News Briefs - May 3
The Latest Headlines:
- Court Upholds EPA's 2006 Fuel, Engine Standards
- Ryder's President, CEO Swienton Becomes Chairman
- ISM Service Index Slips to 55.3 in April
- Fed Not Expected to Change Interest Rates
- Toll Hikes on Delaware River Bridges
- Frozen Food Express Narrows 1Q Loss
- Rail Intermodal Up 9.7% in Week-to-Week Match-Up
- NHTSA Recalls International, Isuzu Trucks
- Tariffs on Canadian Lumber Approved
- Vitran Shows Stronger Profits
- Ryder's President, CEO Swienton Becomes Chairman
Court Upholds EPA's 2006 Fuel, Engine Standards
A federal appeals court Friday upheld pollution control regulations for large trucks and for reductions in the amount of sulfur allowed in diesel fuel beginning June 1, 2006, the Associated Press reported.Engine manufacturers had argued that the technology is not available to meet the tougher emission requirements scheduled for 2007.
The regulations were issued in the final weeks of the Clinton administration but were adopted the new administrator of the Environmental Protection Agency, Christie Whitman.
The EPA rule requires refiners to produce diesel fuel that is virtually sulfur-free.
The three-judge panel rejected all the arguments and upheld the regulations as they were originally issued, AP said. Transport Topics
Ryder's President, CEO Swienton Becomes Chairman
Ryder System Inc., the largest commercial truck-leasing firm, said Friday that President and Chief Executive Officer Gregory Swienton has assumed the additional role of chairman of the board.He succeeds M. Anthony Burns, who has retired after 28 years of service with Ryder to become chairman emeritus.
Swienton joined Ryder in June 1999 and was previously senior vice president for growth initiatives at Burlington Northern Santa Fe Corp.
Ryder is ranked No. 4 on the 2000-01 Transport Topics listing of the 100 largest trucking companies in the United States. Transport Topics
(Click here for the full press release.)
ISM Service Index Slips to 55.3 in April
A major index that measures the service sector of the economy showed that expansion slowed during April.The Institute for Supply Management said that its service economy index fell to 55.3 in April, from 57.3 the previous month. The index, which measures the largest segment of the economy, includes such activity as retail, financial, construction and other non-manufacturing industries, like trucking.
Analysts had expected the index to drop to 57, Bloomberg said. As with all ISM indices, figures above 50 indicate expansion.
The small decline indicated to observers that the current economic recovery will be gradual, Bloomberg said. Transport Topics
Fed Not Expected to Change Interest Rates
The Federal Reserve, which meets next week to discuss interest rates, is expected to keep them unchanged well into the summer, USA Today reported Friday after surveying 51 economists.The Fed lowered interest rates 11 times in 2001 to help spur economic activity, which increases the demand for trucking services.
About half the economists surveyed by the paper said they do not expect the Fed to raise its target for short-term interest rates until August, while nearly a quarter said rates will stay at current levels until fall or even later.
Economists said the Fed wants to make sure the recovery is sustainable before making a move. It also wants to make sure tensions in the Middle East and stock and crude oil prices do not hurt the U.S. economy. Transport Topics
Toll Hikes on Delaware River Bridges Delayed
Toll hikes at seven Delaware River bridges have been delayed at least four months while the Delaware River Joint Toll Bridge Commission rebids construction contracts for E-ZPass booths, the Allentown Morning Call reported Wednesday.The increase was expected to take effect in July, but will be delayed until at least November. It is expected to cost the commission $5 million to $6 million in lost toll revenue.
The article said that the commission had voted in December to double fees on its seven toll bridges to cover a $545 million maintenance plan for both the toll bridges and the 13 free bridges it operates. Transport Topics
Frozen Food Express Narrows 1Q Loss
Refrigerated carrier Frozen Food Express Industries Inc. said Thursday that it reduced its net loss in the first quarter to $859,000 from $884,000 in the year-earlier period.
Frozen Food Express’ net loss per share was 5 cents, flat with the first quarter of 2001. The company saw its total revenue slip, to $79.1 from $89.5 million in 2001.
"When you've got the kind of economy we're operating in, with sluggish demand and rising fuel prices, I'll take any kind of improvement I can get, especially in the first quarter, which is almost always our weakest quarter," Stoney Stubbs, chairman and chief executive officer, said in a release.
Basic freight operations showed some improvement, with revenue from trucking operations contributing $77.5 million, down slightly from the $78.3 million the company posted in 2001. The Dallas-based company said when the company’s fuel surcharge is factored in, freight revenue actually increased about 2%.
Frozen Food Express Industries is ranked No. 41 on the 2000-01 Transport Topics listing of the 100 largest trucking companies in the United States. Transport Topics
(Click here for the full press release.)
Rail Intermodal Up 9.7% in Week-to-Week Match-Up
Intermodal loadings on the nation's railroads continued to outstrip last year's numbers, moving 9.7% ahead in the week-to-week comparison, the Association of American Railroads reported Thursday.Intermodal is the segment of the railroad business most directly competitive with long-haul trucking.
In the week ended April 27, trailers and containers loaded totaled 187,912 compared with 171,277 in the corresponding week in 2001.
Trailers lagged 0.5% in the week-to-week match-up, while containers in the current week were 13.9% above those of the previous period.
For the first 17 weeks of the year, loadings totaled 2,887,590, which was 1.5% ahead of the 2,845,758 loaded in 2001. Transport Topics
NHTSA Recalls International, Isuzu Trucks
The National Highway Traffic Safety Administration Wednesday released its list of February recalls, which included heavy- and medium-duty trucks made by two manufacturers.The NHTSA report said certain heavy-duty trucks made by International Truck and Engine Corp. between October 2000 and October 2001 had incorrectly tightened bolts in the rear suspension, on which the nuts could work loose or fall off, causing a problem which could lead to sudden loss of control.
Dealers are to install new nuts and bolts.
Also, it was found that some tilt cab trucks made by Isuzu between August 1998 and August 2000 have a condition in which the clutch master-cylinder pushrod end that attaches to the clutch pedal can wear prematurely.
If the clutch master-cylinder pushrod end wears sufficiently, the clutch would engage. If clutch engagement occurred while the vehicle was stopped, with the engine running and the transmission in gear, and if the brakes were not applied, the vehicle could move.
Dealers will install a new clutch master-cylinder assembly and clutch pedal assembly, NHTSA said. Transport Topics
Tariffs on Canadian Lumber Approved
The U.S. International Trade Commission gave unanimous approval Thursday to tariffs on imports of Canadian softwood lumber, the Associated Press reported.The lumber will be hit with a 27% tariff which could add $1,500 to the cost of a typical new home, construction industry officials told AP. Canadian softwood lumber accounts for about one-third of the U.S. market.
If the tariffs create a trade war, or if prices for homes and durable goods made from wood rise too much, it will hurt the trucking companies that ship lumber to factories or finished goods to stores.
The commission ruled that the tariffs won't go into effect until later this month. Transport Topics
Vitran Shows Stronger Profits
Canadian transportation and logistics firm Vitran Corp. posted first-quarter earnings of $572,348 (U.S.), or about 6 cents per share, an improvement over the $501,103, or 5 cents per share, the company lost during the same period of 2001.
The company said that as a result of new accounting practices relative to goodwill, its 2002 results do not include amortization expenses that would have totaled about 3 cents per share.
In the first quarter, the Toronto-based company had revenues of $73.2 million, down from the $76.7 million the company brought in during 2001.
Based on the 2000-01 Transport Topics 100 listing of the largest trucking companies, Vitran ranks No. 2 among Canadian trucking firms. Transport Topics
(Click here for the full press release.)
