News Briefs - June 17
The Latest Headlines:
- Auto Parts Makers Say Tariffs Threaten Business
- UPS, Teamsters Discuss Wage Demands
- Crude Prices Rise Over Possible Iraqi Conflict
- G7 Foresees U.S., Global Recovery
- German Gov't to Levy Heavy Fine on Toll Evaders
- 2002 Budget Deficit Expected to Exceed $100M
- UPS, Teamsters Discuss Wage Demands
Auto Parts Makers Say Tariffs Threaten Business
Auto parts makers including Delphi Corp. and Dana Corp. say they may have to shut some factories due to tariffs on imported steel, Bloomberg reported Monday.If fewer parts are made, and the production of vehicles is disrupted, it can also hurt trucking companies in business with these sectors.
The price of steel sheet has increased 70% since December. Two trade groups sent a letter to President Bush Friday saying the tariffs have placed economic hardship on companies such as auto parts makers, Bloomberg reported. Transport Topics
UPS, Teamsters Discuss Wage Demands
Officials at the United Postal Service and the Teamsters Union were to address Monday wage and benefit proposals presented Friday by the union, the Wall Street Journal reported.The negotiators are hoping to reach agreement before the current contract expires July 31.
Over one half of the 371,000 truck drivers for UPS are members of the Teamsters, the Journal said.
Other companies like FedEx Corp. will begin to see some UPS business as the contract date approaches if no agreement has been reached, the story said.
A Teamsters' strike against UPS five years ago lasted 15 days and cost UPS $750 million in revenue, the Journal reported.
UPS was ranked No. 1 in the 2000-2001 Transport Topics 100 list of U.S. trucking companies. Transport Topics
Crude Prices Rise Over Possible Iraqi Conflict
Reports in the Washington Post that President Bush ordered the CIA to use all of its tools to topple Iraqi leader Saddam Hussein caused oil prices to rise in international trading Monday, Bloomberg said.Crude oil is distilled into diesel fuel and gasoline, both of which are used heavily in trucking. When the price of oil jumps, the cost is often passed on to fleets at the pump.
The Post reported Sunday that Bush gave the go-ahead for the CIA to begin operations to remove Hussein from power. That same day, Iraq's oil minister warned of possible supply disruptions because of a dispute with the United Nations over its handling of the country's oil shipments, Bloomberg said. Since the 1991 Gulf War, the U.N. has limited the amount of oil Iraq could sell and dictated how the proceeds from sales could be spent.
In Monday trading on the International Petroleum Exchange in London, oil prices rose 31 cents, or 1.2%, to $25.30 a barrel, Bloomberg said. Transport Topics
G7 Foresees U.S., Global Recovery
The Group of Seven (G7) leading industrialized nations predicted U.S. growth will stabilize between 3 and 3.5% by the end of 2002, Reuters reported Saturday.The trucking industry depends on the strength of both the U.S. and the global economies.
Finance ministers from the world's wealthiest nations said the U.S. economic growth is expanding and leading the way for economic recovery in the rest of the world, the story said.
Ministers from Canada, Britain, France, Germany, Japan, Italy and the U.S. agreed that loans force weak countries further into debt, Reuters reported. To help stop that cycle, therefore, they encouraged debt forgiveness to the poorest countries and advocated that 18 to 21% of future aid from the World Bank should be in the form of grants, Reuters said. Transport Topics
German Gov't to Levy Heavy Fine on Toll Evaders
Truck drivers who try to evade a proposed truck toll in Germany will face a fine of nearly $19,000, the central European country's transport minister told Bloomberg Monday.The toll of 20,000 euros, the equivalent of $18,980 U.S., will be levied against truckers who do not get a ticket after the toll is introduced in 2003, Bloomberg said.
Several German states are attempting to fight the proposed toll, which is expected to raise just over $3.1 billion. The German government is looking to raise funds and reduce the number of trucks on its highways, Bloomberg said.
Germany has been looking for ways to increase freight shipments by rail as part of its effort to reduce the number of trucks on the road, Bloomberg reported. Transport Topics
2002 Budget Deficit Expected to Exceed $100M
Congressional budget analysts are expecting the deficit for fiscal 2002 to exceed $100 million, the Wall Street Journal reported Monday.That figure could drive up interest rates and threaten the economic recovery by squeezing government spending, the story said. This would also hurt the demand for trucking services.
To counter the growing deficit, some Democrats are calling for a freeze on some of President Bush's tax cuts, the Journal said.
The deficit is expected to be a big issue heading into this fall's elections. Transport Topics
