News Briefs - June 26
The Latest Headlines:
- Price of Crude Down as OPEC Hints It Won't Cut Output
- Jobless Claims Decline 22,000 in Latest Week
- SMC3 to Raise Rates 6.1%
- G.I. Trucking Expands Truck Fleet
- Jobless Claims Decline 22,000 in Latest Week
Price of Crude Down as OPEC Hints It Won't Cut Output
The price of crude oil fell on Thursday after OPEC said disruptions to Iraqi exports and a recent rally in prices may mean it won't have to cut output at its July 31 meeting, Bloomberg reported.Crude is distilled down to motor fuels like diesel and gasoline, both of which are used to power the trucking industry.
Crude oil for July delivery was down 12 cents at $29.80 a barrel Thursday morning on the New York Mercantile Exchange, Bloomberg said. Oil was up 11% percent from a year ago.
Jobless Claims Decline 22,000 in Latest Week
Initial applications for unemployment benefits plunged 22,000 to 404,000 in the June 21 week, the lowest since March 22, from a revised 426,000, the Labor Department said Thursday.Continued positive reports on the employment market often bolster consumer confidence and can increase the demand for trucking services.
The four-week moving average number of jobless claims, regarded as a truer reflection of the market because it smoothes volatility, fell to 428,250 from 433,500.
Despite the decreases, claims remained above 400,000, a level associated with a stagnant labor market, the past 19 weeks.
Economists had forecast first-time claims would fall to 415,000 compared with the department's original estimate of 421,000 in the June 14 week, Reuters reported. Transport Topics
SMC3 to Raise Rates 6.1%
SMC3, a less-than-truckload freight rate bureau, said Wednedsay it would raise rates by 6.1% effective Aug. 1.During the past month, FedEx Freight, ABF Freight System and Old Dominion Freight Line Inc. all announced similiar rate increases.
The company said in a release it serves about 770 carrier and shipper members, and 5,000 customers throughout the United States. Transport Topics
G.I. Trucking Expands Truck Fleet
Less-than-truckload carrier G.I. Trucking Co. said Wednesday it had recently acquired 40 new tractors and 460 trailers, bringing the company fleet to 575 tractors and 2,900 trailers.The Brea, Calif.-based company said in a release it is investing about $8 million in new equipment.
G.I. Trucking is ranked No. 91 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.)
