News Briefs - Jan. 6
The Latest Headlines:
- C.H. Robinson Settles Lawsuit
- Mitsubishi Spins Off Truck Division
- Venezuela Fails to Revive Oil Production
- Hours of Service Plan Under Review
- Service Sector Continues to Expand, ISM Says
- Mexican Truck Negotiations Continue
- Mitsubishi Spins Off Truck Division
C.H. Robinson Settles Lawsuit
Logistics provider C.H. Robinson Worldwide announced on Friday that it has settled a wrongful death lawsuit in Illinois for $4.25 million.Based in Eden Prairie, Minn., Robinson was named as a defendant in the civil suit, the company said, because a trucking company hired by Robinson was involved in the fatal, multi-vehicle accident.
The company said it will take an after-tax charge of $4.25 million or 3 cents a share against fourth-quarter earnings. Robinson, in turn, said it has filed suit against two of its insurance carriers asking for compensation.
(Click here for the full press release.)
Mitsubishi Spins Off Truck Division
Japanese automaker Mitsubishi Motors Corp. made its truck and bus business a separate company Monday to focus on turning around its troubled car operations, the Associated Press reported.The new company, Mitsubishi Fuso Truck and Bus Corp., will be 43% owned by DaimlerChrysler AG, which owns 37.3% of Mitsubishi Motors.
Mitsubishi Motors will hold 42% of Mitsubishi Fuso. The change will allow Mitsubishi Fuso to take advantage of DaimlerChrysler's technology and cut costs by expanding global purchasing and working together on research, AP said.
Wilfried Porth from DaimlerChrysler is the new president and chief executive at Mitsubishi Fuso, while Takashi Usami, former Mitsubishi Motors vice president, became chairman. Transport Topics
Venezuela Fails to Revive Oil Production
Venezuela has failed to boost oil output over the past 10 days as planned because strikers seeking to depose President Hugo Chavez disrupted tanker loadings, Bloomberg reported Monday.Oil output is unchanged since Dec. 28 at 600,000 barrels a day, a fifth of levels before a national strike began early last month, Petroleos de Venezuela SA President Ali Rodriguez told Bloomberg. The oil company has been unsuccessful in replacing strikers, hiring just 15 employees during the walkout.
In addition, international shippers refuse to dock tankers because of safety concerns, Bloomberg noted.
However, brent crude oil for February delivery fell as much as 57 cents to $30.20 a barrel on the International Petroleum Exchange in London as other members of the Organization of Petroleum Exporting Countries vowed to increase production to offset the Venezuelan losses. Transport Topics
Hours of Service Plan Under Review
A plan to reform federal regulations for commercial drivers' hours of service is under review by the Office of Management and Budget, the Federal Motor Carrier Safety Administration said.MCSA submitted its plan for review Jan. 3.
OMB can take up to 90 days to review the plan and supporting data, including a cost-benefit analysis.
FMCSA would not comment on the plan that was turned in about two weeks after FMCSA administrator Joseph M. Clapp left office Dec. 18. Secretary of Transportation Norman Y. Mineta had expected Clapp to complete the plan before he left office, concluding his 14-month tenure.
OMB has the power to clear the plan for publication in the Federal Register, return it to FMCSA for further work or allow it be withdrawn by FMCSA.
The rule is expected to have significant impact on the trucking industry, since it will affect the supply chain. John Wislocki
Service Sector Continues to Expand, ISM Says
Growth in the service sector continued for the 11th straight month during December, the Institute of Supply Management's services index showed, but at a slower pace, Bloomberg reported.The services economy, of which trucking is a part, is the largest segment of the U.S. economy.
The ISM index was 54.7 in December, down from a six-month high of 57.4 in November, but still above the break-even mark of 50. Bloomberg said analysts had been expecting a reading of 55.5.
The index measures activity in the financial services, construction, retail and other non-manufacturing sectors. Transport Topics
Mexican Truck Negotiations Continue
Negotiations continued last week between the United States and Mexico over how to conduct safety audits on Mexican trucks, and no Mexican trucking companies had yet been granted open access to U.S. roads, Federal Motor Carrier Safety Administration spokeswoman Suzy Bohnert told Transport Topics Jan. 2.In November, President Bush had directed the Department of Transportation to take steps to lift the U.S. moratorium on Mexican trucks operating throughout the United States beyond border commercial zones.
Bohnert said there was still no timetable as of last week for when the safety audits may begin, which in turn would determine when the Mexican truck access takes effect.
Last month, Mexico’s transportation secretary said that country should ban U.S. trucks from its roads if the United States does not remove “discriminatory conditions” for Mexican truck access. Transport Topics
