P.M. Executive Briefing - Oct. 26
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Rail Intermodal Traffic Rises Again
Intermodal freight volume at major U.S. railroads increased again last week over 1999 levels, the Association of American Railroads (AAR) reported Thursday. Intermodal traffic includes trailers and containers that can be hauled by trucks or trains and involve both transport modes during their trips.Intermodal traffic last week totaled 193,479 trailers and containers, up 2.7% from the same week in 1999, AAR said. Separately, trailers continued to slump, down 12.3% to 59,778 units, while containers rose yet again, up 11.1% to 133,701 units, the report said.
Railroads reporting to AAR account for 98% of U.S. rail intermodal volume. Transport Topics
DaimlerChrysler Reports 10% Drop in 3Q Commercial Vehicle Sales
DaimlerChrysler (DCX) said Thursday its commercial vehicles division further strengthened its "worldwide leading position," in the third quarter of this year, despite a 10% drop in sales to 126,400 units.The operating profit for the quarter was 290 million euros (US$239.9 million), which the company called "marginally below" last year's level of 303 million euros ($250.7 million) and was "primarily due to a significant drop in U.S. sales."
For the division as a whole, the division expects unit sales to be slightly below last year's level, but with revenue about the same.
DaimlerChrysler owns a number of truck brands including Freightliner, Sterling and Western Star. Transport Topics
Alcoa to Lay Off Pennsylvania Workers
Two days after announcing job cuts at its Hernando, Miss., plant, aluminum giant Alcoa (AA) said Thursday it will lay off up to 90 employees at its Cressona, Pa., plant, Bloomberg reported.The cuts, scheduled to begin in November, are due to slumping truck sales, as the Cressona plant makes parts for trucks and tractor-trailers, the story said. That plant employs 1,162 workers, Bloomberg noted.
Alcoa had said earlier this month that fourth-quarter results would be lower, mainly because of lagging sales to the transportation and construction industries. Transport Topics
Employment Cost Index Edges Up 0.9% for 3rd Quarter
The third quarter brought the smallest gain in employment costs in a year, Bloomberg reported Thursday.The 0.9% increase in the employment cost index - a key indicator of inflation - followed a 1% gain in the second quarter, the Labor Department said. Analysts had predicted a 1% rise, Bloomberg noted.
Productivity gains from July through September are likely to outstrip the rise in employment costs, analysts said. "Unit labor costs are falling," said Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd. in Valhalla, New York, according to Bloomberg. Third-quarter productivity numbers are due from the Labor Department next week.
Employment costs and productivity figures are closely watched by the Federal Reserve Board, which uses them to gauge inflationary pressures in the economy and determine whether interest rates need adjustment. The Fed's Open Market Committee has refrained from raising interest rates at its last three meetings, following six straight increases. The central bankers will meet again Nov. 15. Transport Topics
Summit Strike Begins to Take Toll on Safeways
The ongoing strike of a Safeway (SWY) distribution center by Summit Logistics workers is beginning to affect several grocery stores in California, the San Francisco Chronicle reported Thursday.
Some stores are experiencing shortages of products ranging from milk to diapers, the story said, while others are not receiving deliveries on schedule. The striking workers have also affected business by encouraging shoppers to boycott Safeway or by intimidating replacement workers into quitting, the Chronicle noted.
The strike started last Wednesday when Teamsters workers and Summit Logistics could not agree on a new contract. The Northern California distribution center in question serves Safeways in California, Oregon and Hawaii. Transport Topics
FTC Says Antitrust Laws Sufficient for B2Bs
The Federal Trade Commission released a report Thursday saying current antitrust laws and authority are sufficient to handle any concerns regarding business-to-business ventures (B2Bs), CBS Marketwatch reports.The report lays a foundation for identifying and addressing any B2B antitrust concerns, FTC Chairman Robert Pitofsky said in the story.
The FTC earlier this year investigated a major B2B in Covisint – the joint venture planned by General Motors (GM), Ford Motor Co. (F), DaimlerChrysler (DCX), Renault SA (13190-PAR) and Nissan (NSANY) along with information technology companies Commerce One (CMRC) and Oracle (ORCL) – but at the time could not find any negative impact on competition, the story said. Transport Topics
Headlines From Today's A.M. Briefing
- PNV Cutting 15% of Workforce
- Oshkosh 4Q Earnings Up
- Goodyear Acknowledges Tread Separations, 60 Lawsuits Consolidated
- New Web Exchange for Airlines Will Include UPS
- FedEx Pilots Union Talking With Teamsters, Air Line Pilots Assoc.
- Rollins Truck Leasing Reports Lower 4Q
- Oil Prices Jump on Iraq Export Worries
- Canacar Ends Protest - For Now
- AmeriQuest, TradeOut Take Aim at Excess Inventories
- Global Warming Getting Worse, Partly Due to Particulate Reduction
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