Executive Briefing - April 2
- EGL Wins Military Logistics Contract
- Report: Daimler to Buy Volvo's Stake in Mitsubishi
- CD&L Sells Air Division
- Con-Way to Enter Air Freight Forwarding
- DuPont to Cut 5,300 Jobs
- OPEC Failing to Achieve Output Cuts
- Forwarders Upset by Delta End of Portland-Tokyo Service
- Oil Prices Change Little as U.S. Stockpile Grows
- St. Louis Program Monitors Tired Drivers
- Volvo Recalling Trucks With Inaccurate Ratings
- U.S.-Canada Set to Renew Lumber Argument
EGL Wins Military Logistics Contract
Eagle Global Logistics (EAGL) won a $33 million Defense Department contract to manage freight shipments for the Pentagon in three southeastern states as part of a one-year pilot program beginning July 1.The Houston-based freight forwarder won the contract over 11 competitors, according to an announcement Monday from the Military Traffic Management Command in Alexandria, Va.
EGL will provide third-party logistics services for the U.S. military in Alabama, Florida and Georgia.
The company will have to handle about 50,000 shipments a year. Although the contract is one year, there are two one-year options for renewal. Jonathan S. Reiskin, Transport Topics
Report: Daimler to Buy Volvo's Stake in Mitsubishi
Vehicle manufacturer DaimlerChrysler (DCX) has agreed to boost its 34% stake in Japan's ailing Mitsubishi Motors to more than 37%, by buying the 3.3% interest held by Swedish truck maker Volvo (VOLVY), according to a Japanese news report cited by Reuters and Bloomberg.
Reuters said the news is carried in the Tuesday edition of the Japanese financial daily Nihon Keizai Shimbun.
The report noted that this transaction will make Daimler the largest shareholder of the Japanese company, topping the 34% interest held by the Mitsubishi group.
Only last week, Nikkei noted, Mitsubishi President Takashi Sonobe played down speculation in the financial markets that Volvo might sell its stake in Mitsubishi and scrap plans for a truck and bus joint venture with the money-losing Japanese vehicle maker. Transport Topics
CD&L Sells Air Division
CD&L Inc. (CDV), a leading provider of time-critical ground delivery services, said it is selling its air division, Sureway Worldwide, for an undisclosed sum.Chairman Albert W. Van Ness, Jr. said a former owner of Sureway approached the company with the proposal. CD&L said will use the money from the deal to pay down their senior credit facility.
CD&L is ranked number No. 77 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
Con-Way to Enter Air Freight Forwarding
Con-Way Transportation Services said Monday it will enter the air freight forwarding business next month with the opening of Con-Way Air Express.
The startup company will have 13 service centers, each with its own dedicated operations and sales staff, plus an agency network to cover the entire United States and Puerto Rico.
Con-Way, which is best known for its less-than-truckload operations, is a subsidiary of CNF Inc. (CNF).
CNF also owns Emery Worldwide, which is domestic and international air freight service.
CNF is ranked number No. 3 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
DuPont to Cut 5,300 Jobs
Chemical products manufacturing giant DuPont (DD) said Monday it will reduce its global workforce by 4,000 permanent employees, and will also cut 1,300 contract employees.The company also said it would speed up efficiencies under way in its polyester and nylon production units, shutting down some older and less-competitive operations.
DuPont blamed the reductions on weak sales in the U.S. apparel and textile markets, which rely heavily on trucks to transport both raw materials and finished goods. Transport Topics
(Click here for full press release.)
OPEC Failing to Achieve Output Cuts
The Organization of Petroleum Exporting Countries had promised to cut production by 1.5 million barrels per day in February, but instead has only delivered a reduction of about 1 million a day, the Wall Street Journal reported.According to preliminary surveys, March's production held steady, despite another pledge from OPEC to scale back production by another 1 million barrels per day beginning April 1.
Analysts believe it won't be long before OPEC members cheat by exceeding their quotas to keep prices high while maintaining market share.
However, while this could potentially cause dissension among members and a price collapse, the Journal said if OPEC can stay united during the next two months as seasonal demand declines, it should enjoy even higher prices later in the year. Transport Topics
Forwarders Upset by Delta End of Portland-Tokyo Service
Oregon Gov. John Kitzhaber has personally asked Japan Airlines, All Nippon Airways and Korean Air to fill the void left after Delta Air Lines (DAL) shut down its two daily flights from Portland, Ore., to Tokyo, the Journal of Commerce reported.Because about 60% of air cargo flies on the bellies of passenger flights, Delta’s cancellations is a hassle for companies that transport cargo from Portland’s International Airport to Tokyo.
Although alternative air shipping services are available from Portland, they do not run as often as Delta did. Other options include shipping the products to Seattle, San Francisco and Los Angeles.
So far, other airlines have told Gov. Kitzhaber they would not be able to carry cargo until 2003. Transport Topics
Oil Prices Change Little as U.S. Stockpile Grows
Crude oil prices changed only slightly Monday as U.S. inventories grew to their highest level in 10 months, Bloomberg reported. U.S. crude inventories rose above 300 million barrels, the highest since last May.In London, Brent crude oil rose eight cents to $24.82 per barrel. In New York, the price for light sweet crude fell 2 cents to $26.27 a barrel.
The price was very close to the Organization of Petroleum Exporting Countries target of $25 per barrel. On March 17, the cartel agreed to cut oil production by 1 million barrels per day, beginning April 1, in order to keep prices above $25.
Following that meeting, an OPEC official indicated that the group, which pumps 40% of the world's oil supply, would consider further cuts if prices continued to drop. Transport Topics
St. Louis Program Monitors Tired Drivers
/h4>St. Louis police have started a six-month program aimed at reducing the number of tired refrigerated truck drivers, the Associated Press reported Monday.
Under the program, city police are randomly stopping drivers and checking their logbooks with toll and fuel receipts to determine how long the driver has been on the road.
If the driving time exceeds 10 continuous hours, the driver is ordered to stay off the road for at least the next eight hours.
he program is being used as a way to enforce current laws dealing with the hours truck drivers are allowed to be on the road. Transport Topics
Volvo Recalling Trucks With Inaccurate Ratings
Volvo Trucks North America (VOLVY) confirmed Friday it has begun voluntary recalls of trucks that were shipped with inaccurate front axle weight ratings.
Also, it has asked the National Highway Traffic Safety Administration to open a preliminary evaluation regarding a petition filed by the Owner-Operator Independent Drivers Association, covering trucks made between 1989-2000. (See Executive Briefing, March 28)
The company says it is the quickest and fairest way to bring that matter to a close.
Last week, Volvo issued a recall for 1,577 VN series model trucks manufactured between November 22, 1997 and August 28,1999 because of complaints that about the front axle. (See Executive Briefing, March 27)
(Click here for the full press release.)
U.S.-Canada Set to Renew Lumber Argument
Just hours after the Softwood Lumber Agreement, which limited Canadian lumber exports, ended on Sunday, the first unrestricted truckloads of Canadian lumber began heading to U.S. border points.However, the Coalition for Fair Lumber Imports, a group representing U.S. lumber interests, plans to file anti-dumping petitions against Canadian lumber on Monday, the Vancouver Sun reported.
U.S. lumber companies claim Canadian lumber is subsidized, which has hurt their industry. The Canadian lumber has been dumped into the U.S. market at prices below cost.
Canadian lumber accounts for one-third of all lumber used in the United States. Some trucking companies are expecting more shipments because of the end of the agreement.
However, they are concerned a renewed trade war could result in duties on Canadian wood, which could potentially hurt their business. Transport Topics
