A.M. Executive Briefing - Oct. 16
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Nine Companies Get SPR Oil, 2 Denied
The U.S. Department of Energy completed deals with nine companies for the release of oil from the Strategic Petroleum Reserve Saturday, but had to reopen bidding for the contracts of two smaller companies that failed to provide the necessary letters of credit, the Associated Press reports.The first 500,000 of 23 million barrels of crude oil began to make its way to distributors Saturday from the Bryan Mound facility, where part of the SPR is stored, the story said.
However, the Energy Department will reopen bidding Monday for seven million barrels that had been under contract to Euell Energy Resources and Lance Stroud Enterprises, AP said. The winning bids will be announced Monday, Oct. 23.
Intrenet Will Audit Recent Financial Statements
Flatbed carrier Intrenet Inc. (INET) announced late Friday that the audit committee of its board of directors will review the accuracy of several of the company's recent financial statements.
Intrenet operates several subsidiaries, including Roadrunner Trucking, Eck Miller Transportation, Advanced Distribution System, Roadrunner Distribution Services and INET Logistics.
A special legal counsel and forensic accountants will review Intrenet's 1998 and 1999 financial statements and the reports of Arthur Andersen LLP, the company said, adding that until the completion of the review those statements should not be relied upon.
The review will focus on Intrenet subsidiary Advanced Distribution System, and could reduce the net income to approximately $1.3 million and earnings to about 9 cents per share in an undetermined period, the company said. Transport Topics
Oil Prices Hold Steady Near $33 Per Barrel
Crude oil prices continued to linger around $33 per barrel due to continued concerns that Middle East peace efforts may not solve the tensions in that oil-producing region, Bloomberg reported Monday.U.S. crude fell as much as $1.49 to $33.50 on the New York Mercantile Exchange, the largest intra-day drop since Sept. 25, the report said. In London, Brent crude had fallen as much as 57 cents before going back up eight to $32.60 per barrel on the International Petroleum Exchange, according to Bloomberg.
Meanwhile, the Middle East Economic Survey revealed that OPEC production increased 1% in September, mainly on Iran's 360,000-barrel-per-day increase, another Bloomberg report said.
Oil ministers from Saudi Arabia, Kuwait, Qatar and the United Arab Emirates gave assurances again that oil production will not be disrupted because of Mideast violence, the Associated Press reported. Saudi oil minister Ali al-Naimi also said OPEC will boost production a fourth time this year if prices remain above $28 per barrel for another two weeks, according to Bloomberg. Transport Topics
Dept. of Energy Completes Heating Oil Reserve
As the U.S. Department of Energy began releasing crude oil from the Strategic Petroleum Reserve to its contract-winners this weekend, it also completed a delivery of heating oil to the Northeast, the Associated Press reported.Heating oil and diesel fuel are very similar, and disruptions to the supply of one strongly affects the other. Both will be very much in demand in upcoming months, as colder weather hits the United States and the trucking industry enters its peak season.
The last 67,000 barrels of heating oil were delivered to emergency storage facilities in New Jersey and Connecticut, completing a two-million-barrel stockpile, the story said. Forecasters are calling for a normal winter, which would mean colder temperatures than the past three winters, which were relatively mild. The emergency stockpile in the Northeast was created to prevent supply disruptions, as inventories in that area are already quite low. Transport Topics
Fuel Surcharges Help Boost J.B. Hunt in 3Q Despite Higher Costs
Despite higher fuel costs, which have challenged every trucking company in recent months, J.B. Hunt (JBHT) reported Monday increased third quarter earnings over the same period in 1999.The Lowell, Ark.-based carrier reported third quarter earnings of $9.1 million or 26 cents per diluted share, up from $5 million and 14 cents per diluted share in the third quarter of 1999. Those results topped analysts' estimates for the quarter.
The company said it was able to overcome increased expenses from higher fuel costs through fuel surcharges.
J.B. Hunt offers dedicated fleet, over-the-road and intermodal services, as well as third-party logistics services through Transplace.com. Transport Topics
Chevron Will Buy Texaco for $35 Billion
The No. 2 and No. 3 U.S. oil companies will together become the world's fourth-largest oil company when Chevron (CHV) purchases Texaco (TX)Texaco for $35 billion, the Associated Press reported Monday.The combined company would be called ChevronTexaco Corp. and would have $66.5 billion in revenue based on 1999 figures, the story said.
To alleviate antitrust concerns and win government approval for the purchase, ChevronTexaco will likely have to sell off several refineries and gas stations, as the deal would give the company control of one-third of the West Coast refineries and 40% of that region's gas retail market, AP noted. Transport Topics
Averitt Express Opens New Va. Centers
Cookeville, Tenn.-based Averitt Express announced Friday it has opened two new Virginia service centers in Winchester and Wytheville. With these new facilities, Averitt now has six service centers in Virginia, serving more than 2,000 zip code points. Service in several of the state's transportation lanes will improve from two-day to one-day service, the company said.
Ron Zimmerman, Averitt's Virginia regional director, said the company plans to increase its service in Virginia to offer complete statewide coverage within six months.
Averitt provides less-than-truckload, truckload, expedited (ground and air), logistics, and international transportation services. Transport Topics
Lynden Acquires 4 Livingston Sites
Lynden Logistics announced Friday it has acquired four of Livingston Inc.'s Canadian distribution facilities.These facilities – in Vancouver, Calgary, Toronto and Montreal – will give Lynden an additional four warehouse facilities. Lynden will offer order fulfillment, warehousing, distribution, customer invoicing and transportation management services from these acquired sites.
Lynden Logistics is a Lynden International Logistics company; other Lynden companies provide logistics and transportation services such as domestic and international air forwarding, marine transportation, C-130 Hercules aircraft operations and trucking. Transport Topics
DOT Eyeing Changes in Tanker Fill Line Rules
The Department of Transportation will look next year at regulatory changes for tanker truck pipes, due to recommendations from the National Transportation Safety Board, the New York Times said Saturday. NTSB investigators say a recent recent gasoline tanker accident, in which a New York-area woman was killed, may have ruptured those pipes, the newspaper reported.The pipes run beneath the tanker truck and are used to fill and empty the tank. They may contain as much as 50 gallons of fuel separate from the tanker itself, and have been blamed for explosions during collisions, the Times said.
The report noted that one company makes a patented device that pumps excess fuel out of those pipes. However, only one major petroleum company, Sunoco, seems to be planning a voluntary adoption of the approach, buying devices for 60 of its trucks, the Times said.
A handful of small trucking companies in the Northeast has also installed the devices, the paper said. Transport Topics
Chile's Truckers May Strike Tuesday
Truck drivers may strike across Chile Tuesday in an attempt to convince the government to lower fuel prices, according to a La Tercera newspaper report carried by Bloomberg Monday.As it is for truckers worldwide, the increasing price of fuel is making the Chilean truckers' livelihood less profitable.
The truckers plan to take about 8,000 trucks and blockade roads in principal Chilean cities, such as port towns Valparaiso and San Antonio, the story said. Once a strike begins, the truckers will attempt to negotiate with the government, the newspaper said. Transport Topics
FedEx Ground Launches New Data-Collection System
Small-package carrier FedEx Ground announced Monday it is implementing a new data-collection system.
The project cost the company $80 million and will provide FedEx Ground with on-van computers, enhanced handheld scanners to electronically capture delivery information, wireless local area networks at all FedEx Ground facilities and wearable ring scanners. Proof of delivery signatures will also be available through the Internet.
FedEx Ground is a subsidiary of FedEx Corp., (FDX) a global provider of transportation, logistics, e-commerce and supply chain management services. Transport Topics
Ryder System Acquires Singapore's Ascent Logistics
Logistics and transportation management service provider Ryder System Inc. (R) said Monday it has acquired majority control of Ascent Logistics Pte. Ltd., for an undisclosed amount.Ascent Logistics is based in Singapore and offers logistics and supply chain management services, with key customers in the electronics, branded goods and pharmaceuticals industries.
Ryder will use Ascent as its Asian regional headquarters, the company said. Transport Topics
Headlines From Friday's P.M. Briefing
- DaimlerChrysler Acquires Detroit Diesel
- LA Transit Workers Turn Down MTA Offer
- Europe May See More Trucker Protests
- Rubber Manufacturers Association Wants Increased Tire Safety Standards
- EU Says "Not Now" Again on Tapping Reserves
- Cheney Meets With Truckers on Campaign Stop
- Urbanfetch.com Ceases Home Delivery Operations
- PLM International Approves Partial Liquidation Distribution Plan
- Expeditors International Expects to Beat Expectations
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