News Briefs - June 13
The Latest Headlines:
- June's Preliminary Consumer Sentiment Index Falls
- Bush Administration Urges Veto on Raising Gas Tax
- Price of Crude Oil Down After IEA Production Report
- Pacer Refinances Existing Long-Term Debt
- Intermodal Rail Traffic Rises Again
- Bush Administration Urges Veto on Raising Gas Tax
June's Preliminary Consumer Sentiment Index Falls
The University of Michigan's preliminary consumer sentiment index for June fell to 87.2 from 92.1 last month, Bloomberg reported Friday.Analysts told Bloomberg that rising unemployment caused a drop in consumer confidence. If consumers are feeling less confident, they are less likely to make big purchases, thus reducing the demand for trucking services.
The index had reached a nine-year low of 79.9 in February before rebounding. Economists expected a reading of 93.1 for the preliminary June index, Bloomberg said.
The expectations index, based on optimism about the next one to five years, dropped to 84.2 from 91.4 last month. The measure of sentiment on the economic outlook had risen in April and May.
Bush Administration Urges Veto on Raising Gas Tax
Transportation Secretary Norman Mineta said Thursday that the Bush administration recommends a veto of a motor fuel tax increase advocated by some House Republicans to help pay for more road and transit spending, Bloomberg reported.Some House Republicans have proposed a retroactive indexing to inflation for the 18.4-cent federal gasoline tax, which would raise the tax by 8.5 cents over six years, Bloomberg said.
The tax increase would help pay for $375 billion in U.S. road and transit spending over six years. The House proposal is 52% more than the $247 billion Bush wants to spend. Transport Topics
Price of Crude Oil Down After IEA Production Report
The price of oil declined in New York and London on Friday after the International Energy Agency said oil production rose in May, Bloomberg reported.Crude oil is distilled down to motor fuels like diesel and gasoline, both of which are used to power the trucking industry.
On the New York Mercantile Exchange, crude oil for July settlement fell 46 cents to $31.05 a barrel, Bloomberg said. Brent crude for July delivery fell 41 cents to $27.42 a barrel in London.
World oil production rose in May, averaging 78.7 million barrels a day, 289,000 barrels more than in April, as supplies increased from both OPEC and non-OPEC countries, IEA said. Transport Topics
Pacer Refinances Existing Long-Term Debt
Freight transportation and logistics provider Pacer International Inc. said Friday that it had completed the refinancing of its existing long-term debt.The Concord, Calif.-based company said in a release it entered into a new senior credit facility with a syndicate of financial institutions led by Deutsche Bank. The agreement provides for a seven-year delayed draw term loan maturing in 2010 in an original principal amount of $255 million.
Pacer is ranked No. 16 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
(Click here for the full press release.)
Intermodal Rail Traffic Rises Again
The Association of American Railroads said late Thursday that intermodal traffic on U.S. railroads was up 2.6% last week compared with the same week a year ago.Intermodal is the segment of the railroad industry that most directly competes with long-haul trucking.
Intermodal traffic totaled 194,096 trailers and containers for the week ended June 7.
Through the first 23 weeks of the year, intermodal volume is up 6.9% at 4,2 million trailers and containers, AAR said. Transport Topics
