News Briefs - Jan. 26
The Latest Headlines:
- East Coast Winter Storm Causing Accidents, Delays
- Chicago Reviews Hired Truck Program
- Arkansas Best's Profits Increase
- Wabash to Increase Production As Demand Grows
- Lundberg: Gasoline Prices Up 7 Cents
- FedEx, Postal Service in Delivery Venture
- PGT Trucking Acquires Buffalo Wood
- Chicago Reviews Hired Truck Program
East Coast Winter Storm Causing Accidents, Delays
Snow, sleet and freezing rain made roads treacherous, forced the cancellation of dozens of flights and closed schools across much of the U.S. mid-Atlantic region on Monday, news services reported.There were numerous deadly accidents on highways from Philadelphia to Atlanta following the storm that started on Sunday night.
Another blast of freezing rain was expected to move through much of the region on Monday night. Portions of eastern Indiana and southwestern Ohio were also under a winter storm warning.
Chicago Reviews Hired Truck Program
Officials in Chicago said they are reviewing their use and management of private trucking companies after the Chicago Sun-Times raised questions about the program's performance, the Associated Press reported.Under the Hired Truck Program, Chicago hires privately owned firms to haul materials at work sites overseen by several city departments. About 165 city-approved companies participate in the program, which doles out nearly $40 million each year, according to the Sun-Times.
The newspaper said in its print and online editions that some of the companies often do little or no work while on the clock and that several of the firms who have benefited the most from the program are owned by people with political ties or links to organized crime.
At a news conference at City Hall, budget director William Abolt said the city's use of the program drives down the cost of construction projects, but admitted he has been working since last year to correct problems within it, AP said. Transport Topics
Arkansas Best's Profits Increase
Arkansas Best Corp. parent of less-than-truckload carrier ABF Freight System said it earned $14.7 million or 58 cents in the fourth quarter, compared with $14.5 million or 57 cents a year earlier.Overall revenue for the quarter was $387.1 million, an increase of 1.5%, the company said in a release. ABF's revenues were $348.4 million, a per-day increase of 1%, and its operating income was $22.8 million.
For the full year, the company reported a net income of $46.1 million or $1.81 per diluted common share, compared with $42.3 million or or $1.66 per share.
Arkansas Best is ranked No. 16 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Wabash to Increase Production As Demand Grows
Truck trailer maker Wabash National Corp. said Monday that planned to increase production and add workers during the first quarter."As forecasted, the trailer industry is beginning to see a pronounced increase in order activity," William Greubel, Wabash chief executive officer, said in a release. Wabash said it had received more than 8,000 net orders during December 2003.
"As a result, we have announced plans to increase our production rates during the first quarter of 2004," Greubel said. "To meet these increased production rates, the company expects to add approximately 300 associates to our workforce. The increased production rates will result in added capacity of approximately $200 million in revenue on an annualized basis." Transport Topics
Lundberg: Gasoline Prices Up 7 Cents
Retail gasoline prices rose nearly 7 cents per gallon over the past two weeks, according to the Lundberg survey of stations nationwide.The average price Friday for a gallon of self-serve gas nationwide, including all grades and taxes, was about $1.65 per gallon, up 6.72 cents from Jan. 9.
Analyst Trilby Lundberg said prices rose partly because of higher crude oil costs bolstered by strong world demand and increased winter home heating, the Associated Press reported.
Lundberg said the national weighted average price of gasoline, including taxes, at self-serve pumps Friday was about $1.62 for regular, $1.72 for mid-grade and $1.81 for premium. Transport Topics
FedEx, Postal Service in Delivery Venture
FedEx Corp. is offering large customers a cheaper delivery option that uses the U.S. Postal Service to carry packages the final mile to homes, Bloomberg reported late Friday.Under the venture, FedEx can deliver parcels to any of 38,000 post offices, which transport the packages one mile to homes. FedEx is offering the service to high-volume shippers as a national four-day delivery option at prices less than its typical rates, Bloomberg said.
The company, ranked No. 2 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies, said two large retailers and currently involved in a test program using the service and a decision on its future could come by May 31, according to Bloomberg.
This service is similar to an existing venture UPS Inc. has with the post office. Transport Topics
PGT Trucking Acquires Buffalo Wood
Flatbed hauler PGT Trucking, Pittsburgh, said Jan. 18 that it acquired building and materials transporter Buffalo Wood Trucking for an undisclosed sum.PGT, whose primary customers are steel shippers, said it bought Centerville, Miss.-based Buffalo as part of an effort to diversify into the building and materials industry.
Terms of the agreement were not disclosed.
PGT said it currently employs more than 240 people at its corporate headquarters, retains about 900 drivers and owns 32 terminals. The company said it expected to open several new facilities this year.
Buffalo Wood President W. Clifton Van Cleave said in a statement that moving under PGT would allow his company to strengthen its technology base and expand its service capabilities. Buffalo employs 33 people and numerous owner-operators, he said. Transport Topics
This story appeared in the Jan. 26 print edition of Transport Topics.
