A.M. Executive Briefing - Dec. 5
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National Diesel Price Average Drops
The U.S. national average diesel price dropped 2.3 cents to $1.622 per gallon, the first drop in three weeks, the Department of Energy reported late Monday. Last week, the national average was $1.645, while the lowest in the past month has been $1.60.The highest price for diesel was in California, where the average was $1.87 per gallon, an almost 2 cent drop from last week. The Gulf Coast region had the lowest diesel price with an average of $1.57 per gallon.
The Gulf Coast also had the most dramatic change in price with a drop of more than 3 cents per gallon, compared to last week. Transport Topics
U.S. Expected to Appeal Nafta Truck Ruling
The United States will probably appeal a ruling made by a North American Free Trade Agreement panel last week allowing Mexican trucks to travel within U.S. borders, reports the Mexican paper El Economista/Infolatina.The story, citing comments by a source at the U.S. Department of Transportation, said that the department is reviewing the panel's ruling and that an appeal is feasible.
Last week, the panel said U.S. restrictions keeping Mexican trucks close to the border violated Nafta. The two sides have until mid-December to respond to the ruling. Transport Topics
Navistar Reports Decreased 4Q Earnings
Truck manufacturer Navistar International Corp. (NAV) said Tuesday its profit from operations in its fiscal fourth quarter fell to $1.41 per share from $2.04 a year earlier, as the commercial truck market remained weak. And counting a charge against earnings of $190 million for restructuring, Navistar had a net loss of $105 million or $1.77 per share in the period that ended Oct. 31.
Navistar Chairman John Horne said that with the restructuring in place and a new line of medium trucks coming in February, "we are well positioned for future growth." He added that in the near term, Navistar and the rest of the industry has cut production schedules "to bring truck build rates in line with current demand."
Horne said the weak fourth quarter reflected a drop in demand and truck prices, but that Navistar's truck group was able to boost its overall market share. Transport Topics
U.S. Xpress Claims Forward Air Trying to Avoid Payment
The dispute between major truckload carrier U.S. Xpress Enterprises (XPRSA) and Forward Air (FWRD) continues, as U.S. Xpress announced Monday evening that it was requesting an expedited hearing over money that Dedicated Transportation Services Inc. owed."We were recently informed that most of the valuable assets of DTSI were being sold to Forward Air without the assumption of any of the liabilities of the business," stated Ray Harlin, executive vice president and chief financial officer of U.S. Xpress Enterprises.
Earlier Monday, Forward Air accused U.S. Xpress of trying to hold freight "hostage" in an effort to collect the money ("Forward Air Gets Injunction Against U.S. Xpress," 12/04).
U.S. Xpress Enterprises, Inc. is the fifth-largest publicly owned truckload carrier in the United States. The company is one of the largest providers of expedited and time-definite services in the truckload sector and is also an owner of Transplace.com. Transport Topics
Postal Governors OK 4.6% Rate Hike
The U.S. Postal Service Board of Governors has approved a 4.6% increase in postal rates, including a one-cent boost in first-class stamp prices, Bloomberg News reported. The two-pound Priority Mail rate will go up to $3.95, and its half-pound Express Mail package rate will rise to $12.25. The rate increases will take effect Jan. 7.
The board asked the Postal Rate Commission to reconsider additional increases - including boosts for other package rates - that would nudge the overall increase to 6%, the news service reported.
The lower recommendation would cut about $740 million from the extra revenue sought by the postal service, according to Bloomberg. The Postal Service lost $199 million in its last fiscal year. Transport Topics
Yellow Freight Expands Delivery Service in Northeast, Canada
Yellow Freight System, a national truckload carrier, said it has made changes in its network to bolster its ground delivery capabilities in the Northeastern U.S. and Can-ada. The company said it has reconfigured 23 terminals that feed into its Buffalo, N.Y. distribution facility to expand the range of its two- and three-day Standard Ground Service in the Northeast and Canada. Changes include hiring 100 additional drivers so drivers can work in shifts.
Yellow said that it expects to bring this expedited service to other regions in 2001. Transport Topics
Canada's Central Bank Sees Inflation Risk
Inflation still threatens the Canadian economy, the Bank of Canada warned Tuesday as it left the benchmark lending rate unchanged at 6%, according to Bloomberg News.The central bank sees Canada's economy coming up against the limits of what it can produce, in part because of "robust" domestic demand, Bloomberg reported.
The Bank of Canada is equivalent to the Federal Reserve in the United States, and tries to keep core inflation between 1% and 3% a year. In October, core inflation rose at 1.5%. Transport Topics
Chrysler to Reduce Production at Ontario Minivan Plant
A Windsor, Ontario, plant that produces Chrysler minivans will reduce its output this week by 18%, the Associated Press reported Tuesday.The plant will build 6,000 minivans a week, instead of the 7,350 it normally churns out, according to AP. This means fewer runs for auto haulers.
The company previously announced a series of plant idlings and production cuts for December to reduce inventories, including those of light trucks. Transport Topics
I-5 Bridge in Oregon Undergoes Repairs
During December, trucks traveling ona portion of Oregon's Interstate 5 near Roseburg should expect delays for bridge repairs, the Oregon Department of Transportation said. I-5 is the heavily traveled north-south route along the U.S. West Coast. The repairs will occur south of Eugene on the bridge over the Umpqua River. The construction will require trucks to slow down to 45 miles-per-hour. Additionally, ODOT requests trucks with heavy loads to take detours, such as taking US 97.
Beginning Jan. 2, traffic will be restricted to one lane in each direction. Transport Topics
Headlines From Yesterday's P.M. Briefing
- U.S. Economy Slowed in October
- Heating Oil Prices Rise 8%
- Nine Ocean Carriers Form Internet-Based Network
- Forward Air Gets Injunction Against U.S. Xpress
- Safeway Warehouse Strike Ends, Hourly Driver Pay Rejected
- Ward Trucking Wins ATA Award for Lowest Accident Rate
- Chicago Hillside Bottleneck Lanes Should Open Monday
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