News Briefs - March 12
- Federal-Mogul Completes $23 Million Sale of Light Unit
- Celadon to Purchase Some Assets of Foothill Corp.
- International Oil Group Sees Higher Prices
- Oregon Needs Millions for Bridge Repairs
- Airlines Will Bounce Back Slowly, FAA Says
- Ergonomics Policy May Be Aired April 15
- Simon Prepares to Sell Off Assets
- Transport Stocks Seen Leading Way Out of Recession
- Hyundai Picks FedEx as Exclusive Carrier in U.S.
- Delays Expected as Construction Begins Near Chicago
- Landstar Sees Business Picking Up
- Celadon to Purchase Some Assets of Foothill Corp.
Federal-Mogul Completes $23 Million Sale of Light Unit
Truck and automotive parts maker Federal-Mogul Corp. announced Tuesday that it has completed the sale of its vehicle signal and emergency light-manufacturing unit to a division of Penske Corp.The sale of Signal-Stat Lighting Products to Truck-Lite Co. was originally announced Feb. 6 and approved by the bankruptcy court on Feb. 26. Federal-Mogul filed for Chapter 11 protection in October 2001.
Signal-Stat employs 460, half of whom will lose their jobs, and makes clearance lights for commercial trucks, among other things. The division had sales of $54 million in 2001. Transport Topics
(Click here for the full press release.)
Celadon to Purchase Some Assets of Foothill Corp.
Celadon Group Inc. announced Tuesday that it has reached an agreement with Foothill Corp. to purchase certain assets.Foothill is a secured lender to Burlington Motor Carriers, a truckload carrier based in Daleville, Ind. Burlington has been reorganizing itself since July 2001. Under the deal, Celadon would receive tractors, trailers, customer contacts and lists, office equipment and general intangibles.
Based in Indianapolis, Celadon is a truckload carrier transporting freight between the U.S., Canada and Mexico. It is also the majority owner of TruckersB2B, an Internet-based business-to-business firm that provides discounted services and equipment for trucking companies.
Financial terms of the deal were not disclosed. Transport Topics
(Click here for the full press release.)
International Oil Group Sees Higher Prices
The International Energy Agency said that it sees prices for crude oil pushing higher because of tightened supply, Bloomberg reported Tuesday.Crude oil is refined to produce diesel fuel and gasoline, making its market price critical to the trucking industry, which relies on these fuels.
The IEA said that crude oil prices, which have spiked 18% since the beginning of the year, will most likely continue their rise as the U.S. economy continues to recover, pushing up demand and oil suppliers like the Organization of the Petroleum Exporting Countries keep output low, Bloomberg said.
Oil prices reached $23.55 in international trading Tuesday as a result of concerns that the U.S. may extend the war on terrorism to Iraq, possibly threatening Middle Eastern oil supplies, Bloomberg said. Transport Topics
Oregon Needs Millions for Bridge Repairs
Oregon transportation experts said it will cost $615 million to fix or replace 309 state-owned bridges, and another $2 billion for other bridge-related projects, the Associated Press reported Monday.Approximately 30 bridges in the state have weight limits that force many truckers to take long detours, which could force companies to raise prices to make up the difference.
Several of the worst bridges are along Interstate 5, the major north-south route along the West Coast. The Oregon Department of Transportation plans to use $95 million in new bond money to replace these bridges over the next several years, AP said. Transport Topics
Airlines Will Bounce Back Slowly, FAA Says
The Federal Aviation Administration said Tuesday that the nation's airlines likely won't see a recovery in traffic for at least a year, the Associated Press reported.Commercial passenger airlines often carry air cargo that is picked up and delivered by trucks.
The AP said the FAA cited fears over safety and an inefficient air traffic system as the reasons for the drop in air traffic.
Air travel peaked during a 12-month period ending September 2000 when 695.3 million passengers flew on U.S. carriers. That number is expected to drop to roughly 600 million during the fiscal year ending this September, the AP said.
Before the attacks, the FAA had been projecting continued increases in passenger traffic, leading to airlines carrying 1 billion passengers a year by 2010, the AP reported. Transport Topics
Ergonomics Policy May Be Aired April 15
A White House policy to reduce ergonomic workplace injuries isn’t expected until April 15, the Wall Street Journal said Tuesday.Regulations repealed by Congress and President Bush last March would have covered millions of workers including truck drivers and warehouse workers.
A hearing scheduled for March 14 before the Senate Labor Committee was postponed at the White House’s request, according to a committee staff member, although a White House spokeswoman said the decision was mutual.
The Journal said the policy is expected to be a set of voluntary guidelines, which the paper said would please business and anger labor. Transport Topics
Simon Prepares to Sell Off Assets
As part of its ongoing bankruptcy proceedings, Simon Transportation Services Inc., and its subsidiary Dick Simon Trucking Inc., made preparations in a Monday court filing to sell off most of its assets.In a motion filed with the Bankruptcy Court for the District of Utah in Salt Lake City, Simon sought approval of certain details of an auction to sell off its assets, the company said. Among the details were the procedures for bidding and the auction itself and a date for the proceedings.
Included in that filing was a notice of a potential bid from Central Freight Lines Inc., a company controlled by Jerry Moyes, for nearly all of Simon's assets.
Moyes, the current majority stockholder in Simon, is also the chairman and chief executive officer of Swift Transportation Co.
Simon also asked the court to let it retain Morgan Keegan & Co. to oversee the sale of its assets of a four-week period. Keegan will continue to seek additional bids from any interested parties, the company said.
In other Simon bankruptcy news the company met, as of March 8, all of its requirements to maintain its auto and general liability insurance. Also on March 8, the company reached an agreement with the NASDAQ stock exchange to de-list Simon's Class A stock beginning Tuesday.
Simon Transportation was No. 62 on the 2000-2001 Transport Topics list. Moyes' firms Swift and Central Freight Lines are ranked Nos. 17 and 44 respectively on the list. Transport Topics
(Click here for the full press release.)
Transport Stocks Seen Leading Way Out of Recession
Recent run ups in the prices of United Parcel Service and FedEx Corp. stocks indicate the economy is on the mend, Reuters said Monday, noting that the transport sector often leads other firms into and out of economic slowdowns.As the economy improves companies often begin purchasing items like computer equipment and other goods that they had put off buying during a recession, as these orders come in, shipments roll out on trucks from FedEx, UPS or other trucking firms. Market observers look for this increase in demand for trucking services and identify it as a sign of recovery.
So far this year, the Dow Jones Transportation Average is up 13%, compared to a 5% jump on its cousin, the Dow industrials, Reuters said.
UPS and FedEx are Nos. 1 and 2 respectively on the 2000-2001 Transport Topics 100 list. Transport Topics
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Hyundai Picks FedEx as Exclusive Carrier in U.S.
Hyundai Motor America said Tuesday that it has selected FedEx Corp. as the exclusive carrier of its express document, small-package ground and palletized express-freight shipments to dealers within the United States.Hyundai expects to ship about 200,000 packages per year as part of this deal using FedEx Express Priority Overnight, FedEx 2-Day FedEx Express Freight services and FedEx Ground service.
The contract took effect in February 2002, but the length of the deal was not announced.
FedEx is ranked No. 2 in the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Delays Expected as Construction Begins Near Chicago
Heavy delays are expected at times near Chicago as major construction begins Friday on the interchange between Interstates 55 and 294, the Chicago Tribune reported Monday.I-55 is a major north-south route that provides truckers easy access from Chicago to New Orleans and Baton Rouge, La.
The project includes rebuilding several ramps and bridges between the highways that are aimed at improving safety while reducing congestion, the Illinois Department of Transportation said.
It will require lane shifts and occasional closures as the construction progresses. The project is scheduled to be completed by Oct. 31. Transport Topics
Landstar Sees Business Picking Up
Jeff Crowe, chief executive officer of truckload carrier Landstar System Inc., said Monday that the company has seen a small increase in business so far this year, and will meet expectations for the first quarter, Reuters reported.Analysts are predicting that Landstar will earn between 92 cents and $1.04 a share for first quarter ending March 31, Reuters said. The company has earned $11.6 million, or $1.40 a share, in the first quarter of 2001.
Based in Jacksonville, Fla., Landstar is ranked No.16 in the 2000-2001 Transport Topics 100 list. Transport Topics
