Executive Briefing - April 11
- California Police Crack Down on Truckers
- Powerful Storms Strike Plains States
- EGL Warns on Earnings After Weak March
- Delaware DOT Plans Traffic Restrictions on Rt. 13
- Crude Oil Prices Fall After Supply Report
- Volvo Turning Attention to Medium-Sized Trucks
- Logistics Management Plans Acquisition of America's PEO, Omni
- Estes Express Buys Allen's Expedited
- TCA Opens Hispanic Driver Campaign
- Justice Dept. Investigating FedEx-Postal Service Deal
- Tenn. to Install Rumble Strips on Highways
California Police Crack Down on Truckers
The California Highway Patrol was keeping its eye on truckers Wednesday as part of “Commercial Enforcement Day,” KRCA-TV in Chico, Calif. reported.Under the program, patrol officers were watching trucks for excessive speed, erratic driving and unsafe turns.
The effort was an attempt to reduce the number of trucking-related accidents. According to the article, one out of 10 fatal crashes in California in 1999 involved a truck. Transport Topics
Powerful Storms Strike Plains States
A powerful spring snowstorm paralyzed part of Colorado and Wyoming on Wednesday, shutting down hundreds of miles of highways and Denver International Airport, the Associated Press reported.
United Airlines was forced to cancel many flights, and was advising customers traveling to Denver to expect delays.
Wednesday’s snowstorm followed a weather system that also spread severe thunderstorms across the eastern Plains, with tornadoes, hail and high wind causing damage from Texas to Nebraska. Transport Topics
(Click here for a press release from United Airlines.)
EGL Warns on Earnings After Weak March
Freight handler EGL Eagle Global Logistics (EAGL) said Wednesday that its “U.S. shipment activity in March was slightly below last year's levels,” and as a result “we expect first-quarter earnings to be significantly less than is currently anticipated by analyst consensus estimates.”
The Houston-based company also said some customers were converting air shipments to truck deliveries. Shippers do that when they want to save money over the costlier but faster air-delivery option.
EGL emphasized that its overall freight business “did not reflect the acceleration normally seen at the end of the quarter,” when March normally has a sharp activity spike after a January-February lull. Transport Topics
(Click here for the full press release.)
Delaware DOT Plans Traffic Restrictions on Rt. 13
The Delaware Department of Transportation has announced that overnight traffic restrictions went into effect April 8 on U.S. Rt. 13 over Sandon Branch north of Smyrna, due to the assembly of the State Rt. 1 bridge over the highway.A single lane of traffic in both directions will be maintained during the construction.
The schedule of restrictions and traffic configurations will be as follows:
UL>
LI>April 16-19, 9 p.m. to 5 a.m. daily – Traffic will be maintained from the northbound side of Rt. 13 with a single lane in each direction.
LI>April 19-May 2, 6 p.m. to 9 p.m. daily – Rt. 13 southbound left land and northbound right lane will be closed.
LI>April 19-May 2, 9 p.m. to 5 a.m. daily – Traffic will be maintained from the southbound side of Rt. 13 with a single lane in each direction.U.S. Rt. 13 runs the length of the state, passing through the cities of Dover and Wilmington. Smyrna is located approximately 5 miles north of Dover. Jennifer Botchie
Crude Oil Prices Fall After Supply Report
Crude oil prices dropped Wednesday after an American Petroleum Institute report surprised traders with a jump in U.S. gasoline inventories, Bloomberg reported.The report, released late Tuesday, said gasoline reserves increased by 315,000 barrels last week. Traders had expected inventories to fall.
In London, the price of Brent crude oil fell 35 cents to $26.15 per barrel. In New York, the price for light sweet crude declined 37 cents to $28.11 per barrel.
This is the first time in seven weeks that inventories increased, the wire service noted. However, analysts say supplies still remain low. Transport Topics
Volvo Turning Attention to Medium-Sized Trucks
With the sale of its 3.3% stake of Mitsubishi Motors for $297 million, Volvo (VOLVY) said it will use the proceeds to develop medium-sized trucks, Bloomberg reported.
Volvo, the No. 2 truck maker, had originally planned to work with Mitsubishi to build trucks beginning this summer.
However, DaimlerChrysler (DCX) said Wednesday it has agreed to buy the stake from Volvo, meaning the Swedish company must now look elsewhere.
Bloomberg said Volvo may turn its attention to Nissan Diesel, the truck-making arm of Nissan Motor Co.
French truck maker Renault is Volvo’s largest shareholder, and would likely be more in favor of this venture because it also owns 22.5% of Nissan Diesel.
Last December, the Justice Department approved Volvo’s purchase of Renault VI, which included Mack Trucks. Volvo said Wednesday that deal provides the same volumes in the medium-heavy segment that Mitsubishi would have generated.
In another report, Volvo AB Chief Executive Leif Johansson said that he expects no improvement in the North American truck market for at least two to three quarters. He also forecasts the European truck market to decline by 10% this year. Transport Topics
Logistics Management Plans Acquisition of America's PEO, Omni
Logistics Management Resources, a Louisville, Ky.-based logistics provider, said this week that it intends to purchase America's PEO and its affiliate Omni Financial Services.The Cherry Hill, N.J.-based companies specialize in employee leasing. Following the intended purchase, it will operate as wholly owned subsidiaries of LMRI.
The deal is expected to be completed later this year. Terms were not disclosed.
(Click here for full press release.)
TCA Opens Hispanic Driver Campaign
SAN ANTONIO — As part of its annual meeting here, the Truckload Carriers Association opened a campaign to recruit minorities as truck drivers.The one-day event opened Tuesday with nine trucking companies offering job applications to interested residents of the local metropolitan area. TCA came to three local Hispanic community groups to organize the job fair.
The association lured in job seekers with radio and television advertising. Local employment counselors have also been given instructional materials in English and Spanish, explaining the opportunities for driving work in the truckload sector of the industry.
In addition to the event, TCA recruitment committee chairman Ronnie Dowdy said the association would be looking for drivers in the African American community in conjunction with the Urban League. Jonathan S. Reisken
Estes Express Buys Allen's Expedited
Richmond, Va.-based Estes Express Lines, which specializes in consolidating and hauling less-than-truckload shipments, said it plans to buy the assets and operations of Augusta, Maine-based freight carrier Allen's Expedited.The transaction is expected to go through later this month. Allen's will continue to operate under this name. It owns a total of six warehouses.
Separately, Estes also said it has opened a new terminal in Columbia, Mo. -- midway between St. Louis and Kansas City -- to help handle overflows from its St. Louis terminal.
Estes was ranked No. 24 on the in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
Justice Dept. Investigating FedEx-Postal Service Deal
The U.S. Justice Department said that it is investigating the $6.3 billion contract between FedEx (FDX) and the U.S. Postal Service, news services reported.
In January, the Postal Service announced that FedEx could place 10,000 pick-up boxes at post offices in 120 cities.
However, rival carrier Emery Worldwide urged the Justice Dept. to investigate because it felt the deal violated anti-trust laws.
Emery, which is a unit of CNF Inc. (CNF), said the coalition would hurt fair competition in delivery service, Reuters said. Emery currently transports some express and priority mail for the Postal Service.
FedEx is ranked number No. 2 and CNF is ranked number 3 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
Tenn. to Install Rumble Strips on Highways
The Tennessee Department of Transportation will begin installing shoulder rumble strips on all interstates and major roads this summer. The devices will alert sleepy truckers and other motorists from veering off the road.The strips are placed near the shoulders, deep into the road. When a vehicle hits the strip, a sound is made to alert the driver they are too close to the side.
“We’ve already seen about a 31% reduction in run-off road crashes on the areas of our interstate where we’ve already installed rumble strips,” Transportation Commissioner Bruce Saltsman said in press release.
The state had begun installing these strips in 1996. The Federal Highway Administration has said that 15,214 car fatalities are caused by run-off crashes, TDOT noted. Transport Topics
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