News Briefs - May 13
The Latest Headlines:
- Oregon Task Forces Says Bridges Need Immediate Work
- Bush Signs Farm Bill
- Oil Demand Will Pick Up, IEA Says
- DaimlerChrysler Considering Purchase of Mitsubishi Truck Unit
- Hiring to Increase, Survey Says
- J.B. Hunt Files to Sell 5.1M Shares
- More Government Spending Pushes Up Deficit, NYT Says
- Bush Signs Farm Bill
Oregon Task Forces Says Bridges Need Immediate Work
An Oregon Transportation Department task force said the state needs to make repairs to damaged bridges or face dire economic consequences, the Associated Press reported Saturday.At least 30 bridges along major shipping routes require trucks to detour or have load restrictions. There are similar problems on 43 bridges on minor routes as well, the AP said.
The Bridge Strategy Task Force is expected to recommend a multiple-phase plan to the Oregon Transportation Commission in a meeting on Tuesday, the AP said.
A total of 309 state-owned bridges are in need of repair or replacement because of some degree of cracking. The repairs could cost as much as $2 billion, the AP reported. Transport Topics
Bush Signs Farm Bill
President Bush signed a six-year farm bill Monday authorizing about $400 million to increase usage of biofuels, including ethanol and soy diesel, news services reported.The bill provides $204 million to expand biodiesel and fuel-grade ethanol production. Another $6 million is earmarked to test bio-based products for purchase by federal agencies.
The remainder of the funds are allocated to educate consumers about benefits of biodiesel, continue research and help farmers buy renewable energy systems.
Fletcher Hall, executive director of the Agricultural Transporters Conference, told Transport Topics farmers can better plan their spending because the bill will cover a multiyear period. Transport Topics
Oil Demand Will Pick Up, IEA Says
Oil demand will pick up in the second half of the year, the International Energy Agency predicted Monday.Prices for diesel fuel and gasoline, used in great quantities by trucks, follow trends in the price of crude oil.
Bloomberg News said the IEA thinks the global economy has "bottomed out" and expects prices to rise again on fears that not enough crude oil will be available to accommodate seasonal increases in refinery runs.
Crude oil prices have risen 30% this year because of production cuts by the Organization of Petroleum Exporting Countries and tensions in the Middle East, Bloomberg said. Transport Topics
DaimlerChrysler Considering Purchase of Mitsubishi Truck Unit
DaimlerChrysler AG may buy the Fuso truck division of Mitsubishi Motors Corp., Bloomberg reported Monday.Citing the German newspaper Handelsblatt, Bloomberg said the purchase of Fuso unit is just one of several options the company is weighing in an effort to expand business in Asia.
The company said there is no timetable set for a decision, Bloomberg reported. Daimler currently owns 37% of the Japanese automaker.
Handelsblatt described the potential purchase as controversial because of Mitsubishi's excessive debt level, Bloomberg said. Transport Topics
Hiring to Increase, Survey Says
Manpower Inc.'s employment survey shows that more U.S. companies are expected to increase their hiring in the third quarter, the Journal reported.Increased employment improves consumer spending which increases demand for trucking services.
The survey, released Monday, polled 16,000 public and private firms in 477 U.S. markets and found that 27% plan to add employees in the third quarter.
At the same time, only 8% plan to cut their current work forces.
In other news, Federal Reserve Chairman Alan Greenspan said Friday that the long-term U.S. economic outlook is increasingly good and the high growth in productivity that began in the mid-1990s is now seen as a permanent upward shift, news services reported.
Greenspan believes information technology has helped lift productivity growth, the Wall Street Journal said. Higher productivity allows companies to produce more and pay higher wages without raising prices. Transport Topics
J.B. Hunt Files to Sell 5.1M Shares
J.B. Hunt said Friday it has filed a registration statement with the U.S. Securities and Exchange Commission to offer 5.1 million shares of common stock.The company will issue and sell 2 million shares and a stockholder will offer the remaining 3.1 million shares, the Lowell, Ark.-based company said.
Proceeds from the sale will be used to reduce the company’s debt and fund certain capital expenditures, the truckload carrier said.
J.B. Hunt is ranked No. 13 on the 2000-01 Transport Topics 100 list of the largest trucking companies in the United States. Transport Topics
(Click here for the full press release.)
More Government Spending Pushes Up Deficit, NYT Says
The Bush administration and Congress are expected to approve further increases in government spending in the coming weeks for defense and for domestic programs such as farm subsidies, the New York Times reported Sunday.If more spending spurs new business activity, it will help increase demand for trucking services.
Economists told the paper that the rise in spending is giving the economy a lift as it comes out of the recession.
But with revenues depleted by the combination of the recession and the tax cut, this spending will probably push the government deeper into deficit for at least the next few years, the Times said. This could hurt the economy in the long-term if it grows too large. Transport Topics
