A.M. Executive Briefing - Jan. 3
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Expected OPEC Production Cuts Raises Crude Oil Prices
Crude oil prices rose almost 2% Wednesday as traders expected the Organization of Petroleum Exporting Countries to cut production following their Jan. 17 meeting, Bloomberg reported.Kuwait's oil minister said the country will seek to trim output by 2 million barrels per day or 2.5% of the world's daily production, the article said. The comment followed Saudi Arabia's statement Tuesday also indicating a desire to cut production.
In early Wednesday trading, crude oil prices in London rose 42 cents to trade at $24.72 per barrel, while in New York, prices rose 24 cents by trading at $27.45 per barrel.
Intrenet Closure to Eliminate 1,700 Jobs
Trucking firm Intrenet Inc. (INET) said it will let go of most of its 1,700 employees as it shuts down its trucking operations, Bloomberg News reported late Tuesday.About 1,100 owner-operators will also be affected, the news service reported.
No assets will be available for shareholders, the company told Reuters. Previously announced accounting problems at a subsidiary, Columbus, Ohio-based Advanced Distribution System, had little impact on Intrenet's decision to suspend operations and liquidate, Reuters reported.
The company is cooperating with a lender that holds a first lien on all of its property, and said it could determine if it could satisfy the claims of unsecured creditors.
The smallest subsidiary, INET Logistics, will continue to operate pending its sale, Reuters reported. Intrenet's other subsidiaries include Eck Miller Transportation Corp. of Rockport, Ind.; Roadrunner Trucking of Albuquerque, N.M.; and dry-van carrier Roadrunner Distribution Services, also in Abuquerque.
Intrenet ranked No. 52 on the most recent Transport Topics 100. Transport Topics
Report: DaimlerChrysler, Hyundai to Jointly Build Trucks
German truckmaker DaimlerChrysler AG (DCX) and South Korea's Hyundai Motor Co. plan to sign a deal next week to build light trucks and buses together, Reuters reported Wednesday.In June 2000, DaimlerChrysler bought a 10% stake in Hyundai. However, the truck venture, will give each company a 50% share, the news service said.
The venture, first reported by the German business magazine Wirtshaftswoche, involves a plan to build 120,000 trucks and buses per year by the end of 2002. Although the trucks will be built in Asia, Reuters said DaimlerChyrsler might use its North American plants to build some Hyundai vehicles. Transport Topics
Diesel Average Up 0.7 Cents
Diesel rose 0.7 cents nationally, reversing a falling trend from late November, according to Energy Department figures.The national average price for diesel was $1.522 on Monday, compared to $1.515 on Dec. 25.
The highest prices were in the California subdistrict -- $1.748 -- and the West Coast district at $1.725. New England stood at $1.700. However, all those prices were slightly lower than the previous week.
The Rocky Mountain district was at $1.553 and the Midwest was at $1.486. The Lower Atlantic was even lower, at $1.476. Central Atlantic stood at $1.669. Transport Topics
Office Depot Closing Stores, Updating Warehouses
Office Depot (ODP) is planning to shut 70 office-supply stores in North America, relocate some warehouses and streamline warehouse operations, the company announced Wednesday.Office Depot plans to exit four markets completely - Cleveland and Columbus, Ohio, as well as Phoenix and Boston - meaning fewer runs for truckers hauling freight for the company.
It plans to relocate warehouses in Atlanta and Baltimore, and will invest in warehouse technologies to improve their quality and efficiency, the company said.
It also plans to reduce the number of different items in its retail stores by about 20% and in its warehouses by about 30% by the end of the first quarter, concentrating on keeping items that customers buy most often. It will source in items such as furniture through wholesalers to save space in its warehouses. Transport Topics
Walgreen Plans to Open 500 More Stores
Drugstore giant Walgreen Co. (WAG) plans to open 500 more stores in fiscal 2001, the Wall Street Journal reported Wednesday.The expansion means more business for trucking companies, which is good news following the shutdown of two retail chains, Bradlees and Montgomery Ward.
The Deerfield, Ill.-based company's aggressive expansion plans call for 6,000 locations by 2010, which would nearly double the 3,259 stores it had on Nov. 30, 1999, the Journal reported. Transport Topics
Renault Car and Light Truck Sales Rise 0.4% in 2000
French automaker Renault SA (13190-PAR) reported a 0.4% rise in car and light truck sales in 2000 even though its Western European market declined, Bloomberg reported. Renault's worldwide sales rose from 2.29 million vehicles in 1999 to 2.3 million vehicles in 2000. However, as Europeans bought competitors' models, sales in this market fell 4%.
In 2001, Renault expects to generate 22% of its sales from outside of Western Europe, the story said. It also plans to boost production of diesel engines as demand for diesel-fueled cars increase in Europe. Transport Topics
Hyundai Reports Record Sales in 2000
Hyundai Motor Co. and its subsidiary Kia Motors posted record sales and earnings in 2000, partly due to increased sales in commercial and sport-utility vehicles, Bloomberg reported Wednesday.For Hyundai, sales rose 20.6 percent by selling 1.53 million vehicles, while Kia's sales rose 23.4% by selling 968,363 vehicles.
Increased domestic demand in South Korea helped sales in 2000. However, the auto industry expects demand in Asia as well as North America to decline in 2001, the story said. Weaker demand might lead to fewer vehicles for auto haulers to deliver to dealers and a reduction in the flow of parts to assembly lines. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Manufacturing Falls for Fifth Month, NAPM Says
- Bush Names Abraham to Energy, Chavez to Labor
- Swiss Allow Bigger Trucks on Highways
- Renault, Volvo Deal Initiated
- Truck Leasing Pioneer Ralph Ryder Dies
- Nacco to Close Ill. Forklift Plant
- K-Mart Distribution Workers Sue Over Discrimination
- ArvinMeritor Updates Web Site
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