News Briefs - March 7
The Latest Headlines:
- VW to Add 500 Workers to Truck Division
- U.S., Allies Propose March 17 Deadline for Iraq
- Crude Oil Up Slightly on Iraq Tensions
- House Leaders Seek $375 Billion in Transportation Funding
- Gasoline Prices Hit Record Highs in 16 States, Paper Reports
- Intermodal Traffic Edges Higher
- U.S., Allies Propose March 17 Deadline for Iraq
VW to Add 500 Workers to Truck Division
Volkswagen AG, the largest automaker in Europe, said Friday that its truck division will add 500 new jobs as demand for new products increases, Bloomberg reported.The German automaker said that it plans to introduce a new line of commercial vehicles, Bloomberg said. VW’s commercial truck division has suffered from weak demand as economies around the world slumped.
Volkswagen said that 2002 profit at its truck division fell 46% as sales dropped and new equipment spending grew, Bloomberg reported. Transport Topics
U.S., Allies Propose March 17 Deadline for Iraq
The United States and its allies proposed a deadline of March 17 for Saddam Hussein to comply with the terms of its disarmament or face war, the Associated Press reported.They offered the measure in the United Nations Security Council as an amendment to a resolution put forth by the U.S., U.K. and Spain that would pave the way for war, AP said.
Other members of the Security Council, including France and Germany, have vowed to block war efforts. The U.K. put forth the deadline proposal on the same day that UN weapons inspector Hans Blix said Iraq was being more cooperative with inspections in recent days, AP reported.
Numerous analysts have said that uncertainty about the war has hurt the U.S. economy and driven up oil and motor fuel prices Transport Topics
Crude Oil Up Slightly on Iraq Tensions
The price of crude oil rose slightly in after-hours trading Friday morning before of a report by United Nations weapons inspector Hans Blix to the UN Security Council, Bloomberg said.Blix told the council that Iraq was becoming increasingly cooperative with inspections, Bloomberg reported. Tensions remained high after the United Kingdom voiced its support for a firm deadlin for Iraqi disarmament (Click here for related coverage.).
On the New York Mercantile Exchange, the price of crude oil for April delivery rose 1 cent to $37.01, Bloomberg reported.
The report could contain information, analysts said, that would prompt the United States to seek a military solution to the crisis in Iraq, Bloomberg reported.
In a televised press conference Thursday night, President Bush said that diplomatic efforts were in their "final stages."
The possibility of war in Iraq and subsequent oil supply constrictions have helped push crude oil and motor fuel prices higher. Transport Topics
House Leaders Seek $375 Billion in Transportation Funding
Leaders from both parties on the House Transportation Committee said they have agreed on a highway and transport spending package totaling $375 billion over six year – a 52% more than President Bush’s budget, Bloomberg reported.Reps. Don Young (R-Alaska) and James Oberstar (D-Minn.) said they are considering increasing fuel taxes to pay for the spending package, Bloomberg said. Young is the committee’s chairman and Oberstar is its ranking minority member.
Congress and the Bush administration are working to complete a new spending plan for transportation before the current one expires in September.
An economist with the American Road & Transportation Builders Association, William
uechner told Bloomberg that every $1 billion spent on highway construction and maintenance generates $925 million in corporate contracts and payrolls. Transport Topics
Gasoline Prices Hit Record Highs in 16 States, Paper Reports
Gasoline prices in 16 states have hit record highs this week, the Wall Street Journal reported Friday.Fears of a war in Iraq, a colder-than-usual winter and the lingering fallout from a strike in Venezuela have all combined to push crude oil and motor fuel prices higher.
The Wall Street Journal, citing AAA, said that the average price of gasoline has risen above $2 a gallon in California – 21% higher than that state’s seven-year average gas price. Gas prices in several other Western states were also approaching the $2-a-gallon mark.
In all, 16 states, mostly in the West and Southeast have breached their all-time highs, according to AAA.
The paper said there have been some isolated incidences of some fuel terminals running out of fuel after small delays in shipments. Transport Topics
Intermodal Traffic Edges Higher
The number of intermodal loadings on America’s railroads last week edged higher by less than a full 1%, the Association of American Railroads said Thursday.Intermodal is the segment of the rail industry competes most directly with long-haul over-the-road trucking.
Container loadings rose 1.4% to 132,477 last week, while trailer loadings fell 1.1% to 48,950, AAR reported. Overall, loadings rose just 0.7% to 181,427, the group said.
Year-to-date, overall intermodal loadings are running 8.4% higher than they were at the same point last year, AAR said. Transport Topics
