News Briefs - June 3
The Latest Headlines:
- Con-Way Air Express to Cover Canada
- Yellow's Zollars Says 2Q Tonnage Will Rise
- Kelly Springfield Recalls 10,000 Truck Tires
- Okla. Bridge Detours Mean Heavy Traffic for Small Towns
- Heartland Completes Acquisition of Great Coastal
- W.Va. Task Force Delays Coal Truck Recommendation
- WTO Panel to Weigh In on U.S. Steel Tax
- State Tax Hikes Threaten Economy, WSJ Says
- Garden State Parkway Reopened After Fire
- UPS, Teamsters Report Accord on Key Contract Issue
- Oil Prices Resume Decline
- Yellow's Zollars Says 2Q Tonnage Will Rise
Con-Way Air Express to Cover Canada
Air forwarder Con-Way Air Express will offer its Web-based services to nine provinces across Canada starting Monday, the company announced.Con-Way currently offers services to the continental U.S., Alaska, Hawaii and Puerto Rico, and will now cover all major markets in Canada, the company said.
Based in Forest Park, Ga., the company tracks freight shipments and allows for shipping path intervention in order to avoid potential delays.
(Click here for full press release.)
Yellow's Zollars Says 2Q Tonnage Will Rise
Yellow Corp. will carry more freight during the second quarter than it did for the same quarter last year, chief executive officer William Zollars said Monday.Zollars told Bloomberg that freight tonnage at Yellow Transportation rose in the low single digits during April and May. He credited the pick up in tonnage to the economic recovery.
The recovery hasn't been the V-shaped pickup some economists had predicted, Zollars told the news service, but it has been a more slow, steady, glacial move forward.
Yellow, a less-than-truckload carrier based in Overland Park, Kan., is ranked No. 5 on the 2000-01 Transport Topics 100 list of the largest trucking companies in the United States. Transport Topics
Kelly Springfield Recalls 10,000 Truck Tires
The National Highway Traffic Safety Administration said last week that Goodyear Tire and Rubber Co. has issued a recall on more than 10,000 of its Kelly Springfield model truck tires.The tires, Armorsteel KLHS Load Range G in sizes 285/75R24.5 and 295/75R22.5, were recalled in March, NHTSA said when it issued its list of vehicles and products recalled that month.
Goodyear said it will replace the 10,345 tires, which have shown evidence of premature tread separation – a problem that can cause the driver to lose control of the vehicle and possibly crash.
Owners began being notified of the recall April 3, NHTSA said. Transport Topics
Okla. Bridge Detours Mean Heavy Traffic for Small Towns
The bridge collapse on Interstate 40 in Oklahoma last week is forcing thousands of truckers to detour through small towns with roads not built to handle the heavy traffic, the Associated Press reported Saturday.Some of these towns like Gore, Okla., will likely see a small economic boost over the next several months, AP said.
But the little town of 700 people has already seen large traffic jams trying to navigate its streets.
A different detour takes travelers south of the interstate for 60 miles, and state transportation officials said they will put up more signs and warning lights after an accident last week caused major delays. Transport Topics
Heartland Completes Acquisition of Great Coastal
Truckload carrier Heartland Express Inc. said Monday it has completed the acquisition of Great Coastal Express Inc., a mid-Atlantic regional truckload carrier.Great Coastal had gross revenues of nearly $70 million in 2001 and currently operates 500 company tractors, 125 owner-operators and 1,650 trailers. The company will continue to operate out of its current headquarters in Chester, Va.
Based in Coralville, Iowa, Heartland is ranked No. 55 on the 2000-2001 Transport Topics 100 list of the largest U.S. trucking companies. Transport Topics
(Click here for the full press release.)
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W.Va. Task Force Delays Coal Truck Recommendation
The 10-member West Virginia panel created to address the issue of overweight coal trucks does not think it will have a proposal ready for the state legislative session scheduled in July, the Associated Press reported Saturday.While many residents in the state want to improve enforcement of current weight limits to protect state roads, the coal industry is seeking to increase limits to 120,000 pounds from 80,000 so haulers can operate at a profit. (Click here for earlier coverage.)
Over the next weeks, the task force will conduct public hearings on safety, road and bridge concerns, enforcement and economics and private hearings with industry groups, AP said.
After these hearings the task force will begin compiling the information and draft the proposal, AP reported. Transport Topics
WTO Panel to Weigh In on U.S. Steel Tax
The World Trade Organization began looking into the legality of steel tariffs enacted by the United States in March, Reuters reported Monday.The outcome of the panel, expected to be in before the end of the year, could have far reaching effects on U.S. steel haulers. If it is upheld, domestic haulers will likely see their business increase, while haulers who carry imported steel from the nation’s ports could see declines in shipments.
Countries in the 144-member body approved the formation of a three-person panel to mediate the dispute. The action was requested by the European Union, but backed by several nations, including Japan and China.
The request was first made at a May 22 meeting of the WTO’s Dispute Settlement Body, but the United States blocked it. Transport Topics
State Tax Hikes Threaten Economy, WSJ Says
Economists are worried that states turning to tax and fee increases instead of spending cuts to close budget gaps are risking harm to the fragile economy, the Wall Street Journal reported Monday.All of these measures, economists told the Journal, hurt consumers and decrease the flow of capital.
The trucking industry is very susceptible to economic weakness, and fee increases like the toll hikes proposed in Massachusetts can especially hurt truckers.
Economists, such as those at the Policy Research Institute at the University of Kansas, explain that state governments increase spending and cut taxes when they have budget surpluses, which leaves them with budget gaps when the economy faces recession.
To avoid measures that would further damage the economy, several state governments have petitioned Congress to use federal funds, in the form of block grants and other direct federal spending, to aid state governments, the Journal reported.
Kansas, California and Massachusetts are three of the states whose governments are proposing tax and fee increases to close budgets gaps next year, the Journal said. Transport Topics
Garden State Parkway Reopened After Fire
A 24-mile stretch of the Garden State Parkway was reopened about 2 a.m. Monday after a forest fire closed it over the weekend, the New Jersey Highway Authority's Parkway traffic information line reported.Though trucks are not allowed on some parts of the Parkway, the section closed by the fire is normally open to trucks. The highway closure was centered around Double Tree State Park, about 50 miles northeast of Atlantic City, N.J. and about 75 miles south of New York City.
The fire was spurred on by 30 mile per hour winds and a long dry spell, the Associated Press reported.
The NJHA said smoke can still limit visibility and urged motorists to use caution while driving through the area. Transport Topics
UPS, Teamsters Report Accord on Key Contract Issue
United Parcel Service and the Teamsters union have reached a tentative agreement over a reduction in the amount of union members' work that can be done by supervisors under a new contract, Bloomberg reported Saturday.The issue is an important part of the overall contract, a union spokesman said, but there are many others.
The existing contract is set to expire on July 31.
UPS is ranked No. 1 on the 2000-2001 Transport Topics 100 list of the largest trucking companies in the U.S. Transport Topics
Oil Prices Resume Decline
After a slight 1% increase in crude oil prices on Thursday, the decline due to high supply levels in the U.S. has begun again over the weekend, Reuters reported.Crude oil prices eventually influence diesel fuel and gasoline prices, which are very important to the trucking industry.
The Organization of Petroleum Exporting Countries maintains that it will not raise the ceiling on oil production as it seeks to maintain the equilibrium between oil supply and demand, Reuters said.
Analysts expect that prices will continue to fall this summer despite increases in vacation travel, because Russia plans to increase its production by 15% in the third quarter and concern over the effect of conflict in the Middle East will have on production has diminished.
The price of crude oil rose 40 cents to $24.45 a barrel Friday on the London International Petroleum Exchange. Transport Topics
