News Briefs - Oct. 7
The Latest Headlines:
- Navistar, UAW Resume Talks
- Airborne Doubles Weight Limits for International Express Service
- Morgan Group Likely to File for Chapter 11
- Possible Terror Attack Boosts Oil Prices
- Logistics Management, GE Settle Loan Dispute
- Hino Cutting Number of Platforms by 65%
- Airborne Doubles Weight Limits for International Express Service
Navistar, UAW Resume Talks
Truck maker Navistar and the United Auto Workers resumed their contract negotiations Monday, the Financial Times reported.The union and Navistar had agreed to a recess on Oct. 3.
The agreement between the two sides had expired on Sept. 30, but was extended to allow negotiations to go forward.
Airborne Doubles Weight Limits for International Express Service
Airborne Inc. said Monday that it is upgrading its International Express service by doubling the maximum weight and increasing the maximum size of packages that can be shipped by its International Express service.The new limits allow for packages weighing up to 150 pounds and with a maximum girth of 130 inches. The previous limits were 70 pounds and 108 inches.
Airborne Inc. is the parent company of Airborne Express – the No. 3 express package delivery company behind FedEx Corp. and UPS. Transport Topics
(Click here for the full press release.)
Morgan Group Likely to File for Chapter 11
Morgan Group Inc. plans to file for Chapter 11 bankruptcy protection, the company said Friday – just a day after it suspended its transportation operations due to the loss of its insurance.Morgan said in a release that it and its two subsidiaries, Morgan Drive Away Inc. and TDI Inc., plan to file for bankruptcy in “the next few days.”
"The Morgan Group, Inc.'s liability insurance expired at 12:01 a.m. on Oct. 3 and it has been unable to secure replacement liability insurance," the company said. "The Morgan Group, Inc. is required by federal law to cease operating motor vehicles without required minimum levels of liability insurance." (Click here for related coverage.) Transport Topics
(Click here for the full press release.)
Possible Terror Attack Boosts Oil Prices
An explosion that damaged a French oil tanker in Yemen was being investigated as a possible terrorist attack, leading to increased fear of attacks in the oil-rich Middle East. The specter of attacks pushed oil prices over $30 a barrel in pre-opening trading, Bloomberg reported.The tanker was reportedly struck by a boat laden with explosives, a French spokesman in Yemen said. A Yemeni official said the explosion was the result of an accident, Bloomberg reported.
In electronic trading on the New York Mercantile Exchange, oil prices rose as much as 48 cents a barrel to $30.10.
The French ship was loaded with 400,000 barrels of oil when it exploded, Bloomberg said. A risk consultant based in the Middle East told Bloomberg that the incident looked “like a terrorist attack.” Transport Topics
Logistics Management, GE Settle Loan Dispute
Logistics Management Resources Inc. said Monday that it has settled a lawsuit with General Electric Capital Corp.GE Capital sued Logistics Management in October 2001 seeking to recover more than $22 million in connection to a dispute over loan obligations.
Under the settlement, Logistics Management paid GE Capital a sum of $875,000.
Formerly known as U.S. Trucking, Logistics Management filed for Chapter 11 in November 2000 and changed its name in December of that year.
"We feel this settlement is a major accomplishment for the company in that it removes the largest obstacle to the company's rehabilitation,” said Dan L. Pixler, president of Logistics Management. “The company has been restructuring since putting its operating subsidiaries in bankruptcy in November of 2000.” Transport Topics
(Click here for the full press release.)
Hino Cutting Number of Platforms by 65%
Japanese truck maker Hino Motors Ltd. said that it plans to cut the number of truck platforms in offers by 65%, Bloomberg reported Monday.Hino said that by cutting the number of platforms it offers to about 70 will allow it to lower product development costs by 30%, Bloomberg reported. The reduction in development costs will come mainly from a reduced need for new parts.
Hino, which is 50% owned by Toyota Motor Corp., is the largest truck maker in Japan. It has seen sales fall 4.4% since January, Bloomberg said. Transport Topics
