News Briefs - March 4
The Latest Headlines:
- Crude Oil Closes at $53.78, Highest Since Oct. 26
- Exel’s Profit Falls on U.S. Write-Down
- Intermodal Volume Rises 22.8% for Week
- New York’s Mayor Opposes Rail Cargo Tunnel
- Cummins Pays Down $225 Million in Debt
- Michigan Consumer Sentiment Index Falls
- Business Spending to Rise, Survey Says
- Teamsters Join Drivers in Protest at Miami Port
- Exel’s Profit Falls on U.S. Write-Down
Crude Oil Closes at $53.78, Highest Since Oct. 26
After touching $54 a barrel, light sweet crude oil futures closed at $53.78 on the New York Mercantile Exchange Friday, the highest closing price since Oct. 26.The price was up 21 cents from Thursday, when futures hit an intraday high of $55.20, not far off the record $55.67 per-barrel price set Oct. 25.
Analysts told the Wall Street Journal crude oil prices could reach $60 a barrel or even higher if supplies are disrupted or demand stays high, the paper reported Friday.
Exel’s Profit Falls on U.S. Write-Down
Exel Plc, the largest logistics firm in the United Kingdom, said its 2004 profit fell 32% to about $127 million from about $186 million after its U.S. unit took a charge.The company’s Exel Americas unit is ranked No. 1 in the Transport Topics Logistics 50 listing of the largest North American logistics companies.
Exel, which distributes goods for Ford Motor Co. and Hewlett-Packard Co., wrote down the value of a U.S. trucking company unit by about $195 million, Bloomberg reported.
Its takeover of a large logistics firm last year was expected to save the company about $55 million in cost savings this year, though Exel was not planning any major acquisitions in 2005, Bloomberg said. Transport Topics
Intermodal Volume Rises 22.8% for Week
The Association of American Railroads said reported intermodal volume grew 11.6% for the week ended Feb. 26 over the previous year.Rail intermodal volume totaled 221,347 trailers or containers for the week, AAR said. Trailers were flat while containers grew by 16.1%.
Railroad volume is considered an important economic indicator. Intermodal traffic, which tends to be higher-valued merchandise than bulk commodities, uses trains for the long haul and trucks for the shorter distance at either end of the trip.
Total rail carload freight shipments for the week grew 1.9% over last year, to 346,967 loads, the rail trade group said. Transport Topics
New York’s Mayor Opposes Rail Cargo Tunnel
New York City Mayor Michael Bloomberg will not support a proposed rail freight tunnel from New York into New Jersey, the New York Times reported Friday.The Republican mayor told a citizens' group Thursday he opposed the plan, the paper reported.
Planning for the tunnel began under the city’s former mayor, Rudolph Giuliani, the Times said.
The tunnel has become a political issue, with Democrats supporting it, the paper reported. Transport Topics
Cummins Pays Down $225 Million in Debt
Diesel engine manufacturer Cummins Inc. said Friday it paid $225 million in seven-year notes that were issued in 1998.The company said that as a result, its debt-to-capital ratio will fall by about 3% from the end of 2004.
Cummins said the payment was a "significant step toward achieving investment-grade financial metrics." It said its debt rating is Ba2 by Moody's and BB+ by Standard & Poor's. Transport Topics
Michigan Consumer Sentiment Index Falls
The University of Michigan index of consumer sentiment fell to 94.1 in February from 95.5 in January.Consumer sentiment is commonly thought to drive spending, which often pushes demand for trucking services.
The drop was more than a Feb. 18 preliminary estimate of 94.2 and more than analysts’ prediction of 94.5, Bloomberg reported.
The university’s expectations index, which measures consumer optimism for the next one to five years, also decreased, falling to 84.4 in February from 85.7 in January. Transport Topics
Business Spending to Rise, Survey Says
A survey of U.S businesses showed they plan to invest more in new plants and equipment as confidence in the economy rose to the highest level in at least two years, Bloomberg reported.The Business Roundtable's outlook index for the next six months jumped to 104.4 this quarter, the highest since the survey began in November 2002, from 98.9 in December 2004, Bloomberg said.
Readings of more than 50 indicate improvement.
Capital spending plans for the next six months were the strongest since the survey began. About 60% of the respondents planned spending increases, up from 50% in the last survey in December, Bloomberg reported. Transport Topics
Teamsters Join Drivers in Protest at Miami Port
Truck drivers blasted their horns Thursday in protest at the Port of Miami as Teamsters union members showed up in a show of solidarity with them, the Miami Herald reported.Union members told the paper they hoped the truckers would someday join the Teamsters.
Drivers shut much of the port’s operations down last summer in protest of high fuel costs, low wages and no benefits for drivers.
The Herald reported trucking company owners said increasing pay and benefits would be too costly and that owners had increased drivers’ pay last year. Transport Topics
