News Briefs - May 20
The Latest Headlines:
- Teamster Members Authorize Strike
- Trailer Bridge Executes Financing Amendment
- Productivity Will Stem Inflation, Stern Says
- Kansas Governor to Sign Fuel Tax Bill
- Crude Oil Price May Fall If Norway Lifts Output
- Ryder, Dallas Paper Sign Contract
- TripPak Expanding to Canada
- Exide Names Muhlhauser New Chairman
- Trailer Bridge Executes Financing Amendment
Teamster Members Authorize Strike
United Parcel Service Inc. workers represented by the Teamsters union overwhelmingly gave its leadership the authority to call a strike if talks fail to produce a contract agreement, Bloomberg reported Monday.The authorization was approved by an estimated 93% of the membership, according to a union spokesman. About 210,000 employees would be affected by a strike.
UPS, ranked No. 1 in the 2000-2001 Transport Topics 100 list of the largest trucking companies, said the vote is a normal part of the negotiating process and it remains confident an agreement would be reached.
Trailer Bridge Executes Financing Amendment
Trailer Bridge Inc. said Monday that it has executed an amendment in its financing agreement with General Electric Capital.The company, which provides trucking and integrated marine freight services, also announced the addition of four new directors to its board. They are: Peter Shaerf, Malcom McLean, Greggory Mendenhall and F. Duffield Meyercord.
The Jacksonville, Fla.-based company has a $15 million revolving credit facility with GE Capital. The amendment Trailer Bridge invoked waived prior non-compliance issues and established new covenants with GE Capital. Trailer Bridge is “confident” it can stay in compliance with the new agreement.
In its board announcements, Trailer Bridge said Shaerf already has joined, and that McLean, Mendenhall and Meyercord will become directors effective May 29. Transport Topics
(Click here for the full press release.)
Productivity Will Stem Inflation, Stern Says
Gary Stern, president of the Federal Reserve Bank of Minneapolis, believe growth in productivity, combined with moderate growth in demand, will keep inflation in check, Bloomberg reported Monday.Trucking is extremely sensitive to economic conditions and signs of growth are good news for the industry.
Like several other voting members of the Fed’s Open Market Committee, Stern said in an interview with the news service that the central bank may wait until at least mid-August to raise interest rates.
Stern also said low inflation and improved profitability will help the economy battle back from recession. Transport Topics
Kansas Governor to Sign Fuel Tax Bill
Kansas Gov. Bill Graves is "likely to sign" a transportation funding bill passed last week, his press secretary said Monday.Governor Graves is to be president and chief executive officer of the American Trucking Associations after his term as governor ends.
Don Brown, told Transport Topics that the signing may not take place for "a couple of weeks." The measure, which raises the states diesel fuel tax to 25 cents a gallon and the gasoline tax to 23 cents a gallon, was passed by the Senate Wednesday and the House Thursday, the Associated Press reported. Transport Topics
Crude Oil Price May Fall If Norway Lifts Output
The price of crude oil may start to fall if, as expected, Norway follows Russia's lead and lifts caps on oil exports, Bloomberg reported.Crude oil is distilled into fuels like diesel and gasoline, making it very important to the trucking industry.
Norway and Russia had joined the Organization of Petroleum Exporting Countries in a reduction of output at the beginning of the year.
However, Russia's prime minister said Friday that the world's No. 2 oil producer will remove its export limits over the next two months to allow Russian oil companies to take advantage of higher world oil prices.
Traders and analysts said that Norway, the No. 3 exporter of crude, will likely end its cuts now that Russia has, Bloomberg reported.
An OPEC spokesman said that the group was not surprised by Russia's decision but added that the cartel believes oil supplies are currently sufficient to meet world demand, Bloomberg said. Transport Topics
Ryder, Dallas Paper Sign Contract
The Dallas Morning News has renewed a multi-year, multi-million dollar contract with transportation and logistics provider Ryder System Inc., Reuters said Monday.Under the contract, Ryder manages the delivery of the newspaper from its printing plants to 15 circulation and distribution centers in the Dallas/Fort Worth Metroplex and throughout four states.
The contract provides 46 drivers, 14 straight trucks, 15 tractors, 29 trailers, fleet management and preventive maintenance services as well as management for 44 independent contractors. Transport Topics
(Click here for the press release.)
TripPak Expanding to Canada
TripPak Express is expanding the range of its document delivery service to Canada, the company said Monday.Starting July 1, the yellow drop boxes will be installed in truck stops across Canada. The launch date is set to coincide with Canada Day, the celebration of Canada's independence.
"From Landstar, Prime and J.B. Hunt, to regional carriers along the border, our customers have pressed us to go international," said Mark A. Cleveland, executive vice president of TMI, the parent company for TripPak Express and TripPak online.
The launch of TripPak's international service will be marked by featuring both U.S. and Canadian flags on the company's drop boxes. Transport Topics
(Click here for the full press release.)
Exide Names Muhlhauser New Chairman
Vehicle battery maker Exide Technologies said Friday that Craig H. Muhlhauser has been named the company’s new chairman of the board.Muhlhauser has been chief executive officer since September 2001. The company said he was elected chairman during a meeting of its board of directors Friday.
He assumes the position vacated by Robert Lutz, who resigned as chairman. Lutz will remain a director of Exide, the company said.
"Craig has shown himself to be a strong and capable leader for Exide, and we are thrilled that he has accepted the chairmanship,” Lutz said. “He has been instrumental in developing and implementing Exide's operational improvements and leading the company's financial restructuring." Transport Topics
(Click here for the full press release.)
