News Briefs - March 1
The Latest Headlines:
- Nafta Surface Trade Rose 12.6% in 2004
- Caterpillar to Raise Prices By Up to 5%
- UP Plans to Boost L.A. Intermodal Capacity
- GM, Ford to Cut 2Q Production
- January Construction Spending Increases
- Schneider Reports Higher Revenue for 2004
- Roadway Express Expands Air Service to Canada
- Colorado Drops Charge in CDL Fraud Case
- Stonepath Regains Amex Standing, Reports 3Q Earnings
- CNF’s Menlo Unit Opens New International Offices
- Crude Oil Recedes After Closing at Four-Month High
- Fewer Companies Issuing Earnings Forecasts, Journal Says
- Caterpillar to Raise Prices By Up to 5%
Nafta Surface Trade Rose 12.6% in 2004
Surface trade among the U.S., Canada and Mexico grew 12.6% last year to $633 billion, the Department of Transportation reported Tuesday.Exports to the United States' North American Free Trade Agreement partners grew 11.9% in 2004 while Nafta imports rose 13.1%, DOT’s Bureau of Transportation Statistics said.
Pipeline exports grew the most, by 82.7%. Rail exports rose 16.1% and truck exports grew 10.5%, BTS said.
Caterpillar to Raise Prices By Up to 5%
Diesel engine and heavy equipment manufacturer Caterpillar Inc. said it will raise its machinery and engine prices by as much as 5% this year, Bloomberg reported Tuesday.The price hikes, which Caterpillar announced to its dealer network, were a result of higher raw materials prices, including steel.
The announcement followed a January announcement in which Caterpillar said price increases could add $1 billion to its 2005 sales, Bloomberg said.
Caterpillar reported 2004 sales and revenues of $30.25 billion, a 33% increase from 2003. Transport Topics
UP Plans to Boost L.A. Intermodal Capacity
Union Pacific Corp. said Tuesday it was in talks to increase capacity at its intermodal container transfer operation near the Port of Los Angeles.UP said in a statement it was in discussions with port authorities on expanding its intermodal capacity to handle an estimated 1.6 million marine containers annually.
The nation’s largest freight railroad said the increase could eliminate 500,000 truck trips annually from area highways.
UP rival BNSF Railway Co. said in early February it planned to build a $130 million, 157-acre intermodal transfer facility near the ports of Los Angeles and Long Beach, the nation’s busiest ports. Transport Topics
GM, Ford to Cut 2Q Production
The two largest U.S. automakers said Tuesday they would cut North American production in the second quarter, news services reported.General Motors Corp. and Ford Motor Co. said the planned cuts were in response to low January sales, Bloomberg reported. U.S. February car and light-truck sales for February fell 13% at GM and 2.9% at Ford.
Automobile cutbacks can affect trucking and logistics firms that move parts and inventory to plants.
GM today said would build 1.25 million vehicles in the second quarter, down 10% from a year ago, while Ford planned to build 940,000 vehicles, a 1.2% drop, Bloomberg said. Transport Topics
January Construction Spending Increases
The Commerce Department said Tuesday that construction spending rose 0.7% in January, following a revised 1.2% increase in December, to a record $1.047 trillion annual pace.The increase was more than expected, CNBC reported. Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.
Spending has risen for 12 straight months, the longest period of continuous construction expansion since record keeping began in 1993, Bloomberg reported.
Private residential construction, which accounts for more than half the total, rose 0.4%. Government-funded spending rose 0.8%, while public spending on road projects rose 4.4%, Commerce said. Transport Topics
Schneider Reports Higher Revenue for 2004
Schneider National Inc. said Tuesday it generated $3.2 billion in revenue 2004, up from $2.9 billion a year earlier.Because it is a private company, Schneider, the largest U.S. truckload carrier, did not disclose its income.
The company said its financial performance included a record 68% rise in its brokerage business and that its intermodal service posted double-digit growth.
Schneider is ranked No. 7 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. Transport Topics
Roadway Express Expands Air Service to Canada
Roadway Express said Tuesday it expanded its heavyweight air freight service to include Canada.The company said it was offering customers various shipping options and that customers could specify their own customs broker or Roadway would provide brokerage services on the consignee's behalf.
Roadway Express is a unit of Yellow Roadway Corp, No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. Transport Topics
Colorado Drops Charge in CDL Fraud Case
Colorado has dropped a charge against a trucking company that allegedly authorized seven fraudulent commercial driver licenses, the Denver Post reported.The state still contends that the negligence of Careers World Wide allowed misuse of driving test completion forms, the paper said.
At a hearing Friday, a company official testified that someone forged his signature on forms used to procure CDLs, the Post reported.
The action followed news reports of a federal criminal investigation into illegal sales of truck driver's licenses by Colorado Division of Motor Vehicles employees, including some tested at Careers World Wide, the Post said. Transport Topics
(Click here for previous coverage.)
Stonepath Regains Amex Standing, Reports 3Q Earnings
Logistics provider Stonepath Group said late Monday it had regained compliance with the American Stock Exchange’s continued listing standards.Stonepath, parent of Stonepath Logistics, said it earned $56,000 for the third quarter 2004, compared with $1.3 million a year earlier. Revenue for the quarter was $109.7 million, up from $65.5 million a year earlier.
A spokesman said Tuesday that Stonepath planned to file its fourth-quarter earnings in mid-March. Transport Topics
CNF’s Menlo Unit Opens New International Offices
CNF Inc.’s Menlo Worldwide Inc. logistics unit said late Monday it had reorganized its international operations, opening new offices in four countries.The move came as a result of CNF’s sale of air freight forwarder Menlo Worldwide Forwarding to UPS Inc. in December, the company said.
Menlo said it opened new offices in Hong Kong, India, South Korea and Chile. Unrelated to the sale, it also opened a supply chain center in Amsterdam, the Netherlands, Menlo said.
CNF is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. Transport Topics
Crude Oil Recedes After Closing at Four-Month High
The price of light sweet crude oil receded slightly in overnight trading after closing at a four-month high Monday.Crude fell 15 cents in overnight trading on the New York Mercantile Exchange, after closing at $51.75 a barrel Monday, the highest price since Oct. 29, Bloomberg reported.
Acting OPEC Secretary-General Adnan Shihab-Eldin said the cartel may decide to maintain or increase output at its March 16 meeting in Iran, Bloomberg said.
He said that with the current high price of oil, OPEC is not likely to consider production cuts, Bloomberg reported. Transport Topics
Fewer Companies Issuing Earnings Forecasts, Journal Says
The number of companies giving earnings forecasts is declining, the Wall Street Journal reported Tuesday.Last year 55% of large companies surveyed offered earnings forecasts, compared with 72% in 2003, the Journal said. Among the largest 300 companies based on revenue, 60% gave guidance to analysts, down from 79% in 2003, it said.
Companies felt pressure to reach goals they had set, while some resorted to “aggressive accounting” to meet their stated goals, the paper said.
Some investor-relations officers are moving toward offering annual rather than quarterly guidance while others are shifting toward forecasts based on revenue rather than income, the Journal reported. Transport Topics
