A.M. Executive Briefing - Nov. 15
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Crude Oil Prices Rise as Heating Oil Supply Drops
Crude oil prices increased by more than 2% in London to $33 per barrel Wednesday following a report that showed a decline in the U.S. heating oil supply, Bloomberg reported.According to the wire service, the American Petroleum Institute said that U.S. heating oil inventories last week dropped 1.4% to 46.8 million barrels, 31% lower than a year ago.
The drop in supplies came along with weather predictions that the Northeast - the largest heating oil market in the U.S. - will have a colder-than-normal weather this winter. Temperatures are expected to fall below the average as early as next week.
5,000-Container Backlog in Montreal as Trucker Strike Continues
A backlog of 5,000 containers was piled up Tuesday at the Port of Montreal, and normal operation may not resume for two weeks, Reuters reported Wednesday.The strike by about 900 independent truckers - seeking improvements in pay and working conditions - continues. About 39 companies use the truckers' services.
Although an emergency law from Quebec's provincial government has forced them to let containers move freely in and out of the port, some truckers have countered by failing to show up for work, according to Reuters.
However, about 1,800 containers were handled Tuesday, which is the highest number since the strike began, and well above the 1,200 to 1,500 containers the port handles in a normal day. Transport Topics
Volvo to Reduce Costs by Cutting Some Suppliers
Swedish truck maker Volvo (VOLVY) plans to cut half of its suppliers to cut costs, Bloomberg reported. The company will reduce the number of tire, battery and auto parts suppliers it uses and combine them with Renault SA's (13190-PAR) truck unit. The move is expected to cut costs by $348 million a year, the company said, according to wire reports.
Volvo agreed to buy Renault's truck division in April. The purchase is expected to double Volvo's market share in the U.S. to 24%. Transport Topics
Intrenet Delays 3Q Results
Trucking and logistics firm Intrenet Inc., (INET) said late Tuesday that it will report its third quarter earnings after an accounting investigation is complete.In late October, Intrenet admitted to a possible bookkeeping discrepancy at its subsidiary, Advanced Distribution System. This caused Nasdaq to temporarily suspend trading Intrenet's stock.
Intrenet is continuing the investigation and hopes to finish in 30 days. At that time, it expects to report its earnings, the company said.
Based in Milford, Ohio, Intrenet has four trucking subsidiaries and one logistics provider. Transport Topics
DaimlerChrysler's Zetsche Helped Turn Freightliner Around
A Freightliner veteran who is widely reported to be the incoming chief of DaimlerChrysler's (DCX) U.S. operations, earned a troubleshooting reputation for turning the truck maker around, the Wall Street Journal reported Wednesday.In 1991, Dieter Zetsche was put in charge of Freightliner, but only stayed for one year, the New York Times reported Wednesday.
An electrical engineer and 19-year veteran of Daimler, Zetsche then served the company as chief engineer for passenger cars at Mercedes-Benz, the Journal said.
He has also held the management board position for sales and marketing at DaimlerChrysler.
This month, DaimlerChrysler is assembling a 10-person "alliance committee" to find efficiencies among its various brands, the Journal said. Transport Topics
FreightWise, GE Trucking Announce Web Alliance
FreightWise and GE Trucking Solutions announced a marketing alliance Wednesday to cross-promote the offerings of their Web sites.
GE Trucking Solutions will provide rental, financing and service offerings available through its subsidiaries - Penske Truck Leasing, TIP, GE Capital Commercial Equipment Financing and GE Capital Fleet Services - to Freightwise customers.
In turn, Ft. Worth, Texas-based Freightwise will provide an online marketplace for buying and selling transportation services to GE Trucking Solutions customers.
The companies say the deal offers carriers greater fleet utilization, as well as financing and services to maintain and upgrade them.
Transport Topics
TCT Logistics Reports Lower 3Q Earnings
TCT Logistics, a Canadian trucking and logistics company, reported third quarter net earnings of C$605,187 (US$391,960) or 7 cents per share, down from $693,558 (9 cents per share) last year, the company said.Management said it expects earnings to improve as operating expenses of new acquisitions level off.
TCT's recenty acquisitions - Tri-Line Expressways, Daily Motor Freight and part of Kleysen Transport - increased revenues from $32,639,750 the third quarter last year to $82,331,955 this year, the company said.
Calgary-based TCT provides transportation, warehousing and distribution services. Transport Topics
Amtrak's New Train Bright Spot in Bleak Capital Outlook
Amtrak unveils its high-speed Acela Express with a VIP run Thursday in the Northeast Corridor, but it still suffers capital problems, the New York Times reported Wednesday.
The new tilt train is slated to start carrying ordinary passengers in December, and will only shave 15 minutes from the current Metroliner's 3-hour New York-to-Washington run.
Amtrak's announcement did not say whether the new trains will carry packages, as its other trains do. The company has increased its freight business in recent months to boost its bottom line.
However, Amtrak faces a "grave" capital outlook, the paper said, and one of its major champions on Capitol Hill, Sen. William Roth Jr.(R-Del.) was voted out of office last week. Transport Topics
Headlines From Yesterday's P.M. Briefing
- DaimlerChrysler May Replace Head of U.S. Operations
- Ryder Partners with From2
- NHTSA Putting Pedal to Metal, Contracting Out Research
- US 1 Industries Reports 58% Profit Boost in 3Q
- Grupo Dina Has New Auditors, Board Chairman
- Postal Rate Hikes Affect Package Shipments
- DOT Announces December Financial Reporting Workshops
- IBM to Recycle Computers Via UPS
- Old Dominion To Move Corporate Offices
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