News Briefs - June 6
The Latest Headlines:
- R.I. Gov. Vetoes 2-Cent Fuel Tax Hike
- Steamship Exemption Hurts Truckers,Hoffa Says
- Rebound Pace Subdued, Fed's Broaddus Says
- OPEC Secretary Says Crude Oil Prices May Fall
- Jobless Claims Fall to Lowest Level in More Than a Year
- FedEx Ground Opens New Automated Facility
- Hino Expects Profits to Quadruple in 3 Years
- FAA Says More Passenger Planes Taking Off
- Without Loan, Amtrak Will Shut Down, Chief Says
- G.I. Trucking Adds Overnight Service in Calif.
- UAW Names Gettelfinger President
- Steamship Exemption Hurts Truckers,Hoffa Says
R.I. Gov. Vetoes 2-Cent Fuel Tax Hike
Rhode Island Gov. Lincoln Almond vetoed a proposed budget Thursday that would have included a 2-cent diesel and gasoline fuel tax increase.Almond called the budget "a fiscal nightmare" and a "policy disaster" and criticized it for what he called $200 million of overspending, along with the fuel tax hike.
Almond called on the Legislature to reconvene before June 12 to reconsider the budget.
A two-cent fuel tax hike would increase Rhode Island's levy on diesel to 31 cents per gallon, the highest in the nation. Pennsylvania's 30.9-cent fuel tax is currently the most expensive, the Department of Energy said. Jeff Johnson
Steamship Exemption Hurts Truckers, Hoffa says
James P. Hoffa, Teamsters union president, told congressmen Wednesday that the federal antitrust exemption for steamship lines is harmful to port truckers, the Associated Press reported.Hoffa told the House Judiciary Committee the shipping lines' ability to set rates collectively allows them to force truckers to accept low wages and poor working conditions, AP said.
The Justice Department also supports repealing the exemption, said Charles A. James, assistant attorney general in the antitrust division, the AP said.
But Christopher Koch, president of the World Shipping Council, said no nation applies antitrust laws to international shipping, and doing so would "undermine the industry," AP said.
Committee Chairman James Sensenbrenner (R-Wis.) has introduced legislation that would remove the exemption. Jeff Johnson
Rebound Pace Subdued, Fed's Broaddus Says
Alfred Broaddus, president of the Federal Reserve Bank of Richmond said the U.S. economy will continue to recover at a subdued pace and there is no risk of inflation, Bloomberg reported Thursday.Bloomberg said his remarks suggest Broaddus doesn't favor an increase in interest rates.
Economic recovery is very important to the trucking industry the stronger the economy becomes, the more business the trucking industry sees.
Speaking to the Washington Association of Money Managers, Broaddus said the labor market is an economic soft spot that has contributed to slowing consumer spending, flat business investment levels and the stock market's lackluster performance. Transport Topics
OPEC Official Says Crude Oil Prices May Fall
Ali Rodriguez, the secretary general of Organization of Petroleum Exporting Countries, said increased production by non-OPEC countries and steady production levels by OPEC may lead to a decline in the price of crude oil later this year, Bloomberg reported.Crude oil prices are reflected in the prices of gasoline and diesel fuel, which power commercial trucking. Therefore the possibility of falling prices is good news to the industry.
OPEC will meet in Vienna on June 26 to decide output levels for the third quarter, but most ministers have already agreed to maintain current levels.
OPEC nations hold almost 80% of known oil reserves, Bloomberg said, yet pump only about a third of world output, restraining supply to boost prices. Transport Topics
Jobless Claims Fall to Lowest Level in More Than a Year
The number of Americans filing for unemployment benefits for the first time fell by 32,000 last week, pushing them to the lowest level since May 5, 2001, the Department of Labor reported Thursday.Improving employment figures are a good sign for the economy, and can improve consumer confidence and spending – both of which can boost demand for trucking.
The decline was the third in as many weeks.
The four-week moving average, a statistical device used to take the volatility out of the week-to-week reports, fell to 411,250, its lowest point since late March.
Because claims typically fall more sharply in a holiday week, Labor adjusted the raw figures to take it into account, Bloomberg said. Transport Topics
FedEx Ground Opens New Automated Facility
FedEx Ground, the small-package ground carrier division of FedEx Corp., will open the doors on its newest, largest and most automated local operation Thursday in Richfield, Ohio.Equipped with high-tech package sorting machinery, including high-speed, camera-based scanners that can "read" all sides of a package, the facility will house 144 vans and serve Ohio between Cleveland and Akron.
When fully operational, FedEx said the facility will process 15,000 packages an hour.
FedEx Corp. is ranked No. 2 on the 2000-01 Transport Topics 100 list of the largest trucking companies in the United States. Transport Topics
(Click here for the full press release.)
Hino Expects Profits to Quadruple in 3 Years
Japanese truck maker Hino Motors Ltd. said it is projecting a more than fourfold increase in profits over the next three years, Bloomberg reported.Half-owned by Toyota Motor Corp., Hino said its profits will be bolstered by increases in sales both in Japan and overseas. Hino just spent four years in the red before turning a profit during 2001, Bloomberg reported.
The company said as part of its plan to boost profitability, it will start building light- and medium-duty trucks in the United States by 2005, Agence France Presse reported.
Hino expects sales in Japan to rise 34% to 45,870 by March 2005 and by 49% abroad to 32,000. Sales of just Hino's engines are expected to rise 74% to 20,400, Bloomberg said. Transport Topics
FAA Says More Passenger Planes Taking Off
The number of daily takeoffs and landings reported at many U.S. airports by the Federal Aviation Administration is returning to levels not seen since the Sept. 11 terrorist attacks, the Wall Street Journal reported Thursday.Passenger planes also carry cargo that is later transferred to trucks, so more flights could mean more demand for trucking services.
While the levels at some airports are still lower due in part to reduced international travel, airports in Chicago, Atlanta, Salt Lake City, Denver and Dallas are seeing levels equal to or ahead of last year's pace.
Airports in Miami and San Francisco are running close to last year's pace, and the FAA said takeoffs and landings at all airports should increase further as the summer travel season heats up. Transport Topics
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Without Loan, Amtrak Will Shut Down, Chief Says
Amtrak’s new boss says the passenger train system will be forced to shut down all of its operations unless it receives a $200 million loan in the next three weeks, the Washington Post reported Thursday.Although Amtrak is primarily a passenger carrier, it competes with trucking for certain kinds of time-sensitive package freight.
Though Amtrak spokesmen were optimistic that the company would receive the loans, major financial troubles will remain as Amtrak already faces $3.76 billion in debts, the Post said.
President and Chief Executive Officer David Gunn has planned a major reorganization, including the elimination of more than 50 vice president positions in the company and eliminating three business units. He will also publicize Amtrak’s finances through detailed monthly updates available to the public, the story said.
Gunn, who has been on the job three weeks, hopes Congress will appropriate $1.2 billion to Amtrak next fiscal year, the Post reported. Transport Topics
G.I. Trucking Adds Overnight Service in Calif.
G.I. Trucking Co. said Wednesday that it has shortened service schedules to offer overnight service to its customers in key California cities.Among the cities involved in the new, quicker service are San Francisco, Sacramento, San Jose, Modesto, Fresno, Bakersfield, Santa Maria, Chico and Camarillo, the company said.
G.I. Trucking is a regional less-than-truckload carrier operating in 13 Western states. Transport Topics
(Click here for the full press release.)
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UAW Names Gettelfinger President
The United Auto Workers elected Ron Gettelfinger president at the union's constitutional convention Wednesday, the Associated Press said Wednesday.Gettelfinger, who has been a union vice president since 1998, will succeed Stephen Yokich at the helm of the 700,000-member union. Yokich is retiring after a two-year term as president.
Elizabeth Bunn was elected as secretary-treasurer at the convention, AP said. She becomes the highest-ranking woman in the union's history. Transport Topics
