News Briefs - May 7
The Latest Headlines:
- Union Pacific Sued Over Using Managers to Run Trains
- DOT's Transportation Index Rises in February
- UPS Raises Buyback Plan to $1 Billion
- NHTSA: International, GM Recall Some Trucks
- Rail Intermodal Loadings Rise 6.8% in Latest Week
- DOT's Transportation Index Rises in February
Union Pacific Sued Over Using Managers to Run Trains
Union Pacific Corp.'s largest union sued the the freight railroad to block the company from responding to a crew shortage by using managers to run trains, Bloomberg reported.The United Transportation Union's lawsuit says the company violated a 1985 agreement to promote UTU members who are
onductors when engineer positions become available, Bloomberg said.
Union Pacific told Bloomberg it does not believe it is violating the contract, and is training 400 conductors to become engineers in a six-month program. Transport Topics
DOT's Transportation Index Rises in February
The Department of Transportation said May 6 its transportation services index rose 1.4% in February to 120.4, the second-highest level in its 14-year history.The February level was only 0.1% lower than the all-time high of 120.5 in December 2003, and 5.1% higher than a year earlier.
In its release, DOT said the index includes data dating back to 1990, with changes are measured against the base year of 1996. TSI is still under development and is considered experimental, DOT said.
DOT orginally reported that the index rose in January, but said in its latest release it index had dropped in January for the first time in four months.
The freight portion of the index increased 1.3% after declining the month before. Transport Topics
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UPS Raises Buyback Plan to $1 Billion
UPS Inc. said late Thursday it raised its plan for buying back shares to $1 billion, and said it would use the stock for awards to managers.
he company had about $500 million left under a $1 billion stock-repurchase program approved in August 2003, spokesman Norman Black said told Bloomberg. The plan announced Thursday in a release included both Class A and Class B shares.
At the company's current stock price, $1 billion would buy about 14 million shares.
UPS is ranked No. 1 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
NHTSA: International, GM Recall Some Trucks
The National Highway Traffic Safety Administration said truck makers International Truck and Engines Corp. and General Motors Corp. have issued recalls affecting up to 4,058 heavy- and medium-duty trucks.NHTSA said International, the operating arm of Navistar International Corp., recalled up to 2,021 of its 7300, 7400 and 7500 model severe service heavy-duty trucks because the universal joint could come in contact with the engine oil filter and cause complete loss of oil.
In addition, GM recalled up to 2,037 of its 2004 Chevrolet Kodiak and GMC Topkick medium-duty trucks because the push rod and pedal could separate, resulting in a loss of brakes. Transport Topics
Rail Intermodal Loadings Rise 6.8% in Latest Week
The number of intermodal loadings on the nation’s railroads totaled 210,892 trailers or containers in the week ended May 1, up 6.8% from the same week a year earlier, the Association of American Railroads said late Thursday.Railroading, like commercial trucking, is considered an important economic indicator. Intermodal traffic, which tends to be merchandise rather than bulk commodities, is more directly competitive with trucking and more reflective of the state of the economy.
AAR said trailer traffic gained 10.8%, while container volume was up 5.5% in the latest week.
For the first 17 weeks of the year, intermodal volume totaled 3.4 million trailers or containers, up 7.9% from last year, AAR said. Transport Topics
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