A.M. Executive Briefing - Dec. 4
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Fed May Try to Head Off Slowdown
The Federal Reserve's fight against inflation may be waning in favor of heading off a slowdown, the Wall Street Journal reported Monday.If the Fed lowers interest rates, credit access could become easier for trucking companies and owner-operators, and the value of their trucks and other assets could rise as well.
A Fed official acknowledged on Friday that the economy is slowing, according to the Journal. The Fed's rate-setting open market committee meets for the last time this year on Dec. 19. Transport Topics
Iraq Resumes Oil Production
Iraq, the world's third largest oil producer, began pumping oil Monday after a three-day halt, Bloomberg reported.Iraq stopped exports on Friday after imposing a plan that avoided United Nations monitoring of its oil exports. The plan involved Iraq charging buyers a premium of 50 cents per barrel of oil then putting the funds into an Iraqi bank outside of UN control, the wire service noted.
Crude oil was still adjusting from Friday's halt. In early Monday trading, London crude oil prices fell 5.4% to $30.17 per barrel. In the United States, oil prices rose 16 cents to $30.33 due to cold weather in the U.S. Northeast.
The Bloomberg story did not specify whether Iraq stopped demanding the 50 cent premium on each barrel of oil. Currently, Iraq is still in negotiations with the United Nations.
Meanwhile, Saudi Arabia, the world's largest oil producer, confirmed that it would help compensate for any oil gap caused by Iraq's boycott. But Kuwait, the world's 6th largest oil producer, said it saw no need for increasing oil production. Transport Topics
U.S. Govt. Proposes Incentives for Domestic Oil Production
While international politics caused waves in the world oil supply this week, the U.S. Department of Interior proposed new incentives for pumping oil in the Gulf of Mexico, Bloomberg reported.The new plan would allow oil producers to get the first 20 billion cubic feet of oil taken from wells without having to pay a royalty to the government. The wells must be 15,000 feet below sea level, Bloomberg said.
However, producers said they do not expect the plan to jump-start massive oil drilling, the wire service noted. Transport Topics
Forward Air Buys Dedicated Transportation Services
Forward Air Inc. announced Sunday that it has purchased the assets of Dedicated Transportation Services, Inc. based in Santa Ana, California. DTSI is a contractor to the air cargo industry, providing both truckload and less-than-truckload surface transportation to its nationwide customer base. DTSI operates a national network comprised of company locations and agent locations serving 70 U.S. markets.
he air freight operations of DTSI will be integrated into the operations of Forward Air, Inc., a subsidiary of Forward Air Corp. (FWRD), which provides time-definite service in the United States and Canada and is based in Greenville, Tenn. Transport Topics
Volkswagen to Make More Trucks
German car and truck maker Volkswagen AG (VOW-FRK) said Monday that it would invest $364 million more in 2001 to meet a growing demand for diesel trucks, Bloomberg said.The demand for diesel trucks has grown since diesel vehicles are replacing gasoline-powered vehicles because of high fuel prices, the article said. Transport Topics
Truck Shortage Possible for Transporting Bumper Crops
High diesel prices and shortage of truck drivers might affect deliveries of late-fall grain harvests, Bloomberg reported.This year, U.S. harvests rose 4% from 1999, requiring a larger need for transporting crops, the wire service noted.
However, the U.S. Agriculture Department said that trucks and other crop transporters do have enough capacity to handle the harvest. Transport Topics
Performance Team Signs $36M Lease in New San Pedro Center
Performance Team Freight Systems has signed a $36 million lease in a new Port Los Angeles Distribution Center in San Pedro, Calif., the site developer announced Monday.PTFS is a division of the Triangle Network, which serves the garment industry with warehousing, shipping, consolidation, and delivery to distribution centers.
The distribution center is still under development. The buildings - one 340,567 square feet, the other 207,000 square feet - both provide 30-foot-high bays.
Construction on the second phase of the $90 million Port Los Angeles Distribution Center will start around the first of the year, according to Overton Moore Properties. It will include two state-of-the-art buildings that provide 1,256,000 square feet. Transport Topics
Headlines From Friday's P.M. Briefing
- DaimlerChrysler, Delphi Announce Factory Layoffs
- Ford Cutting 1Q Truck Production by 4%
- NAPM Survey Shows U.S. Factory Sector Weakening Further
- Teamsters Voting on Summit Logistics Contract
- Oil Expert Says Gas May Cost $3 a Gallon Next Summer
- Project Eases Border Traffic Jams for Truckers
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