P.M. Executive Briefing - June 5
This Afternoon's Headlines:
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Roadway Express Takes Second Swing at $28-Million Project in California
The fate of a $28-million shipping yard project by Roadway Express Inc. in Bloomington, Calif. may be decided Tuesday during an appeal hearing before the San Bernardino County Board of Supervisors, the Riverside (Calif.) Press Enterprise reported Monday.Roadway Express failed to get approval by the county Planning Commission last month for a conditional-use permit needed to build and operate a facility just off Interstate 10, about 55 miles east of Los Angeles. On 52 acres Roadway Express wants to build warehouses, loading docks, offices, a maintenance facility and a fueling station. It would employ more than 700 people and Roadway Express would then consolidate operations from three other sites in the county.
Daylight Transport to Begin Expedited Regional LTL Service Between U.S. Midwest, Northeast
Long Beach, Calif.-based Daylight Transport, a leading expedited truck-freight carrier, said it will open new lanes for the first time within the largest U.S. regional freight market the Midwest and Northeast.Daylight will offer regional less-than-truckload services between several Midwest states (Illinois, Indiana, Minnesota and Wisconsin) and key Northeast states (New York, New Jersey and Connecticut) as of June 8.
Company president Doug Waggoner said Daylight expects to gain market share in the region by providing transit times of only two calendar days between most metro markets. Transport Topics Staff
Could a Navistar Buyout Be in the Works?
After Volkswagen Chairman Ferdinand Piech told the company's annual meeting that a North American acquisition could be in the future, analysts quickly began saying Navistar International could be a possible partner for the German company.Over the last year, news reports have repeatedly predicted a European acquisition of Navistar, and in this case, as in the past, a Navistar spokesman cited company policy against commenting "on rumors and speculation."
Among the European companies that have been floated as possible Navistar buyers over the year have been Volvo, Scania, and Fiat, and none of those have bought Navistar either. Thus, the report of a possible Volkswagen takeover of Navistar might be another case of misleading signals sent out as a foreign company's attempt to stay apace with speedy auto-industry consolidation. Dayton Business News Online (06/05/00); Baker, Don
Ingram Micro to Create Logistics Division
Ingram Micro today will announce plans to create a new division called IM-Logistics that will provide delivery services for online retailers, in a bid to position itself as the leading provider of Internet fulfillment services.Already the largest distributor of computer products in the world, Ingram Micro will leverage its existing warehouses and distribution expertise to deliver a wide range of products. Initially, IM-Logistics will distribute TVs, VCRs, and other consumer electronic devices for online retailer Buy.com.
Critics say old-line distributors such as Ingram Micro are unfit to participate in online retail, since the Internet should ideally link buyers and sellers directly, eliminating unnecessary middlemen. However, many online retailers have demonstrated their incompetence in the area of fulfillment.
Toysrus.com, for example, failed to deliver Christmas gifts on time last holiday season and was forced to give away millions of dollars worth of gift certificates to angry consumers.
Meanwhile, Ingram Micro says its computer-product distribution business makes errors less than twice in every 1,000 orders and is able to move an order onto the truck about four and half hours after submittal. Los Angeles Times (06/05/00) P. C1; Fields, Robin
Maryland Police Tackling Theft of Heavy Equipment
Paul Morgan, a Charles County, Md., sheriff, travels the country teaching police officers and vehicle inspectors how to spot stolen heavy construction equipment, inspect drivers' papers, and locate the manufacturers' identification numbers on the equipment.He recently held a class for the Connecticut Police Academy; that state's police vehicle-theft task force recently caught a ring whose thefts of construction equipment could total $1 million in value. Morgan says officers should carry brake cleaner and rags to wipe away grease or spray paint used to cover up ID numbers.
According to Morgan, only about 16% of stolen equipment is recovered compared to 60% of all stolen cars because police are unaware of what they should keep an eye out for. Associated Press (06/05/00)
Suit Prompts Houston Drivers to Call Off Plan to Disrupt Trucking Firms
Houston-area truck drivers canceled a planned union-related action last week after the 16 trucking companies they work for sued the Teamsters, three Teamsters representatives, and an International Longshoreman's Association.The drivers, many of whom are seeking higher pay to make up for fuel costs and recognition as employees rather than outside contractors, were to attend an organizing meeting and convoy Thursday; according to the Teamsters, the convoy had drawn the interest of 1,200 drivers.
The companies say the lawsuits, alleging the defendants violated the Sherman Act and the Racketeer Influenced and Corrupt Organizations Act, were prompted by concern about losing business, said Gary Conner of Empire Truck Lines.
In addition, the president of one of the companies, Terrier Transportation, said someone has been threatening his company's drivers in an effort to make them unionize although he was not certain whether it was the Teamsters. Houston Chronicle (06/02/00) P. 4, Business Section; Moreno, Jenalia
Food's Hot and Tainted, Toronto Cops Say
Toronto Police are warning that thieves have been selling perishable goods, stolen from trailers, at cut-rate prices to stores and restaurants. The food, which is often thawed when the thieves turn off the refrigeration units and then frozen again by the people who buy from the thieves, could lead to food poisoning, police say.There have been 74 trailer thefts in the Toronto area this year the figure for last year was about 100 and 20 of the trailers contained perishable foods. Toronto Sun (06/02/00) P. 1; Godfrey, Tom
NationStreet Taking on Heavyweights in Home Delivery Market
NationStreet, founded five years ago as Residential Delivery Services, offers home delivery of big-screen televisions and other items that are too large for package carriers' size and weight limits. The company will also provide unpacking, assembly, and installation, and haul away the excess packing materials.The Westborough, Mass.-based company accomplishes this by managing a network of 1,400 trucking companies, based on their quality of service, instead of operating its own fleet. With $10 million from investors including the Internet Capital Group and UPS' Strategic Enterprise Fund, NationSteet has begun winning the business of online and catalog merchants as well as traditional retail stores.
Concentrating on home delivery, rather than hauling large shipments of goods between loading docks, enables NationStreet to compete in an industry with such powerhouses as Bekins, North American Van Lines, and CNF. Fortune (06/12/00) P. 322; Stein, Nicholas
Compiled by Transport Topics staff and INFORMATION, INC. © 2000
