News Briefs - Nov. 17
The Latest Headlines:
- Merger of Kmart, Sears Creates Third-Largest Retailer
- Truckers Face Detour Thursday in Baltimore
- October Housing Starts Rise 6.4%
- U.S. Xpress to Offer 4.6 Million Shares of Stock
- Illinois House Fails to Override Veto on Speed Limit Bill
- Overnite Corp. Changes Credit Pact
- Truckers Face Detour Thursday in Baltimore
Merger of Kmart, Sears Creates Third-Largest Retailer
Two of the nation’s largest retailers, Kmart Holding Corp. and Sears, Roebuck & Co., have agreed to merge, creating the nation’s third-largest retail chain with $55 billion in annual sales and about 3,500 store locations.Kmart and Sears each generate large volumes of freight and at one time maintained sizeable private fleets. Kmart ranked No. 71 on the 2002 Transport Topics 100 list of the largest private fleets and Sears ranked No. 88. However in recent years, both companies have shifted much of their shipping volume to for-hire carriers.
Company officials said they expected to achieve annual cost savings of more than $300 million through improved merchandising and purchasing clout, as well as improved supply chain and administrative efficiencies.
Wal-Mart Stores, the nation’s largest retailer, ranked No. 2 on the 2004 TT Private 100. Daniel P. Bearth
Truckers Face Detour Thursday in Baltimore
The Maryland Transportation Authority said truck traffic would not be allowed to use southbound Interstate 895 south of Exit 12 on Thursday from 9:30 a.m. until 3 p.m.MTA said truckers wanting to use I-895, the Baltimore Harbor Tunnel Throughway, would be directed to use southbound Interstate 95 or eastbound Interstate 695 as alternate routes.
The road will be closed because of paving just north of the Baltimore Harbor Tunnel’s entrance, MTA said. Transport Topics
October Housing Starts Rise 6.4%
The Commerce Department said Wednesday that housing starts rose 6.4% in October to the busiest pace since last DecemberHousing starts climbed to a seasonally adjusted annual rate of 2.027 million units from an upwardly revised 1.905 million clip in September. Starts had fallen 5.6% the month before.
Rising construction likely means more business for flatbed trucking companies that haul building materials. Also, in the case of home construction, dry van freight can see an increase in demand for the delivery of household appliances and furniture.
Commerce also said permits, a sign of future activity, fell 0.7% to 1.984 million units from a 1.998 million pace in September. Transport Topics
U.S. Xpress to Offer 4.6 Million Shares of Stock
Truckload carrier U.S. Xpress Enterprises Inc. said late Tuesday it planned to offer up to 4.6 million shares of the company's Class A common stock.U.S. Xpress said it filed a registration statement with the Securities and Exchange Commission. It said 2 million shares would be offered by the company and 2 million by selling stockholders including Co-Chairmen Patrick Quinn and Max Fuller.
U.S. Xpress is ranked No. 21 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Illinois House Fails to Override Veto on Speed Limit Bill
A proposal in Illinois to let large trucks go faster on rural interstate highways stalled in the House on Tuesday, Copley News Services reported.The bill, which would have raised the truck speed limit to 65 mph from 55 mph, passed the Illinois House and Senate this spring but was vetoed by Gov. Rod Blagojevich.
Last week, the Senate overrode his veto, but it received only 49 of the 71 votes needed in House, Copley reported.
Supporters of the bill said cars and trucks should have a uniform speed limit on rural highways because traffic safety is better when vehicles are moving at the same speed. However, opponents said a higher speed limit for trucks would result in more severe traffic accidents. Transport Topics
Overnite Corp. Changes Credit Pact
Less-than-truckload carrier Overnite Corp. said its lending group, SunTrust Bank, agreed to amend the carrier’s credit agreement to $250 million from $300 million “to reduce the total credit availability by increasing the revolving loan commitment.”The agreement also allowed Overnite to increase its total commitments from $250 million to $400 million, either by adding lenders or by agreeing with existing lenders to increase their commitments, the carrier said in a filing with the Securities and Exchange Commission Nov. 3.
Overnite ranks No. 17 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
