News Briefs - March 16
The Latest Headlines:
- Leavitt Affirms 2007 Emissions Rule
- Swift Says 1Q Earnings Will Be Lower Than Expected
- CAW to Begin Voting on CN's Contract Offer
- Velocity to Get $7.5 Million in Stock Sale
- Swift Says 1Q Earnings Will Be Lower Than Expected
Leavitt Affirms 2007 Emissions Rule
Environmental Protection Agency Administrator Michael Leavitt told the Association of Local Air Pollution Control Officials that his agency will implement its 2007 diesel emissions standards.In a March 5 letter to the group, Leavitt said he has directed his staff to work closely with fuel providers and engine and truck manufacturers on the introduction of prototype engines well in advance of 2007. He acknowledged that trucking companies have been concerned about how the lower emissions standards will affect them.
In February, a group of state environmental officials drafted a model clean-air rule for states to adopt, fearing that Congress might weaken emissions standards in response to pressure from trucking.
This story appeared in the March 15 print edition of Transport Topics.
Swift Says 1Q Earnings Will Be Lower Than Expected
Truckload carrier Swift Transportation Co. said late Monday that its earnings for the first quarter would be "significantly less" than 19 cents per share.The company said in a statement it believed 19 cents was the mean estimate of the 13 analysts that follow Swift. It also said it would fall significantly below its goal to reduce its operating ratio by 3% this year.
Swift is ranked No. 13 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
CAW to Begin Voting on CN's Contract Offer
The Canadian Auto Workers union said it would begin voting on the new contract offer from Canadian National Railway Co., and it would try to have a final result by Friday, Reuters reported.On Feb. 20, 5,000 workers in Canada walked off the job. If union members accept the offer, the strike would be lifted immediately, Reuters said.
In the first full week of the strike, CN's overall traffic plunged 14%, as many shippers were forced to turn to more expensive truck deliveries to avoid bottlenecks at rail yards where containers are loaded between truck and train, Reuters said.
The CAW said the tentative three-year deal includes annual wage increases of 3% and scraps CN's new disciplinary system, a sticking point that helped scupper an earlier contract offer. Transport Topics
Velocity to Get $7.5 Million in Stock Sale
Same-day package carrier Velocity Express Corp., Minneapolis, said it expected to receive $7.5 million from the private placement of preferred stock.A company spokesman said March 9 that the announcement had led to favorable reaction from investors.
Chairman Vincent Wasik said in a statement that the money would help fund new business initiatives. He said the company, which ranks No. 47 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies, was bidding on more than $70 million in new business.
Velocity said it planned to continue to invest in technology toward development of a proprietary package-tracking system that would provide customers the ability to view the status of any package through a Web-based reporting system. Transport Topics
