A.M. Executive Briefing - Sept. 1
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i>In observance of the Labor Day holiday, there will be no Executive Briefings on Monday. The briefings will resume Tuesday.
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Death Tax Repeal Down But Not Yet Out
With President Clinton having vetoed a congressional repeal of the estate tax – a.k.a. death tax – Thursday afternoon, Republicans are vowing to try to override Clinton and make it a presidential election issue if they lose that fight, various news agencies report.
This is a significant issue within many industries including trucking, because family ownership of business often means a big tax liability when a family member who is a principal shareholder dies. To pay the taxes due, companies sometimes have to sell off assets or go out of business. So repealing the estate tax has been a priority for small operations from truck firms to farms. Transport Topics
U.S. Jobless Rate Edges Higher Amid More Signs of Slowing Economy
The U.S. unemployment rate for August rose to 4.1% of the labor force from 4% in July, the Labor Department said Friday, and payroll employment turned out to be weaker than analysts had predicted - further signs that the U.S. economy is slowing down.The underlying trend is harder to read than normal because of layoffs of census workers and the strike at telecommunications giant Verizon, but this is the latest in a series of weaker economic indicators.
While that can help trucking companies strapped by interest costs because this all implies the Federal Reserve won't keep jacking rates higher, it also suggests that truck-hauled shipments may weaken or not grow as fast as earlier hoped for. Transport Topics
Hart-Scott-Rodino Waiting Period Expires on Western Star-Freightliner Deal
Freightliner's acquisition of Canadian truck maker Western Star will not be challenged by the U.S. government, as the initial waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired, both companies announced late Thursday.
Neither the Federal Trade Commission nor the antitrust division of the Department of Justice has made a request for additional information or documentary materials regarding the acquisition. Also, the Competition Bureau of Industry Canada has stated that it does not intend to challenge the completion of the transaction, the companies said.
The proposed acquisition by Freightliner – a DaimlerChrysler subsidiary – of all outstanding shares of Western Star can be completed after approval by Western Star's shareholders, the Supreme Court of British Columbia and certain other regulatory agencies. Transport Topics
C.H. Robinson Acquires Trans-Continental
Third-party logistics giant C.H. Robinson Worldwide announced Thursday it has acquired another third-party logistics provider, Minnesota-based Trans-Continental Inc. (TCI).TCI's specialty is refrigerated, less-than-truckload services for perishable food manufacturers – a service offering that a C.H. Robinson official said can now be expanded through the acquisition.
``Refrigerated LTL is a natural extension of what we already do for our customers," said Senior Vice President Barry Butzow. "The refrigerated LTL market is today very fragmented. We believe we can take TCI's service base and scale it out nationally, under our larger sales and operations umbrella." Transport Topics
FedEx to Debut Newest Electronic Shipping Options
FedEx Corp. has unveiled its new FedEx Ship Manager portfolio, the newest electronic of-fering from the shipping giant. The service will debut Sept. 25 for both U.S. and global shipments.FedEx said its customers will be able to access its regular ground, home delivery and express services, plus some other carriers using the new hardware, software and internet-based applications.
FedEx offers transportation, logistics, e-commerce and supply-chain management services worldwide through various subsidiaries. Transport Topics
Most Drivers Say They Are Friendlier Than Others, Survey Reveals
America's drivers believe they are friendly on the road, but that it's the other drivers who aren't as courteous, a new ExxonMobil driving survey reveals.The survey noted "courtesy gaps" of as much as 57 percentage points between how drivers view their driving compared with others'.
It said 59% strongly agreed that they allow other motorists to cut in front of them, but only 23% feel other drivers do the same for them. Most drivers also felt they waved their thanks more than other, and that others did more horn-honking.
The survey also examined drivers' patience at the gas pump. It found that 18- to 24-year-old drivers wanted a faster way to pay for gas, and that younger drivers generally favor such options as a comedy routine offered on machines at the pump, being able to order a burger there, automated pumpers, plus traffic and weather reports at the pump. Some of those options are already being developed by companies that supply truck stops.
The third annual ExxonMobil Driving Survey was conducted by Bruskin Research in July and questioned 1,021 U.S. adults. Transport Topics
Bridgestone/Firestone Update: Strike Possible; More Deaths Linked to Tires
Bridgestone/Firestone continues to face a battle at every turn as its workers may go on strike at nine plants and the National Highway Traffic Safety Administration is linking more deaths to its tires, the Associated Press reports.Workers rallied near the company's Nashville, Tenn., headquarters and at its Decatur, Ill., plant Thursday as the Steelworkers Union of America continued negotiations with the tire maker for a new contract, AP said. A strike at Bridgestone/Firestone's nine plants nationwide will go into effect Saturday if no agreement is reached Friday.
Those plants make tires for cars, light trucks, off-road and farm vehicles, and commercial trucks, a union official said.
Adding to Bridgestone/Firestone's woes is the news that NHTSA's ongoing investigation into possible defects in three brands of its tires now links them to 88 deaths and more than 250 injuries, AP also reported. More than six million tires have been recalled, and that company as well as Ford Motor Co. may face criminal charges in Venezuela regarding the defects, AP noted. Transport Topics
DaimlerChrysler Performance Worries Market Analysts
DaimlerChrysler has stock market analysts increasingly worried about the German-American automotive company.Bloomberg News reported Friday that the company canceled a three-day meeting in Detroit with analysts scheduled for next week. The meeting was an opportunity for it to tell about the company's new products.
Chrysler's earnings in the United States seem to be the cause of analysts' concern, Bloomberg noted. Light truck sales declined by almost 10% in July, and car sales were off as well. Analyst Juergen Pieper of Bankhaus Metzler reportedly called the cancellation a "bad sign" and cut his recommendation on the company from "buy" to "hold."
On Wednesday, the London office of Goldman Sachs reduced its estimates for DaimlerChrysler's earnings through the end of 2001, according to Bloomberg. For this year the estimate dropped from 6.25 euros a share down to 5.69, and for next year Goldman predicted a fall from 6.43 euros a share down to 6.11. Transport Topics
Railroads Impose Surcharge on Containers at West Coast Ports
To help overcome a shortage of domestic trailers and containers – used for the land trucking segment of pre-boxed ocean freight – the Burlington Northern Santa Fe and Union Pacific railroads will implement a repositioning surcharge on empty equipment at West Coast ports, the Journal of Commerce Online reports.The surcharges will only apply in southern California, where the shortage is felt most, but may be extended to northern California and the Pacific Northwest should the railroads deem it necessary, the article said.
The peak shipping season is approaching and Asian import volumes are already 10-15% higher than last year, raising concern over possible equipment shortages, JOC said. Transport Topics
Headlines From Yesterday's P.M. Briefing
- Big U.S. Factory Orders Fall Fits with Economic Slowdown Ideas
- Deere Invests in Truck Technology Supplier XATA
- EU Will Approve Volvo Purchase Of Renault Truck Division, Source Says
- Intermodal Traffic Still On Record Pace, AAR Reports
- U.S. Agency Issues Latest Vehicle Recall List
- Canadian Trucking School Tests Students in Thickest Traffic
