P.M. Executive Briefing - Mar. 30
This Afternoon's Headlines:
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Peapod, In Search of Takeover Offers, Is Visited by UPS and Grocery Rivals
Unnamed sources say United Parcel Service of America, as well as Dutch grocery firm Royal Ahold and HomeGrocer.com, have all responded to a search for takeover offers from Peapod, the top U.S. online grocery store, but none has put in a bid.After a planned $120 million investment in Peapod was abandoned by investors this month when CEO William Malloy resigned due to health concerns, the company engaged Wasserstein Perella, an investment banking outfit, to look for alternatives.
Ford Could Buy Volvo
Ford Motor Chairman and CEO Jac Nasser has been reported as saying Ford may purchase Volvo if the truckmaker receives an offer from a different company that could put the Volvo brand name in jeopardy; Volvo's car division was bought by Ford in 1999.Nasser, whose statement reportedly came during a tour of a Swedish Volvo factory, also said Ford would rather Volvo stay independent. Stark's News Service (03/30/00)
Teamsters Prepared to Strike This Weekend
Teamsters continued to picket outside a warehouse and hotels in Springfield, Mo., Wednesday, as Associated Wholesale Grocers prepares to outsource some operations in Springfield and Kansas City starting Sunday if the union fails to win a new contract.The union members believe Elite Logistics, which would be assuming AWG warehouse operations in Springfield, is training replacement employees at the warehouse and providing lodging at the two hotels.
While union member Buck Keltner said the pickets are intended to publicize alleged bad-faith negotiation on AWG's part, saying the presence of replacements shows the company expects a strike, Martin Street of Elite Logistics' parent firm Tibbett & Britten said the hiring is a contingency action.
Locals in both affected areas intend to strike should the union not win a new contract. Associated Press (03/30/00)
Research Alert - ABN AMRO Starts Celadon With Buy
ABN AMRO, citing Celadon Group's new TruckersCo-op.com venture and describing it as "the eBay of trucking," has begun covering the trucking company, rating it "buy" and projecting earnings of 35 cents this year and 90 cents next year. In a press release, analyst Thom Albrecht said the online venture could turn a profit within a year. Reuters (03/30/00)E-ZPass to Thrive on Hikes in Tolls
A New Jersey Turnpike consultant's report expects that more than half of truckers and four-wheelers will use the E-ZPass system during the weekday morning rush when toll hikes go into effect in August, reducing delays caused by long lines at tollbooths.Because the toll hikes will be lower for E-ZPass than for cash tolls, the consulting firm Wilbur Smith Associates expects 55% of truckers and 65% of motorists to use the electronic system for the morning rush. When a second set of hikes comes at the beginning of 2003, those numbers are expected to go up to 57% and 68%, respectively.
The report predicts that the system will be used somewhat less often during the evening rush, while the biggest increase in use of the system will come on weekdays in off-peak hours, since E-ZPass rates will differ from cash rates by the widest margin during those times.
When the turnpike begins offering lower tolls for off-peak hours, the peak-hour lengths – currently three hours each, starting at 6 a.m. and 4 p.m. – may be reduced. Bergen Record (03/29/00) P. A1; Gilbert, Pat R.
Handling Breakdowns
When it comes to handling breakdowns, author Tim Barton suggests that truck drivers remember to keep their heads clear and rein in frustration.While many larger and mid-size trucking companies have 24-hour dispatch and satellite communication, and many drivers now carry cell phones, some non-technological preparation can simplify the problems of a breakdown.
Recruiting director Curt Shiver of Ashford, Ala.-based AMX said drivers should have basic supplies with them, such as "electrical tape, an adjustable wrench, a flat-head and Phillips-head screwdriver, and a hammer." Also, breakdowns can best be avoided by spotting minor problems in a thorough pretrip inspection, he said.
A list of authorized vendors to call for repairs can be helpful, but a driver should always have the name of a contact person, particularly on the weekends.
Under some conditions, a driver may be able to coax his vehicle to make it to the closest truckstop, but that decision may cause more mechanical damage than the original malfunction, and safety should be the main consideration.
Two things a driver must do get the truck out of the way of traffic and warn others of the truck's presence with safety devices. Drivers can also be prepared for future problems by monitoring the repair process. Truckers News Online Magazine (03/00); Barton, Tim
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