P.M. Executive Briefing - Dec. 1
This Afternoon's Headlines:
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Yellow Freight Plans Growth
Pending approval from the federal Bankruptcy Court, Yellow Freight System will take over the former Preston Trucking terminal in Richfield, Ohio, giving the company two terminals in the village and increasing the company's Richfield payroll by 200 over a period of roughly a year. Yellow Freight is already the top employer in Richfield, with 850 employees based at the current 142-door facility.However, the plans could lead to a dispute over jurisdiction between two Teamsters locals, the Cleveland-based Local 407 and the Akron-based Local 24. Local 407 represents the current facility north of the Ohio Turnpike, which is the historical dividing line between the locals' jurisdictions.
However, Local 24 President Travis Bornstein said he did not know of any such deal and would dispute any effort by Local 407 to venture past the turnpike to the former Preston site, where Local 24 had jurisdiction before Preston shut down in July. Akron Beacon Journal Online (12/01/99) ; Russell, John
License Scandal Ripples in New York
Illinois officials have sent the New York Department of Motor Vehicles a list of truckers who might have received CDLs through bribery in Illinois and then used them to get New York CDLs. New York DMV spokesman Joe Picchi described the list as "lengthy" and said, "We're awaiting additional information from Illinois authorities before proceeding."Due to suspicion that they got their licenses improperly, roughly 500 Illinois truck drivers have been forced to be retested lest they be stripped of their CDLs.
Thus far in the federal probe into Illinois' CDL bribery scandal, 23 people have been charged and 13 have been convicted. Chicago Tribune (12/01/99) P. 1, Metro Chicago Section; Cohen, Laurie; Zajac, Andrew
Shippers' Vulnerability Increases With Deregulation, Attorney Says
In a speech to a Canadian Logistics Management Association symposium, Transportation Consumer Protection Council executive director William Augello said contracts with carriers in deregulated transportation industries contain pitfalls for shippers.Shippers who have laid off transportation employees or hired third-party companies for their transportation needs often fail to notice the potential problems. With the scuttling of the Interstate Commerce Commission, trucking companies no longer have to tell shippers about tariff terms if the shipper does not ask for them. Carriers' tariffs can include liability limitations, which the ICC forbade unless the shipper agreed in writing, he said.
Another problem that sometimes besets shippers is rate discounts that are taken away if the shippers pay late. While the carriers usually do not levy the penalty for late payment, shippers could be back-billed following a carrier's bankruptcy, he said.
According to Supply Chain Logistics Management managing director Don Borsk, it is a lot harder to get a handle on all the fine print since deregulation. "You have to employ highly specialized people, consultants, lawyers, to hunt this stuff down." Augello said the important thing is to "negotiate." Journal of Commerce (12/01/99) P. 19; Tower, Courtney
U.S. Trucking Names Richard Bradley Chief Financial Officer
U.S. Trucking has tapped 33-year-old certified public accountant Richard W. Bradley to be the transportation firm's new chief financial officer. Bradley served as Overnite Transportation's manager of accounting between 1988 and 1992, after which he formed the Chestnut & Bradley consultancy and later held offices at two other companies. Business Wire (12/01/99)Ryder Announces Realignment, Refocusing Organization on Customer Solutions
Ryder System said it will consolidate the Ryder Transportation Services and Ryder Integrated Logistics business units and establish Ryder Capital Services to meet the financial requirements of its operating companies. Also to be established is an Asset Management Group.The company has tapped Ryder Integrated Logistics President Ray Greer for the position of executive vice president/general manager, Global Markets and Solutions. Eventually, the new Ryder Capital Services will also serve clients, vendors, and suppliers.
"Ryder's more effective organizational structure and related process changes will better meet and exceed client expectations and improve the company's operating performance," said Chairman and CEO M. Anthony Burns. Fewer than 200 jobs will be cut due to redundancy during the coming half year. [The Wall Street Journal reported that the truck-leasing operation's President Jim Griffin will be one of the 10 corporate officers to depart.] PR Newswire (11/30/99)
Truckers Transport Christmas to Sick Kids
Ben and Patty Parker, a Florida couple working for Kokomo, Ind.-based Collins Moving Systems, have tricked out their green truck with lights and candy canes for Christmas-season visits with sick children in hospitals.They took the sparkling rig to an Indianapolis Ronald McDonald House on Monday, Ben wearing a Santa Claus hat and Patty bearing a grab bag of candy and gifts. On their way to Los Angeles for a delivery, they plan three more Ronald McDonald House stops.
People who want to help the couple out can donate items through Collins Moving Systems in Kokomo or telephone (800) 428-0601. Indianapolis Star (11/30/99) P. B1; Brown, J.M.
C.H. Robinson Worldwide Increases Quarterly Cash Dividend
The board of directors at C.H. Robinson Worldwide has upped the quarterly cash dividend to 8 cents a share. The dividend is payable Jan. 3 to those holding C.H. Robinson stock as of Dec. 10. Business Wire (11/30/99)© copyright 1999 INFORMATION, INC. Terms of Service
