Executive Briefing - Feb. 21
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Alternative Diesel Fuels Draw States' Attention
Minnesota legislators could require that soyoil be added to diesel fuel, while in California the Southern States Power Co. is building a plant to make such "biodiesel" fuel. But Arizona has abandoned efforts to mandate use of a modified diesel fuel that will be cleaner-burning but costlier than normal, according to news reports.Farmers, faced with full storage tanks of soybean oil around the Midwest, are trying to persuade legislators to mandate that it be mixed in with diesel fuel.
Minnesota legislators are considering such a plan, but trucking companies say biodiesel blends could damage engines, and add to the price, the Associated Press reported.
Meanwhile, an Arizona legislator has abandoned an effort to require a switch to low-sulfur, low-aromatic diesel in the Phoenix area, according to AP.Transport Topics
AMJ Campbell's Owner Has Profitable Quarter
CamVec Corp., owner of AMJ Campbell Van Lines, reported earnings of three cents (Canadian) a share for the quarter ended Dec. 31.A year earlier, the Mississauga, Ont.-based company reported a 40-cent loss.
AMJ Campbell Van Lines is Canada's largest household and corporate office moving company, operating coast-to-coast in Canada as well as internationally.Transport Topics
(Click here for the full press release.)
Four Companies Pay Total of $5.6 Million in Death
The family of a British man killed by a sleepy trucker in Florida has settled with four companies for a total of $5.6 million, the Associated Press reported Wednesday.The Monday settlement in Florida's Polk County Circuit Court was reached with UPS Truck Leasing, Whirlpool Corp., GPC Driving Inc. and Kenco Lo-gistic Services for the Sept. 23, 1998 wreck near Haines City in central Florida, AP said.
Besides the British man who was killed, two others died in a van that was also hit by the tractor-trailer rig, and three people in his sport utility vehicle were injured.
AP said this is the third settlement in the case so far, since the same companies earlier settled with the families of the other people killed, and the driver is awaiting trail on three counts of vehicular homicide.
The truck's driver told investigators that he had not slept for more than 32 hours. Leek's SUV as well as a van were crushed between Rosario's truck and another tractor-trailer in front of them, according to AP.
UPS Truck Leasing owned the tractor, Whirlpool leased the trailer, GPC Driving hired the driver and Kenco managed Whirlpool's regional distribution center in Orlando, AP explained.Transport Topics
Authorities to Probe BNSF's Injury Reporting
The Federal Railroad Administration said it will investigate why Burlington Northern Santa Fe Corp. (BNI) did not report any cases of carpal tunnel syndrome last year, but later admitted that 125 employees had claimed they suffered from the wrist condition because of their jobs, the Los Angeles Times reported Wednesday.
Federal regulations require railroads to report workplace injuries, and allows for fines for under-reporting. BNSF, which employs 40,000 people, has not reported a case of carpal tunnel syndrome in five years, the newspaper said.
A company spokesman told the Times that BNSF did not report any of the 125 cases because the company determined they were not work-related. But an attorney for the Brotherhood of Maintenance Way Employees said that in 11 cases the union had looked into, a doctor found them to be work-related, and that in one case the railroad had approved and paid for surgery, the Times said. Transport Topics
Ford Says UPS Logistics Deal Saving $1 Bln
Ford Motor Co. (F) announced Wednesday that its 12-month-old alliance with UPS Logistics had cut vehicle transport time by 26% or four days.
On an annual basis, Ford said that is cutting $1 billion from its vehicle inventory costs, and more than $125 million from its inventory carrying costs.
UPS Logistics Group created UPS Autologistics to manage the Ford project. Ford said that by the end of April, the companies expect the network to be fully operational in the United States, Canada and Mexico.Transport Topics
(Click here for the full press release.)
DaimlerChrysler Reported Eyeing Major Changes
Vehicle manufacturer DaimlerChrysler (DCX) is expected to announce Monday a dramatic reorganization that will affect its commercial-truck operations as well as passenger cars, and result in job cuts at Japanese automaker Mitsubishi Motors, news services reported Wednesday.
DaimlerChrysler will create a new "executive automotive committee" to oversee its Mercedes-Benz, Chrysler and commercial vehicle divisions, plus its alliance. The committee would replace its current system of separate managing council for sales, marketing and automotive activities, the Associated Press reported, citing a story from the Financial Times.
AP said the changes will also involve Mitsubishi cutting 8,000 of its 65,000 jobs, citing Wirtschaftswoche, a business weekly. Transport Topics
Freightliner To Sell Unimog in U.S. Market
DaimlerChrysler's (DCX) commercial truck-building unit Freightliner Corp. plans to begin selling a large off-road, diesel-engine vehicle in the U.S. market, for specialized commercial needs and individuals who want unusual things to drive, the New York Times reported.
Although some reports are calling Freightliner's Unimog a larger type of sport-utility vehicle, it will be sold and serviced at Freightliner's 400 dealers that market big-rig commercial vehicles, the Times said.
Freightliner had mentioned last year that it would bring Unimog back. See the August 2000 issue of Utility Fleet Management, p. 34.)
arger than the well-known Humvee, Unimog has long been built in Germany, where it is used mainly for farming and military purposes, the Times noted. It has a 52-gallon fuel tank, and its basic version retails for $84,000.
The vehicle is sometimes also used by utilities needing its ruggedness and four-wheel-drive capabilities for off-road tasks that would overwhelm most pickup trucks or sport-utility vehicles. Transport Topics
Vitran Reports 4Q Gain
Toronto-based trucking and logistics firm Vitran Corp. (VVN) reported earnings of 15 cents (Canadian) per fully diluted share for the fourth quarter, counting unusual charges, compared with 11 cents in the last quarter of 1999.
Vitran President Richard D. McGraw said the company had established solid momentum at its divisions for less-than-truckload shipments.
Vitran is a North American group of transportation companies offering LTL, truckload, intermodal marketing and truck brokerage and logistics services.Transport Topics
(Click here for the full press release.)
Volvo Not Rushing to Shed Scania Stake
Volvo AB (VOLVY) is not rushing to get rid of its stake in rival truckmaker Scania AB, and might spin it off to shareholders, Volvo Chief Executive Leif Johansson said in a presentation to analysts and investors, according to Bloomberg News.
Volvo had agreed to dispose of its 46% stake in Scania within three years, to gain regulatory approval to buy Renault SA's RVI truck.
A 19% stake in Scania is held by Volkswagen, which may buy Volvo's stake, the news service said.
In other alliances, Volvo agreed to pay about $342 million to buy a 20% stake in a Mitsubishi truck and bus venture, Bloomberg noted, only to watch DaimlerChrysler later pay about $1.9 billion for a 34% stake in Mitsubishi.
Volvo's venture with Mitsubishi is no longer a vital priority, now that Renault offers medium-truck expertise, Johansson told the group.Transport Topics
Rush Reports 4Q Loss
Rush Enterprises, operator of the largest network of Peterbilt dealerships in North America, reported a fourth-quarter loss of 23 cents a share, compared with earnings of 66 cents a share in the comparable 1999 period.The San Antonio-based company delivered 1,310 new trucks and 462 used trucks in the quarter ended Dec. 31, down from 1,483 new trucks and 504 used ones in the 1999 quarter. But parts, service and body shop sales increased 21.3%.
The oversupply of used trucks continues to be the main reason for declines in the company's markets, Chairman W. Marvin Rush said.
He noted that the heavy truck industry expects to deliver about 115,000 new trucks in the United States during 2001, compared with 211,147 in 2000 and 248,000 in 1999. Transport Topics
(Click here for the full press release.)
Air Freight Dot-Com iCargo Shuts Down
Online marketplace iCargo, which serves air-freight forwarders, has shut down, the Journal of Commerce Online reported.The company could not get financing for its new software, the article said.
The action reflects the high cost of maintaining an e-commerce platform for air freight industr, the JOC noted. For example, FreightWise, another dot-com in this category, shut down in early February.
Icargo's customers included Emery Worldwide and Nippon Cargo Airlines. Transport Topics
