News Briefs - March 24
The Latest Headlines:
- Allied Holdings, Teamsters Renew Canadian Contract
- Survey Says Gas Prices Up Slightly Over Past Two Weeks
- FedEx Given 30 Days to Repay Government, DOT Says
- Daimler Sees No Improvement in Truck Market
- Stiffening Iraqi Resistance Pushes Crude Prices Higher
- W.Va. Governor Signs Bill Increasing Coal Truck Weight Limits
- Survey Says Gas Prices Up Slightly Over Past Two Weeks
Allied Holdings, Teamsters Renew Canadian Contract
Allied Holdings Inc. said Monday that its Canadian subsidiary, Allied Systems Co., has successfully reached an agreement with its employees represented by the Teamsters union in eastern Canada.The two sides had been working under a contract that had expired on Oct. 31, 2002, the company said. The union ratified the contract on Sunday. The new deal runs through Oct. 31, 2005.
An automobile hauler, Allied Holdings is ranked No. 23 on the 2002 Transport Topics 100 listing of the largest trucking companies in the United States and Canada. Transport Topics
Survey Says Gas Prices Up Slightly Over Past Two Weeks
The price of gasoline rose about 0.7 cent a gallon over the past two weeks, an industry survey said Sunday.The survey, conducted by analyst Trilby Lundberg said that the national average price of gasoline rose to $1.728 a gallon.
Gasoline prices, Lundberg said, had been surging in recent weeks, but that “all changed on March 17,” referring to President Bush’s ultimatum and subsequent war with Iraq.
Lundberg said that to date in 2003, gasoline prices have risen more than 25 cents a gallon. In the survey, Lundberg said that easing fears that a war would constrict supplies of oil from the Middle East have helped slow the increase of gasoline prices. Transport Topics
FedEx Given 30 Days to Repay Government, DOT Says
The Department of Transportation told FedEx it has 30 days to repay the government the $31.6 million it claims the package delivery company was overpaid for compensation resulting from the Sept. 11 terrorist attacks, Bloomberg reported.The Memphis, Tenn.-based company said in an Securities and Exchange Commission filing that the DOT asked for repayment of monies it received that the agency believes it was not entitled to, Bloomberg said (Click here for related coverage.). A DOT spokesman told Bloomberg that FedEx’s actual losses were "less than they anticipated they would be."
Bloomberg said that 60 other airlines received overpayment totaling $11 million. All but $1.7 million has been returned.
A FedEx spokesman said it stands by its position that its has actually been underpaid by the government and is still owed $18 million, Bloomberg reported.
DOT told Bloomberg that FedEx also has 30 days to appeal if it chooses.
FedEx is ranked No. 2 on the 2002 Transport Topics 100 listing of the largest trucking companies in the United States and Canada. Transport Topics
Daimler Sees No Improvement in Truck Market
DaimlerChyrsler AG said Monday that it doesn’t expect the market for heavy-duty trucks, or other commercial vehicles, to improve during 2003, Bloomberg News reported.Daimler said that its commercial vehicle sales fell 4.5% in Western Europe, helping to contribute to a $365 million loss during 2002. The German truck maker said it expects sales to fall even further during 2003, Bloomberg said.
The company, which manufactures trucks through its Freightliner, Mercedes-Benz, Mitsubishi and Hyundai subsidiaries, said that it is looking at was to cut costs like sharing parts across its brands, Bloomberg reported. Daimler also said that it is still hoping to find a partner to help it expand into the Chinese truck market. Transport Topics
Stiffening Iraqi Resistance Pushes Crude Prices Higher
The price of crude oil rose off of the four-month lows it closed at last week after a weekend where Iraqi troops put up a tougher fight against the U.S.-led coalition, Bloomberg News reported.On the New York Mercantile Exchange, oil prices rose as much as $1.28 a barrel to $28.19, Bloomberg said.
Traders told Bloomberg that oil prices rose after the weekend’s fighting because the war now appears it will last longer than they had hoped earlier. Transport Topic
W.Va. Governor Signs Bill Increasing Coal Truck Weight Limits
West Virginia Gov. Bob Wise signed a bill March 20 that would allow coal trucks to carry up to 120,000 pounds on roads in 15 counties in that state, the Associated Press reported.The law increases the weight limits for coal trucks from 80,000 pounds, AP said.
The bill will charge permit fees and coal-haulage taxes for companies carrying heavier loads, with revenue being spent on road maintenance and construction, AP reported. Transport Topics
