News Briefs - March 8
- Kmart to Close 284 Stores, Cut 22,000 Jobs
- Senate Passes Stimulus Bill
- Analysts Believe More Bankruptcies Coming
- Study: Ergonomics Policy Would Have Big Impact on Trucking
- Mexico's Chief Trade Negotiator Resigns
- California Voters Pass Gas Tax Plan
- Kephart Trucking Fined $140,000
- Crude Oil Price Slips as War Fears Ease
- Texas Motorists See Fuel Prices Rise
- FMCSA Still Considering TCA's Pilot Program
- Rail Intermodal Loadings Near 2001 Pace
- Senate Passes Stimulus Bill
Kmart to Close 284 Stores, Cut 22,000 Jobs
Kmart Corp. said Friday that it will close 284 stores and eliminate 22,000 jobs in the United States as part of its Chapter 11 bankruptcy review.Virtually all the merchandise carried to Kmart's more than 2,100 stores is moved in trucks, so the closings will hurt the trucking firms in business with the retailer.
Kmart, which filed for bankruptcy protection in January, said the stores will remain open pending approval of the plan by a bankruptcy court.
The company is expecting to take a charge of at least $1.1 billion for the restructuring, but will increase cash flow by $550 million this year and $45 million in future years.
Senate Passes Stimulus Bill
The U.S. Senate passed a scaled-down economic stimulus plan on Friday and sent it to President Bush, who already said he will sign it into law, news services reported.Among the provisions are tax breaks designed to stimulate investment in equipment, which would benefit trucking companies. Truckers also would benefit from general increases in business and consumer spending.
The bill would cost the U.S. Treasury about $51 billion this year, Reuters said. It provides additional business tax breaks and extends unemployment benefits to 39 weeks from the current 26 weeks.
Businesses would also be able to use current losses to reduce tax payments for the previous five years. Transport Topics
Analysts Believe More Bankruptcies Coming
Analysts believe nearly 200 publicly traded companies will file for bankruptcy protection in 2002, Reuters reported Friday. While this is fewer than in 2001, it is still way above average.In 2001, 3,990 trucking companies with a fleet of at least 10 trucks went out of business, Transport Topics previously reported.
In addition, Trism Inc. and Burlington Motor Carriers were among the major trucking firms to file for Chapter 11 in 2001. And last month, Simon Transportation Services Inc. filed for reorganization under Chapter 11.
In 2001, a total of 257 publicly traded companies filed for bankruptcy, a report by PricewaterhouseCoopers LLP found. That figure was more than twice the number of filing as there were in 1991 or 1992 – the years of the last recession, Reuters said.
Filings by privately held companies are projected to rise to 10,800 in 2002 from 9,928 in 2001, the report said. This is the highest rate of failures since 1995. Transport Topics
Study: Ergonomics Policy Would Have Big Impact on Trucking
A study by the Washington state Department of Labor and Industries found that trucking would be among the industries most affected by a national ergonomics policy, Bloomberg reported Friday.Ergonomics rules are aimed at protecting workers from musculoskeletal injuries.
The trucking industry has a strong interest in ergonomics policies at both the state and federal level. U.S. Labor Secretary Elaine Chao is currently developing proposals for a national ergonomics policy.
The state’s study found that between 1992 and 1999, the most incidents of repetitive stress injuries were seen in nurses, truckers and air package sorters, the department said on its Web site. This is in line with other studies conducted by the U.S. Labor Department.
Overall, repetitive stress injuries accounted for 25% of the state’s worker compensation claims between 1991 and 1999, at a cost of $2.4 billion, Bloomberg said.
Washington state adopted its own ergonomics standard in 2000. Transport Topics
Mexico's Chief Trade Negotiator Resigns
Luis de la Calle, Mexico's chief trade negotiator who has been involved in the U.S.-Mexico border trucking dispute, said Thursday he will leave his position March 31. He will be replaced by Angel Villalobos, Dow Jones reported.After years of dispute, Mexican trucks are close to gaining access to U.S. highways. President Bush's signing of a $59.6 billion transportation appropriations bill for fiscal 2002 in December granted Mexican trucks that access provided they first meet stringent safety provisions, Transport Topics previously reported.
Villalobos is currently chief of staff at the Economic Ministry. He has worked on the government's foreign trade and investment promotion programs, and has also represented the ministry on the Commission for Northern Border Affairs. Transport Topics
California Voters Pass Gas Tax Plan
Voters in California passed a plan on Tuesday to dedicate all revenues from gasoline taxes to roads and transportation projects, the Los Angeles Times reported.The measure, known as Proposition 42, passed by a 69% majority. It shifts $1.4 billion a year from the state’s general fund to transportation projects beginning in 2008.
Among the groups opposing the measure were the state’s teachers union and the Employees International Union, both of whom feared the reallocation of funds would deprive education, health care and other programs of money.
However, proponents of the plan said it just made sense to put dollars from fuel taxes into the state’s highways, the Times reported. Transport Topics
Kephart Trucking Fined $140,000
The Pennsylvania Department of Environmental Protection said Thursday that it has levied $143,600 in fines against Kephart Trucking Co. for 113 waste transportation violations.The fines were the result of "Operation Clean Sweep," an environmental inspection drive started last May.
The waste hauler was found to have 49 violations for leaking waste, 37 for improperly enclosed or covered waste, 20 for overweight vehicles, three for failure to have municipal waste logs and two each for improper waste identification and failure to have a fire extinguisher, the state said.
The Bigler, Pa.-based company declined to comment on the fines.
"The penalty today underscores our resolve to make Pennsylvania highways a safer place and to continue our tough enforcement efforts against waste haulers," said DEP Secretary David Hess. Transport Topics
(Click here for the full press release.)
Crude Oil Price Slips as War Fears Ease
The price of crude oil dipped almost 3% in international trading Friday after the United Nations and Iraq said they had constructive talks on weapons inspections, Bloomberg reported.The price of crude oil is very sensitive to geopolitical events, especially events in the Middle East. It is important for the trucking industry to monitor the price of crude because of its impact on refined products like diesel fuel and gasoline.
Despite this dip, oil prices on the International Petroleum Exchange have risen 4% this week, fueled by fears that the United States would expand its war on terrorism to include Iraq.
The price fell Friday to $22.65 a barrel in London, Bloomberg said. Transport Topics
Texas Motorists See Fuel Prices Rise
Drivers in Texas saw gasoline prices jump by several cents a gallon since last week, AAA Texas’ Weekend Gas Watch said Friday.AAA Texas spokesperson Rose Rougeau said the increases in prices were caused by more demand as people begin taking spring break trips and vacations. She also said price increases will likely continue as the economy recovers and the summer driving season begins.
Around San Antonio, the price of gas rose 3.5 cents to $1.06 per gallon, while around Corpus Christi, the price leapt 6.1 cents to $1.115. Austin and Dallas reported modest increases of 1.8 and 1.7 cents per gallon, respectively. Transport Topics
(Click here for the full press release.)
FMCSA Still Considering TCA's Pilot Program
Although a pilot program that would put 18-year-olds behind the wheels of big rigs stalled in the aftermath of the Sept. 11 terrorist attacks, it is still being considered by the Federal Motor Carriers Safety Administration, the San Jose Mercury News reported Thursday.Federal rules require truckers to be at least 21 to haul cargo across state lines, but 18-year-olds are allowed to drive trucks in many states.
Under the Truckload Carriers Association's program, about 1,000 drivers between 18 and 21 would undergo 48 weeks of classroom instruction, in-the-cab training and apprenticeship. No driver would be able to get behind the wheel alone until he or she turns 19.
The trucking industry believes this program is one way to address the driver shortage. It is unclear when the FMCSA may make a decision, the article said. Transport Topics
Rail Intermodal Loadings Near 2001 Pace
Loadings of intermodal trailers and containers on the nation's railroads are poised to surpass the figures reported last year, standing only 0.1% off the pace after nine weeks, the Association of American Railroads reported Thursday.Intermodal is the segment of the railroad business most directly competitive with long-haul trucking.
In the nine weeks ended March 2, trailer and container loadings totaled 1,480,676, compared with 1,481,890 in first nine weeks of 2001.
Trailers loaded were 7.8% fewer than in the previous year, while container loadings were 3.2% higher, AAR said.
For the single week ended March 2, trailer loadings ran 6.1% behind the corresponding week of 2001 and containers ran 12.3% ahead. Total loadings were 180,958, which was 6.6% ahead of the 169,822 loaded during the same week last year. Transport Topics
