News Briefs - May 9
The Latest Headlines:
- Highway Crashes Cost U.S. $230.6 Billion, NHTSA Says
- Missouri, Kansas Debate Tax Hikes
- Trucker Charged After Wild Ride at Border
- FTC Looking at Gasoline Prices
- Minn. Timber Truckers Seek Relief from Stops
- Midwest Inventory Drop Triggers Oil Price Spike
- Heartland to Buy Great Coastal
- Quality Unveils New Pay Plan
- Expeditors Income Up 5% in 1Q
- Smithway Sees Loss Widen in 1Q, Claims Progress
- Missouri, Kansas Debate Tax Hikes
Highway Crashes Cost U.S. $230.6 Billion, NHTSA Says
Motor vehicle crashes on the nation's highways put a $230.6 billion dent in the U.S. economy each year, amounting to 2.3% of the gross domestic product, says a report released Thursday by the National Highway Traffic Safety Administration.The study based on data from the year 2000, pegged the cost of every death caused by a highway crash at $977,000. Critical injuries in crashes are estimated at $1.1 million each.
The report emphasized the importance of wearing seat belts, estimating that 11,900 deaths and 325,000 injuries could be prevented by their use at a savings of $50 billion.
(Click here for the full press release.)
Missouri, Kansas Debate Tax Hikes
The neighboring states of Missouri and Kansas saw legislation move forward on an array of highway- and transit-related sales and fuel taxes, the Kansas City Star reported Thursday.In Missouri, the House approved a measure that would ask voters to approve a sales tax increase of three-eighths of a cent and a 3-cent increase in fuel taxes. The Senate version would make permanent a 6-cent fuel tax set to expire in 2008.
In a Wednesday night vote, the Kansas Senate passed sales measures that totaled about $293 million. A fuel tax increase, along with higher vehicle registration fees, aimed at financing the state’s transportation program, had cleared the Senate Tuesday, and awaits House action.
The Kansas House has already rejected the sales tax increase proposal, but the measure will now be returned to the House where it is expected to be assigned to a conference committee that will attempt to negotiate a compromise. Transport Topics
Trucker Charged After Wild Ride at Border
A truck driver was arrested on May 1 at the U.S.-Canadian border after allegedly driving away from an inspection station with a Customs agent hanging onto the cab of his truck, the Associated Press reported.Although the driver had been ordered to pull over for a secondary inspection, Customs officials told AP he began driving across the Peace Bridge toward Canada. He continued driving at high speeds even after an inspector jumped onto the step at the driver's side window and ordered him to stop, they said.
AP said the driver, identified as Gawain Cole, operates a trucking company out of his home in Scarborough, Ontario.
A search of the truck revealed two plastic shopping bags and one duffel bag full of U.S. currency totaling $207,270
Cole faces charges of failure to report currency in excess of $10,000, assault against a federal officer and use of a dangerous weapon - the truck - to cause physical injury, AP said. Transport Topics
FTC Looking at Gasoline Prices
The Federal Trade Commission is looking at information on more than 60,000 gasoline purchases each day, trying to determine why price spikes occur, the Washington Post reported Thursday.With the summer driving season approaching, federal investigators are trying to figure out why gasoline prices make regular sharp rises and drops. Though the majority of commercial trucks run on diesel fuel, some have gasoline-powered engines, making the price of gas an important factor in the cost of trucking.
FTC Chairman Timothy J. Muris said the agency will be looking at credit card gas purchases in 360 cities nationwide and examine the price of wholesale gasoline in 20 urban regions, the Post reported.
The agency will be specifically investigating to what extent fluctuations in the price of crude oil carry through to consumers. The Post said that the cost of crude oil now accounts for 41% of the price of a gallon of gas. Transport Topics
Minn. Timber Truckers Seek Relief from Stops
Timber haulers in Minnesota are looking for help from a bill heading to Gov. Jesse Ventura's desk, the Associated Press reported this week.The measure would limit the number of times police officers can stop trucks for spot safety inspections, the AP said. Log haulers were complaining that the frequent safety checks were unfair and were causing them to reduce the number of trips they made while mills were open for wood.
The law would still allow officers to stop any truck with obvious load or other safety violations, but would also require officers to give drivers a signed paper after a spot check. That paper would serve as a 90-day waiver for future spot checks, the AP said.
The Minnesota State Patrol is not opposed to the change, the AP reported. Transport Topics
Midwest Inventory Drop Triggers Oil Price Spike
Falling oil inventories in the U.S. Midwest are the cause of a $1.22 per barrel price spike Wednesday, followed by an easing Thursday, Reuters reported.Commercial trucks use gasoline and diesel fuel, both of which are refined from crude oil.
The Midwest is the delivery point for the light crude futures contract and analysts said stocks in the region are falling "at an alarming rate."
A day after the jump, U.S. futures prices retreated 12 cents to $27.73, when Iraq resumed pumping oil for export Wednesday after a month-long ban in support of the Palestinians.
Reuters said the impact of the ban did not begin to manifest itself in U.S. supplies until the past few days, when the national year-on-year surplus fell below one million barrels. Transport Topics
Heartland to Buy Great Coastal
Heartland Express Inc. will acquire the business and some trucking assets of Great Coastal Express Inc., the truckload carrier said in a release late Wednesday.The purchase price was not disclosed, but Heartland said it expects to acquire 428 tractors and 1,664 trailers. Additionally, the company will sublease 68 trailers and obtain access to about 125 owner-operators. Heartland will also lease Great Coastal's terminals in Chester, Va.; Roanoke, Va.; Baltimore and Charlotte, N.C.
During 2001, Great Coastal generated nearly $70 million in revenue.
he two parties expect the sale to be closed by June 1, subject to several closing conditions.
Heartland Express is ranked No. 55 in 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.)
Quality Unveils New Pay Plan
Quality Carriers has unveiled a Contractor Assurance Bonus program that it says can offer independent contractors an assured minimum of $104,000 a year.The C.A.B. Program is paid quarterly as a bonus based against a balance of $26,000 for each quarter. The annual contractor earnings are assured to be a minimum of $104,000, with 95 cents per mile for all dispatched miles, loaded or empty, in addition to Quality's paid accessorials, the company's press release said.
The program's time at home is based on a ratio of 1.5 days off for every seven on.
Quality is the largest tank carrier in the U.S. Transport Topics
Expeditors Income Up 5% in 1Q
Despite lower volumes and seasonal weakness in January and February, a strong March gave Expeditors International of Washington Inc., a 5% increase in net earnings in the first quarter of 2002.The global logistics company, based in Seattle, reported net income of $22.2 million compared with $21.2 million in the first quarter of 2001.
Peter J. Rose, chairman and chief executive officer, said the company "posted the best March we have ever experienced from an operating income standpoint."
The company reported operating income of $32.6 million compared with $31 million in 2001. Transport Topics
(Click here for the press release.)
Smithway Sees Loss Widen in 1Q, Claims Progress
Truckload carrier Smithway Motor Xpress Corp. said Wednesday that, despite achievement of some performance goals, its first-quarter loss widened to $2 million, or 42 cents per share, compared with the $1.3 million, or 26 cents per share, in the same quarter of 2002.The company said its quarterly revenues, subtracting its fuel surcharge, were down $4.5 million to $41 million in the most recent quarter.
"Despite the loss, Smithway made progress toward accomplishing several key goals during the quarter. We have previously announced our goals of improving the company's revenue per mile, miles per tractor, number of tractors without drivers and van operation performance, as well as continuing our commitment to safe operations," said Chairman, President and Chief Executive Officer William G. Smith.
To that end, Smith said that revenue per loaded mile was up 3% over the first quarter of 2001. Smith continued to say that the Fort Dodge, Iowa-based company has reduced the number of tractors it owns without drivers by 17% through a combination of recruiting and selling off high-mileage trucks.
Smithway is ranked No. 70 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.)
