A.M. Executive Briefing - June 5
This Morning's Headlines:
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Kansas and Missouri Union Members Approve AWG Contract
According to the Teamsters union, union members in Missouri and Kansas have okayed to a deal with Associated Wholesale Grocers that brings a two-month dispute to an close.About 1,200 people will resume their jobs as a result of their deal, and AWG will be paying lost wages to those who have been locked out, according to Local 245 business manager Jim Kabell.
M.S. Carriers Expects Lower Earnings for Second Quarter
M.S. Carriers, Inc., an Memphis-based irregular route truckload carrier, announced Monday that it expects to fall short of the consensus earnings-per-share estimates of $0.67 for the second quarter of 2000. The carrier blames lower than expected equipment utilization and high fuel prices. Its stock fell about 10% in early trading after the news. Transport Topics StaffThird-Party Owners Keep Landstar Trucking Along
Despite never buying its own fleet of trucks, Jacksonville, Fla.-based Landstar System has managed to build up a successful trucking company thanks to third-party capacity owners.The company contracts with a network of 1,000 independent agents and uses an Internet information system to arrange for drivers to find the loads. Because it does not own the trucks and does not employ its drivers, Landstar has very few salaries to pay and very low capital investment, which leads to minimal expenses and high profits.
With $1.4 billion in annual revenues, Landstar was the most profitable public company in Jacksonville, Fla., in 1999. Jacksonville Business Online (06/05/00); Basch, Mark
Canadian Trucking Magnate Buys Short-Line Railway
Ecologically bent trucking firm magnate Jean-Marc Giguere has sunk five years worth of deal-making and $16 million into reviving the freight service along the historic Quebec Central Railway (QCR).Giguere, in explaining his motivation for the venture, cites that automobiles are responsible for 60% of the global warming stemming from greenhouse-gas emissions. He adds, "When I talk about vehicles, I'm talking about my trucks, too."
While Giguere feels his aggressive marketing strategy and better customer service will improve upon the work of his defunct QCR predecessor, the freight operation is not scheduled to return even minor profits until its third year. Gazette (Montreal) (06/05/00); Wilkin, Dwane
Virginia Trucker Injured By Power Line
According to authorities, a Hayes, Va., truck driver named Kelly Smith was severely hurt recently when he touched a 115,000-volt power line at the York County landfill. As of Friday, he was in critical condition in the burn trauma unit of Sentara Norfolk General Hospital.Neither Virginia Power nor the man's employer, G.D.C. Trucking, a contractor for BFI Waste Systems of North America, had details on the accident, which took place when the driver was in the back of the truck covering his load with canvas.Daily Press (Hampton Roads, Va.) (06/03/00) P. C1; Rosenberg, Patti
Canada's Tri-White Trucking Group Sale Gets Final OK
Toronto-based Tri-White Corp.announced that TCT Logistics Inc. has received financial approval to close the sale of the Tri-White trucking group for $44 million.As part of the financing, Tri-White Corp. has agreed to provide TCT with a $7 million subordinated loan. The deal is set to close by the end of June.The Tri-White trucking group is a leading truckload and high-value carrier in North America, with annual revenue topping $130 million, the announcement noted. TCT Logistics is one of Canada's leading providers of truckload and less-than-truckload line-haul transportation, storage and local distribution services, with focus on the refrigerated grocery products industry. Transport Topics Staff
Compiled by Transport Topics staff and INFORMATION, INC. © 2000
