News Briefs - July 1
The Latest Headlines:
- Construction Spending Rises 0.3% in May
- Most Port Truckers in New Orleans Return to Work
- Jobless Claims Rise to 351,000 in Latest Week
- XRG to Purchase Truckload Carrier in Northeast
- Canadian Pacific Hires Norfolk Southern to Deliver Some Freight
- Paccar Completes Repurchase of 2 Million Shares
- C.H. Robinson Expands Assets, Offices in China
- Most Port Truckers in New Orleans Return to Work
Most Port Truckers in New Orleans Return to Work
Most of the independent truckers who boycotted the Port of New Orleans on Monday in a protest over low pay and high fuel costs returned to work on Thursday, the Associated Press reported.Although about 15 drivers planned to stay off the job until Sunday, the boycott was having little effect on container movement in New Orleans, AP said.
Similar protests were being held this week at other ports in New Jersey, South Carolina and several other states. Transport Topics
Construction Spending Rises 0.3% in May
Construction spending rose 0.3% in May to a record annual pace of $988.5 billion, the fourth straight increase, the Commerce Department reported Thursday.Residential construction, accounting for more than half the total, rose 0.8% to a record $532.3 billion.
Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.
Commerce said government spending on transportation projects rose 0.9% to $19.8 billion, and was up 4.5% from a year earlier. Spending on roads and highways rose 0.1% to $68.5 billion. Transport Topics
Jobless Claims Rise to 351,000 in Latest Week
The number of U.S. workers filing new claims for jobless benefits rose by 1,000 last week to 351,000, the Labor Department said Thursday.Claims have averaged 347,192 a week this year, compared with 402,000 in 2003.
The four-week moving average, considered by many economists to be a more accurate barometer of the job market because it smoothes weekly volatility, rose for the second consecutive week to 347,000 from 344,500.
The number of people continuing to collect state jobless benefits rose by 13,000 to 2.966 million in the week that ended June 19 from a revised 2.953 million a week earlier. The statistics are reported with a one-week lag to initial claims. Transport Topics
XRG to Purchase Truckload Carrier in Northeast
Truckload holding company XRG Inc., Tampa, Fla., said June 30 it had agreed to buy a Northeast truckload company that generated about $30 million in revenue last year.XRG Chief Executive Officer Kevin Brennan told Transport Topics July 1 he could not disclose the name of the company, but said XRG planned to announce more details "within the next few days."
He said that acquisition, and another of similar size to be announced soon, would bring XRG’s revenues close to $100 million. In addition, "we’re looking to grow [more] in the next six to nine months," he said.
XRG said it was "established in November 2000 to consolidate established and profitable truckload carriers throughout the United States," and had earlier acquired or entered into agreements to buy five other truckload carriers with combined revenues of about $40 million.
Brennan said in a statement that the Northeast company had more than "20 years history of successful operations" and would provide a "larger shipper base" and help the firm’s back-haul capability. Michael G. Malloy
Canadian Pacific Hires Norfolk Southern to Deliver Some Freight
Freight railroad Canadian Pacific Railway Ltd. said it would hire Norfolk Southern Corp. to carry some freight over the Canadian company's tracks in New York state, Bloomberg reported.CP said it did not do enough business on the route to justify its cost, Bloomberg said. The deal calls for Norfolk Southern to take over shipments between Binghamton and Buffalo.
n addition, Norfolk Southern would begin using a shorter route to Montreal and eastern Canada over Canadian Pacific tracks north of Albany, N.Y., and shift Canadian Pacific cargo traveling between Chicago and Detroit to Norfolk Southern's route from CSX Corp.'s.
he deal requires approval from the U.S. Surface Transportation Board, Bloomberg said. Transport Topics
Paccar Completes Repurchase of 2 Million Shares
Truck manufacturer Paccar said late Wednesday it had completed the repurchase of 2 million shares of its common shares at an average price of $53.86 for a total investment of approximately $108 million."Paccar's positive action supports its belief that its shares are undervalued and represent an outstanding long-term investment opportunity," said Mark Pigott, chairman and chief executive officer. Transport Topics
C.H. Robinson Expands Assets, Offices in China
Logistics provider C.H. Robinson Worldwide said June 17 it had entered into a binding agreement to acquire selected assets of China-based freight-forwarder Dalian De-cheng Shipping Agency Co. on June 30, and would open seven offices in that country.Stock analyst John Larkin of Legg Mason Wood Walker said in a June 18 report to clients that the acquisition would not significantly contribute to C.H. Robinson’s revenues — adding just 0.3% in the first year — but said the acquisition would expand the company’s Asian presence.
Robinson said the new offices would add $12 million in revenue in the next 12 months. The company currently has one office in Hong Kong, Larkin said.
C.H. Robinson said it would hire about 90 employees from DDSA, including its management team, and that its Asia operations would be headquartered in the Manchurian city of Dalian. Mindy Long
