News Briefs - June 11
The Latest Headlines:
- Mexican Pig Farmers Block World Trade Bridge
- L.A. Seeks Backing For Transportation Projects
- Air Cargo at Memphis Airport Up 58% in Year
- R.I., Idaho Show Strongest Growth in 2000
- Freightliner May Post Profit
- Crude Oil Growth to Slow in 2002, OPEC Says
- Amtrak Board OKs Reorganization
- U.S. Storage, Shipping Costs Reach Record Lows
- L.A. Seeks Backing For Transportation Projects
Mexican Pig Farmers Block World Trade Bridge
More than 1,000 trucks were stuck in heavy traffic Monday as Mexican pig farmers blocked the World Trade bridge between Nuevo Laredo, Mexico, and Laredo, Texas, the Associated Press reported.The blockade, which lasted for more than five hours, was aimed at having the Mexican government offer them the same subsidies that U.S. farmers receive.
The protest ended after Mexican negotiators agreed to meet with the farmers, AP said. Transport Topics
L.A. Seeks Backing For Transportation Projects
Transportation officials in Los Angeles County have invited public comment on a broad program of freeway and public transportation improvement suggested in the attempt to keep pace with the area's rapid population growth, the Los Angeles Times reported.Trucking generally benefits from improvements in an area's transportation infrastructure.
The Times said population in the Santa Clarita and Antelope valleys is expected to grow by more than 670,000 over the next three years.
The projects being discussed include widening several freeways for carpool lanes and regular traffic lanes to the Golden State Freeway and the Antelope Valley Freeway, the Metropolitan Transportation Authority told the Times.
The projects could be completed by 2010, the MTA said. Transport Topics
Air Cargo at Memphis Airport Up 58% in Year
Air cargo volume at Memphis International Airport in Tennessee was up 58.4% through the first four months of 2002, compared with the same period last year, a spokesman said Tuesday.Trucks transfer cargo to and from airports.
The increase in volume is mainly due to a contract between FedEx Corp. and the U.S. Postal Service, said Larry Cox, president and chief executive officer of the Memphis-Shelby County Airport Authority. FedEx is based in Memphis.
Excluding this deal, other air cargo volume has remained steady, Cox said.
FedEx is ranked No. 2 in the 2000-2001 Transport Topics 100 list of the largest U.S. trucking companies. Transport Topics
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R.I., Idaho Show Strongest Growth in 2000
The economies of Rhode Island and Idaho grew faster than those of any other state during 2000, a report by the U.S. Department of Commerce said Monday.Trucking is especially sensitive to economic changes, and local and regional carriers are particularly sensitive to changes in their sphere of operation.
The department's report on gross state products, which measures the amount of goods and services produced in a particular state, showed Rhode Island leading the way in 2000 with a 10.7% rate of growth. Idaho was a close second, growing by 8.3% during the year, the report said.
The state economies of Alaska, Louisiana and Mississippi showed the weakest performances during the year. By shrinking 2.9% and 2.7%, respectively, Alaska and Louisiana were the only two states to have negative growth in 2000, the report said.
Nationwide, gross state products rose an average of 4.5% in 2000, compared to an increase of 4.1% for the gross domestic product, the benchmark for the national economy. Transport Topics
Freightliner May Post Profit
DaimlerChrysler AG said Tuesday that its U.S. truck unit, Freightliner, has cut costs more dramatically than expected and the company is likely to post a profit for fiscal 2002, Agence France Presse reported.Manfred Gentz, Daimler's chief financial officer, told an investors' conference that Freightliner will cut costs by more than the $450 million originally projected.
Last October, Daimler unveiled a restructuring plan that included a shutdown of three Freightliner plants and 2,700 job cuts so that the Portland, Ore.-based company could return to profitability, AFP said. Transport Topics
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Crude Oil Growth to Slow in 2002, OPEC Says
The Organization of Petroleum Exporting Countries predicted Monday world demand for crude oil will only rise by 400,000 to 500,000 barrels per day in 2002, Bloomberg reported.Crude oil is refined as gasoline and diesel fuel, making it important to the trucking industry.
OPEC said although demand for oil will likely rise as the year progresses, uncertainty over the U.S. economy will keep it below prior years. The price of oil is currently within the cartel's preferred price range of $22-$28 per barrel.
Daily demand rose by 1.6 million barrels in 1999 and 700,000 in 200,000. The Sept. 11 terrorist attacks caused the gain in 2001 to be only 100,000 barrels. Transport Topics
Amtrak Board OKs Reorganization
Amtrak's board of directors Monday approved a plan aimed at easing record losses and securing $205 million loan, Bloomberg reported.Although primarily a passenger railroad, Amtrak competes with trucking by hauling some time-sensitive freight.
The units of Amtrak that run its Northeast, West Coast and other intercity trains will be eliminated. The rail line will also trim the number of vice presidents in its management structure from 84 to no more than 20, Bloomberg reported.
The move will centralize decisions in Washington by consolidating units, created in 1994, that had operated in Chicago, Philadelphia and Oakland, Calif., Bloomberg said.
Amtrak did not say how much it expected to save with the changes. The railroad needs to secure the $205 million loan to stay afloat until Sept. 30. After that date, Amtrak will receive no more federal funding, Bloomberg said. Transport Topics
U.S. Storage, Shipping Costs Reach Record Lows
The cost of shipping and storing cars, retail goods and other merchandise fell to 9.5% of the U.S. gross domestic product in 2001, a record low according to a study done by Cass Information Systems Inc.Total costs for shipping and storage declined to $970 billion from $1.03 trillion in 2000, Bloomberg reported. The study cited the effect lower inventories have on interest expenses as the reason for the drop, Bloomberg said.
Cass Information, based in Bridgeton, Mo., provides payment services for freight companies, Bloomberg reported.
Robert Delaney, vice president of Cass, said that his company has conducted the survey each of that past 13 years. Transport Topics
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