News Briefs - Nov. 18
The Latest Headlines:
- Nebraska Town Bans Compression Brakes
- Better Engine Sales to Reduce Caterpillar's Layoffs
- Werner Sells Share of Logistics Partnership to J.B. Hunt
- Crude Oil Prices On Concern About Iraq’s Inspection Response
- Survey Says Hiring Will Increase in 2003
- Better Engine Sales to Reduce Caterpillar's Layoffs
Nebraska Town Bans Compression Brakes
The city council in Elkhorn, Neb. voted Nov. 12 to ban truck drivers from using compression brakes because of the noise they make if not muffled properly, the Omaha World-Herald reported.Located 30 miles from Omaha, Elkhorn has three state highways that go through the city. Drivers caught using the brakes within city limits face up to a $500 fine, six months in jail or both.
The Nebraska Trucking Association said that compression brakes are not inherently noisy, but problems occur when they are modified or defective, the World-Herald reported.
Better Engine Sales to Reduce Caterpillar's Layoffs
Engine maker Caterpillar Inc. said Nov. 15 that better-than-expected demand for its on-highway truck engine in the fourth quarter will force the company to reduce the number of its previously announced layoffs and temporary factory shutdowns.The Peoria, Ill.-based company said that at several facilities in Illinois and Georgia, scheduled layoffs will either be shortened or cancelled entirely.
“The truck engine market continues to be extremely volatile following the implementation of new emissions regulations by the U.S. Environmental Protection Agency on Oct. 1,” Caterpillar said in a release. “While it is possible that some manufacturing shutdowns will occur in the first quarter of next year, it is too soon to speculate on the number or extent of those shutdowns.”
On Oct. 14, Caterpillar said that as many as 3,270 employees could be laid off (Click here for related coverage.).
"While the North American trucking industry has experienced a significant drop in post-Oct. 1, 2002 sales, our customers continue to demonstrate extremely high confidence in the reliability and proven technology of Cat truck engines," said Richard L. Thompson, Caterpillar group president with responsibility for the company's engine business. Transport Topics
(Click here for the full press release.)
Werner Sells Share of Logistics Partnership to J.B. Hunt
Werner Enterprises and J.B. Hunt said Nov. 15 that they have reached a deal for J.B. Hunt to buy a share of Werner’s stake in the logistics partnership Transplace.The deal calls for Werner to sell about two-thirds of its 15.28% stake in Transplace to J.B. Hunt effective Dec. 31. Financial terms of the agreement were not released.
Werner will surrender its seat on the board of Transplace, and the partnership will release Werner from restrictions on entering the logistics market.
J.B. Hunt and Werner, along with Covenant Transport, Swift Transportation and U.S. Xpress Enterprises, formed Transplace in June 2000.
J.B. Hunt is ranked No. 14 and Werner is ranked No. 19 on the 2002 Transport Topics 100 listing of the largest trucking companies in the United States and Canada. Transport Topics
(Click here for the full press release.)
Crude Oil Prices On Concern About Iraq’s Inspection Response
The price of crude oil rose on traders’ concern that Iraq would attempt to impede United Nations weapons inspectors, hastening the onset of a possible war in the oil-rich Middle East, Bloomberg reported Monday.Crude oil is distilled down to motor fuels like gasoline and diesel, and price changes are often passed down to consumers.
Several traders feel, according to Bloomberg, that if Iraq fails to fully comply with the UN resolution concerning weapons inspections, then the United States and Britain will be more likely to seek a military solution.
In electronic trading on the New York Mercantile Exchange, the price of crude oil for December delivery rose 27 cents, or 1.1%, to $25.78 a barrel. Transport Topics
Survey Says Hiring Will Increase in 2003
A survey by staffing and employment firm Manpower Inc. released Monday shows that companies plan to hire slightly more people in the first few months of 2003 than they did this year, the Associated Press reported.Though companies are still uncertain of how the economic recovery is going, Manpower said that 20% of those that responded to their quarterly survey said they plan on hiring more workers in the period between January and March next year, AP reported. Only 12% of companies Manpower talked to said they plan on cutting employees in that same timeframe.
Increased hiring can increase consumer confidence and spending, both of which can contribute to increased demand for trucking services by spurring the economy.
After seasonal adjustments, Manpower said that hiring expectations for the first quarter are better than the expectations going into the two previous quarters, AP said. Transport Topics
