News Briefs - May 8
The Latest Headlines:
- Navistar May Close Ontario Plant
- Kansas Fuel Tax Bill Advances
- Stonepath Acquires United American in $16.1 Million Deal
- DOE Oil Stock Numbers Track with API Report
- Europe Needs U.S. Upturn, Says World Bank Head
- Teamsters Name Hall to Head UPS Talks
- Crude Prices Rise on Low Inventories, Mideast Concerns
- Kansas Fuel Tax Bill Advances
Navistar May Close Ontario Plant
Navistar International Inc., parent company to International Truck & Engine, may close a heavy-truck plant in Ontario if the plant cannot trim costs, Bloomberg reported.The world's No. 4 truck maker told the Canadian Auto Workers union in a letter dated April 5 that if the Chatham, Ontario plant cannot cut its costs by $28 million, it may be shuttered, Bloomberg reported.
Right now the plant employs 800 workers, down from a mid-1999 high of 2,300 employees. The notification was required under the sides' collective-bargaining contract that expires June 1.
Kansas Fuel Tax Bill Advances
The Kansas Senate Tuesday approved a bill that would help finance the state's transportation program with increases in motor fuel taxes and vehicle registration fees, the Associated Press reported.Trucks pay a large share of taxes and fees associated with transportation funding.
The measure would raise motor fuel taxes to 25 cents a gallon, adding 2 cents to the diesel tax and 4 cents to the gasoline tax. In addition, registration fees for cars and light trucks would rise $5 to $30.
The bill, which now awaits House action, would generate an estimated $434 million through the next seven fiscal years, the AP said. Transport Topics
Stonepath Acquires United American in $16.1 Million Deal
Stonepath Group, a global logistics provider, will acquire United American Freight Services Inc. in a transaction valued at up $16.1 million.Stonepath will pay $5.1 million at closing and make four years of payments, based on the performance of United American.
Headquartered in Detroit, United American provides air and ground distribution as well as order fulfillment services to a client base of manufacturers that includes the leading automotive companies.
Stonepath, based in Philadelphia, provides its services through Air Plus Limited and Global Transportation Services.
Stonepath's press release said the deal will build upon its domestic network and give the company a new time-definite logistics service offering focused on the automotive industry. Transport Topics
(Click here for the press release.)
DOE Oil Stock Numbers Track with API Report
A decline in U.S. oil inventories reported by the American Petroleum Institute report was seconded by the weekly report of the Department of Energy that also showed crude stocks fell during the week ended May 3.Crude oil is distilled into motor fuels like diesel and gasoline, which makes it an important commodity for the trucking industry to track.
The DOE figures actually showed a steeper decline in crude reserves, with a difference of nearly 1.1 million barrels. The government report did show, however, that the United States had 743,000 more barrels of distillate fuels, including diesel, than the industry-backed API statement. Transport Topics
Europe Needs U.S. Upturn, Says World Bank Head
Europe's economy won't improve unless the U.S. economy turns around, President John Wolfensohn of the World Bank told a news briefing Wednesday.Trucks carry goods in international trade and will benefit by an economic recovery.
Wolfensohn said he believes the U.S. has already turned the corner, but expressed doubts as to how strong and lasting the upswing would be, Reuters reported.
Wolfensohn also said he is confident Argentina, due to repay the World Bank around $800 million in outstanding loans by the middle of May, will meet the payment schedule. If Argentina fails to make payment, World Bank rules would not permit new lending, Reuters said. Transport Topics
Teamsters Name Hall to Head UPS Talks
In a move that may signal tougher tactics, the Teamsters Union has named veteran negotiator Ken Hall to take the lead in talks with United Parcel Service, Bloomberg reported.Hall, who is president of Local 175 in Charleston, W.Va., also took over the union's parcel and small package division.
Bloomberg said Hall is best known for helping to orchestrate the 1997 strike that cost UPS $750 million in revenue. Transport Topics
Crude Prices Rise on Low Inventories, Mideast Concerns
A combination of lower-than-expected U.S. inventories and fears of increasing violence in the Middle East sent oil prices climbing Wednesday on world markets, Bloomberg reported.rude oil is distilled into diesel fuel and gasoline, making it an important factor in the cost of trucking.
In trading on the International Petroleum Exchange in London, crude oil jumped to $25.76 after a report by the American Petroleum Institute that showed oil supplies in the U.S. fell 1.4%, or 4.5 million barrels, to 321.1 million.
In trading on the New York Mercantile Exchange, the price of crude for June delivery rose 16 cents to $26.28 Tuesday in expectation of the API report.
Oil prices also rose after a suicide bomber struck in Tel Aviv, Israel, fueling speculation that increasing tension and violence in the Middle East could disrupt oil supplies. Transport Topics
