iraq and the prolonged strike in Venezuela have pushed oil prices to their current levels. Increasing crude oil prices can push the prices of gasoline and diesel fuel higher as well.
In trading on the New York Mercantile Exchange early Friday, crude oil prices rose 38 cents to $32.23. The price of crude oil has risen nearly $1 so far in 2003 after increasing a total of $11 in 2002, Bloomberg reported. Transport Topics
Gas Prices Rise in Southwest
In the heavily traveled southwestern United States, gasoline prices rose to start the new year, two watchdog groups said Friday.AAA Texas said that the average price of gasoline in the Lone Star State rose five cents to $1.40 per gallon over the last week.
During the same timeframe, the Automobile Club of Southern California said that gas prices in the region were as high as $1.644 a gallon in some areas.
Gasoline, while not the major fuel of the trucking, is important to some segments of the industry. Transport Topics
(Click here for the full press release from AAA Texas.)
(Click here for the full press release from the Automobile Club of Southern California.)
