P.M. Executive Briefing - Feb. 11
This Afternoon's Headlines:
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Teamsters Join Fuel Price Protest
Independent truckers blocked the Newark-Elizabeth container terminal complex in New Jersey for a second day in protest of higher fuel prices, and Teamsters officials, who want to unionize the country's harbor truckers, decided to join in.Union organizers ran out of the 1,000 pledge cards they had with them; truckers signed the cards to say they want to be Teamsters and back the union's campaign.
New Jersey Motor Truck Association President Sam Cunninghame is planning an offer intended to end the protest, said Port Authority of New York and New Jersey spokesman Dan Maynard. If the drivers call it off, Cunninghame would give them a chance to talk to terminal operators and, possibly, steamship lines. Journal of Commerce Online (02/11/00); Armbruster, William
Protesting Truckers Get Help From Their Friends
Some 150 Orlando trucks Thursday formed a convoy to Cocoa, Fla., where independent truckers for CSR Rinker have been parked along a road and entrance ramp near the Rinker plant protesting their contracts all week. The contracts force them to give Rinker a broker's fee for shipments they handle and to purchase insurance and fuel from Rinker, the Rinker drivers say.Like the Rinker drivers, the Orlando truckers carry sand, gravel, and other building materials; their miles-long convoy was intended to show support for the Rinker drivers' cause.
Anthony Suarez, an attorney and member of the state House, was hired by the Rinker drivers as their negotiator, but on Wednesday he told the driversnegotiations would not take place. Rinker's owners say they "will start a new company from the ground up" and the protest has caused Rinker a great deal of damage, Suarez said.
Suarez this week recommended that the Rinker drivers establish their own corporation that would allow them to do their own brokerage and get lower insurance prices.
A similar trucking protest happened in Miami this week, some drivers said. Orlando Sentinel (02/11/00) P. B1; Bumpus-Hooper, Lynne
Secrecy Veil Lifted on License-Scandal Documents
A court order from Cook County (Ill.) Circuit Judge Julia Nowicki will release documents about Illinois CDL-selling to the public about two weeks from now. But state attorneys will be able to take the names of state employees out of the documents, which run into thousands of pages.With the documents released, the public could learn more about the "widespread corruption" federal prosecutors say took place in the secretary of state's office when Gov. George Ryan was secretary of state. Until now, the documents have been under a protective order issued by Nowicki in a civil suit regarding six children who died in a 1994 crash involving a truck driver who, investigators say, got his CDL illegally. Minneapolis Star Tribune Online (02/11/00); Robinson, Mike
Ontario Truckers Say Province Taxes Safety
At the Standing Committee on Finance and Economic Affairs pre-budget hearings Thursday, the Ontario Trucking Association showed a study saying Ontario puts a bigger tax burden on the trucking industry than any province or state bordering Ontario.Ontario truckers have to pay about $200 million annually in sales taxes that exemptions or tax credits allow truckers outside Ontario to avoid, OTA says. It has the biggest sales taxes on equipment and parts and labor and, along with Quebec, the largest insurance premium taxes.
OTA President David Bradley said the taxes discourage carriers to pay more for insurance and equipment upgrades or maintenance, thus amounting to "taxes on safety." TruckingInfo.com (02/11/00)
Celadon Names its COO Goldberg as President
Celadon Group named executive vice president and COO Robert Goldberg to the position of president; he remains COO. Former President Stephen Russell continues as chairman and CEO. Reuters (02/10/00)S&P Affirms USFreightways, Outlook Stable
Standard & Poor's affirmed its A- corporate credit rating and A- senior unsecured rating on USFreightways, giving it a stable outlook. For this year, strong cash flow and demand will continue to be an advantage for USF, S&P said. S&P believes USF management will keep leverage and coverage ratios matching its rating, although partially debt-financed acquisitions could moderately boost leverage.Many USF trucking units are market leaders with profitability and operating margins above average. Acquisitions could help achieve better lane density at Red Star and Dugan, the USF companies with less strong results that management wants to improve. Other acquisitions could help USF in its plan to offer comprehensive transportation services.
But USF will be careful about acquisitions, S&P predicts. S&P predicted that this year funds from operations to total debt will continue to be above 70%, EBITDA coverage of interest will remain above 15 times (x), and pretax interest coverage will remain above 10x. Reuters (02/10/00)
Unsafe Rigs Waylaid on Two Highways
The Pennsylvania Transportation Department and Pennsylvania Utility Commission inspected 42 trucks in southwest Philadelphia in a Wednesday crackdown and took 20 of them off the road for problems including overweight loads and bad brakes. Police issued 40 tickets and 23 warnings to the truckers, who were directed onto side streets from the Schuylkill Expressway and Interstate 95.Philadelphia police intend to have such crackdowns twice monthly, including another planned for later in February. Philadelphia Inquirer (02/10/00) P. B3; Moran, Robert
Research Alert - C.H. Robinson Raised
C.H. Robinson Worldwide has been given a strong buy rating by Credit Suisse First Boston, up from a buy rating. Credit Suisse First Boston gave C.H. Robinson a price target in the low $60 per share range, increased its estimate for the full year six cents to $1.52, and believes it could achieve revenue growth in the upper teens. Trucking-industry consolidation will probably speed up growth in revenue and earnings at C.H. Robinson, Credit Suisse First Boston said. Reuters (02/10/00)© copyright 2000 INFORMATION, INC. Terms of Service
