News Briefs - Aug. 26
The Latest Headlines:
- Sales of New Homes Dip 2.9% in July
- Bush Faces Important Decision on Steel Tariffs
- Iraq Oil Pipeline Repairs May Take Another Week
- Strike by Truckers in South Korea Delays Millions in Exports
- Classic Transport Promotes Groulx
- Bush Faces Important Decision on Steel Tariffs
Sales of New Homes Dip 2.9% in July
Sales of U.S. new homes dipped 2.9% in July from June’s record high pace, the Commerce Department said Tuesday.Increased construction likely means more business for flatbed trucking companies that haul building materials. Also, in the case of home construction, dry van freight can see an increase in demand for the delivery of household appliances and furniture.
Sales of new single-family homes slipped to a seasonally adjusted 1.165 million annual rate -- the second highest pace on record -- from an upwardly revised 1.200 million rate in June. At the current pace, sales for 2003 may reach 1.1 million, exceeding last year's 973,000, the highest ever, Bloomberg reported.
New homes account for 15% of all housing sales. The National Association of Realtors reported Monday that sales of previously owned homes rose 5% in July to a record 6.12 million at an annual pace. Transport Topics
Bush Faces Important Decision on Steel Tariffs
President Bush must soon decide whether to stick with his steel-tariff initiative and risk retaliation by Europe, or slash the tariffs and face a political backlash from steel-producing states, the Wall Street Journal reported Tuesday.These tariffs could discourage steel imports, helping truckers who carry domestic steel, but hurting truckers who ship steel to and from ports.
The administration is under increasing pressure following a World Trade Organization decision last month that the tariffs violate international trade rules. The U.S. has appealed but isn't expected to prevail.
A defeat would pave the way for the European Union to impose $2.2 billion in tariffs on a wide range of U.S products. The EU has threatened to take action within days of a final decision, a step the Bush administration says would break WTO rules, the Journal said.
Many people believe that President Bush would face more serious political consequences by slashing the tariffs than by standing firm against the Europeans and other trading partners, the article said. Transport Topics
Iraq Oil Pipeline Repairs May Take Another Week
Repairs on an oil pipeline from Iraq to Turkey which was sabotaged two weeks ago may take another week, Bloomberg reported Tuesday.Iraq is the holder of the world's second-largest oil reserves. The pipeline, which connects Iraq's northern oil fields to the Turkish Mediterranean port of Ceyhan, transported close to 1 million barrels a day before to the U.S.-led invasion of Iraq on March 20, can now pump about 520,000 barrels a day when it works, Bloomberg said.
The pipeline pumped oil for a day on the weekend before being shut down again. The line was hit by an explosion on Aug. 15, only two days after it re-opened following a four-month halt, Bloomberg said. Transport Topics
Strike by Truckers in South Korea Delays Millions in Exports
The strike by South Korean truck drivers had delayed $419 million worth of exports through Monday, Dow Jones reported Tuesday.Meanwhile, the government said that after five days off the job, some drivers have began returning to work after it threatened to cancel tax benefits for unionized truck drivers.
As of midday Tuesday, container handling at the nation's largest port in Busan remained at half its average daily level, but Gwangyang, another major port, reported it was operating at 71% of normal levels, up from 38% a day ago, according to Dow Jones.
About 30,000 unionized truck drivers began walkouts last Thursday to press for a 30% hike in bulk cement trailer fees and container fees, paralyzing the nation's cargo transportation system. Transport Topics
Classic Transport Promotes Groulx
Classic Transport said it had promoted Daniel Groulx to president from vice president of operations. Besides his duties at the Elkhart, Ind., headquarters, Groulx will head Classic’s Goshen, Ind., office, said Bill Garvey, chief executive officer of the owner-operator-based trucking company.Classic primarily transports recreational vehicles from manufacturers to dealers. It also provides drivers for utility trucks, walk-in step vans and other delivery-type vehicles from manufacturers to buyers such as the U.S. Postal Service and FedEx Corp.
Garvey said the company was expected to generate revenue of about $17 million this year. Transport Topics
This story appeared in the Aug. 25 print edition of Transport Topics.
