P.M. Executive Briefing - Jan. 3
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Construction Spending Fell Slightly in November
Government figures show construction spending in the United States fell in November for the first time in four months, as a decline in highway work and home improvements offset gains from new housing, Bloomberg News reported Wednesday.This could mean slightly fewer loads of building materials for trucks to haul.
A 0.6% decrease in spending for November followed a 0.8% increase November, according to Commerce Department figures.
Spending also increased for apartments, condominiums and townhouses - as well as industrial projects and public schools, Bloomberg reported. Transport Topics
Steel Production Down From Last Year
Weekly raw steel production is down by nearly 30% from the comparable period last year, and a mine serving the steel industry is closing immediately -- not Feb. 22, as previously announced.Both of these could mean fewer loads for flatbed trucking companies to haul.
American Iron and Steel Institute figures show that raw steel production decreased by 5.2% in the week ended Dec. 30, to 1.59 million tons compared with the 1.68 million tons the previous week, the Wall Street Journal reported Wednesday.
That is 28.5% less than the 2.22 million tons produced during the comparable period a year earlier, the Journal reported. At that time, the industry was using 90.9% of its capacity, compared with 63.6% during that week, the Journal reported.
LTV (LTV) announced Wednesday that it would immediately cease production at the LTV Steel Mining Co. in Hoyt Lakes, Minn. The company blamed difficult conditions in the steel market and accelerated cost reduction efforts related to the company's recent Chapter 11 bankruptcy filing. Transport Topics
FedEx Opens New Truck Dispatch Center in Reno, Nev.
Delivery company FedEx Corp. (FDX) announced Wednesday that its FedEx Custom Critical subsidiary has opened a truck dispatch center in Reno, Nev.The ExpressCenter will dispatch trucks to pick up freight within a 50-mile radius of Reno, with pickup times ranging from less than 90 minutes to two hours. The company would not release the number of trucks dispatched through the center nor would it disclose the number of owner-operators involved.
Akron, Ohio-based FedEx Custom Critical provides same-day and other customized freight handling services. Transport Topics
U.S. Transportation Dept. Proposes New Head Restraints Standards
The U.S. Department of Transportation proposed a new safety standard Wednesday to improve head restraints on trucks, buses and passenger cars.The head restraint is the part of the seat located directly behind a driver's or passenger's head. It minimizes whiplash during collisions.
The proposal would require greater heights for the head restraints as well as a shorter distance between a person's head and the restraint, the department said.
The National Highway Safety Administration, which made the proposal, said the improvements would prevent 14,000 neck injuries per year. Transport Topics
PNV Cuts 227 Jobs
PNV Inc. (PNVN), which provides Internet and cable services for truck drivers, announced Wednesday that it has cut a total of 227 jobs since October.The Coral Gables, Fla.-based company temporarily suspended operations on Dec. 30 to find buyers for its assets.
The company's Web portal, PNV.com, still operates. Transport Topics
Ford, GM Sales Down in December
Winter storms and waning consumer confidence kept vehicle buyers away in December, cutting into auto sales by Ford Motor Co. (F) and General Motors Corp. (GM), Bloomberg News reported Wednesday.A downturn in demand could mean fewer hauls of parts and finished autos for trucking companies - especially those serving the Midwest - as the automotive industry cuts back on production.
Sales of cars and light trucks built by GM in North America fell 18% to 330,176, while Ford's fell 15% to 259,411, Bloomberg reported.
When seasonally adjusted, the annual sales rate for 2000 is expected to be around 17.4 million units last month, topping 1999's record of 16.9 million, Reuters reported. Sales in 2001 are predicted to be around 16 million units.
December brought an 8.6% fall industrywide in car and truck sales, the news service said. Foreign-based automakers fared better, Bloomberg said
Ford is planning for a 15% decline in first-quarter U.S. sales. Transport Topics
December Retail Sales Edged Up
Discounts and promotions brought shoppers into stores the last week of December, helping push sales up slightly for that month, according to the Redbook Retail Sales report.This could mean stores will have less unsold merchandise for trucks to haul away, and it could also result in more freight being sent to the stores.
Redbook's Same-Store Index expects the sales report for December 2000 to show a rise of 2.5% to 3%. The index posted a 6.1% jump in December 1999, Reuters reported.
The final December sales figures for most retailers are not reported until Jan. 4. The Redbook index tracks sales at 60 general merchandise retailers. Transport Topics
Headlines From Today's A.M. Briefing
- Expected OPEC Production Cuts Raises Crude Oil Prices
- Intrenet Closure to Eliminate 1,700 Jobs
- Report: DaimlerChrysler, Hyundai to Jointly Build Trucks
- Diesel Average Up 0.7 Cents
- Office Depot Closing Stores, Updating Warehouses
- Walgreen Plans to Open 500 More Stores
- Renault Car and Light Truck Sales Rise 0.4% in 2000
- Hyundai Reports Record Sales in 2000
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