P.M. Executive Briefing - Nov. 9
This Afternoon's Headlines:
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NLRB Files Complaint Against Carrier
The National Labor Relations Board has filed a complaint alleging that SAIA Motor Freight Line threatened to shut down its Grand Prairie, Texas, terminal if employees there joined the Teamsters. Other forms of intimidation are also alleged in the complaint. SAIA says the unfair labor practices charges are untrue and wants an administrative law hearing. eTrucker.net (11/09/99)World Watch: Debt Fears Hit Nissan's Truck Unit
With still no deal between Nissan Motor and creditors on a Nissan Diesel Motor bailout, investors have begun to worry that there will be no deal. Nissan Diesel's stock price took a 19% fall to 95 yen, or 89 cents. Nissan Diesel is a truck manufacturer and sells pickups and diesel engines to Nissan. Wall Street Journal (11/09/99) P. A19; Oyama, David I.
Interpool, Inc. Reports 3rd Quarter Net Income Per Diluted Share of $0.22 as Compared With $0.35 for Prior Year
The intermodal container and chassis lessor Interpool said it saw $6.1 million in net income for the third quarter, down from $10.1 million in the year-earlier quarter, with net income per diluted share falling to 22 cents from 35 cents, and revenues up to $56.9 million from $46.1 million.The company saw $157.7 million in revenues during the first nine months, up from $133.5 million in the comparable 1998 period, with net income down to $21.1 million from $27.5 million and net income per diluted share down to 74 cents from 96 cents.
A growth in the size of the company's fleet led to a 20% year-over-year growth in third-quarter operating lease revenues and a 7% year-over-year growth in pretax profits, as well as increases in revenue and profit from the second-quarter figures. Business Wire (11/09/99)
Mercedes Brazil to Invest $500 Mln In Trucks, Buses
During the coming three years, Mercedes-Benz Brazil will be putting $500 million into Brazilian truck, bus, and van production. The company has about $500 million in annual exports in addition to Brazilian sales. Reuters (11/08/99)Dutch Paccar Unit Raises Truck Production
By the 13th week of next year, DAF Trucks intends to have increased its daily truck output to 110 units from its present level of 96. The output will go up to 100 on January 1 and 105 five weeks later. DAF Trucks is a Paccar unit in the Netherlands. Reuters (11/08/99)Just-in-Time Manufacturing Is Working Overtime
Production demand among manufacturers is increasing and companies are having difficulty living up to the challenge. Although they must pay for employee overtime, overnight shipping, and the downtime that is caused when a production line is non-functional, companies cannot raise prices because competition is fierce and customers will go elsewhere.Another problem some companies are facing is working employees too hard. J.B. Hunt Transport Services was having difficulty retaining drivers. The company decided to increase driver pay by 33% and guarantee that drivers could return home every 14 days; Hunt's driver turnover has decreased by 50% and its accident rate by 41% in the past two years.
In addition to outsourcing and improving employee standards, manufacturers can survive production influxes by upgrading information systems, especially using the Internet to receive customer orders. Ironically, by the time manufacturers have their production up to speed, it is likely that the economy will have slowed down. Business Week (11/08/99) 3654; P. 36; Galuszka, Peter; Forest-Anderson, Stephanie
Shaw Begins Fleet Replacement
The Arkansas-based long-haul TL carrier Willis Shaw Express handles frozen and perishable products with facilities in Florida, Idaho, Alabama, Georgia, Nebraska, Virginia, and Texas. The company, part of the Comcar Industries, has 734 tractors and its independent contractors number 150.In order to provide drivers with comfort, power, and reliability, Shaw is purchasing the new CX613 Vision highway tractors from Mack. The company hopes that its fleet will have an average age under two years, according to President James M. Chadbourne. Among the benefits of using new trucks are warranties and newer technology.
The chief consideration is the fact that drivers look for new tractors when they consider working for a company. Most drivers seek "a big bedroom on air suspension and enough power to get up a hill," says Willis Shaw safety analyst Lance Shaw, and the Mack tractors provide this. Drivers concerned with maintaining a consistent speed will find the Vision tractors excellent at getting up hills, he says.
While Willis Shaw has not yet tested the new tractors extensively for fuel economy, one senior trucker got 7.1 miles per gallon during a 5,000-mile trip in the new truck. The trucks also have Eaton Vorad Doppler radar collision avoidance systems. One sensor is on the front bumper, the other is located above the fuel tank on the curb side. The sensors pick up objects less than a three-second closing distance in front of the tractor as well as on the side. According to Shaw, the company did need "some system software changes" to alleviate collision alarms going off too often.
Willis Shaw will now get a chance to test Mack's claim that its service in the Western states is as good as that from other big chassis makers. Refrigerated Transporter (10/99) Vol. Vol. 37, No. 5; P. 20; Macklin, Gary
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