P.M. Executive Briefing - Sept. 26
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More Air Freight Fuel Surcharges Rising; Rail Hike Possible
More air cargo carriers have said they were raising fuel surcharges, and another railroad is said to be moving that way.
Airborne Express said it would add a percentage point to the 3% fuel surcharge it already has in place, Bloomberg reported. The increase takes effect Oct 16.
Northwest Airlines Cargo joined its KLM alliance partner by announcing a higher surcharge for Northwest's Europe-originated shipments to North America, the Journal of Commerce Online reported. Like the increase at KLM reported Monday, this would take effect Nov. 1.
Canadian Pacific Railway is considering pushing its freight rates higher to help cover spiraling energy costs, according to Canadian media reports cited by Bloomberg. It said the Alberta-based company, which also has extensive lines in the United States, may implement a fuel surcharge of 3% to 5%. Recently, U.S. railroad companies Union Pacific and CSX said they were raising some rates because of fuel costs. Transport TopicsUS&T Reports Loss, But Sees Profit Within Next Year
Same-day delivery company United Shipping & Technology reported Tuesday a net loss for its fourth quarter that ended July 1 that was worse than one a year earlier, but said its underlying trend is improving in companies it has been acquiring.The company said it lost $11.1 million, or 76 cents per share, compared with a loss of $838,000 or 6 cents a share in the same period of 1999. US&T attributed this in part to a onetime, non-cash charge related to obtaining additional capital, which Chief Financial Officer Tim Becker said the company spent on "unifying an national footprint."
US&T said it also suffered operating losses, but Becker said the company expects to be profitable by the end of its next fiscal year in July 2001. Transport Topics
EU Leaders Discussing Release of Their Oil Reserves
The European Union will not be following in the United States' footsteps immediately by releasing oil from their own strategic reserves, the Associated Press said Tuesday. But AP said the possibility will be a likely topic at Friday's meeting of 15 EU finance ministers, and another development gave the idea more momentum.Spanish Prime Minister Jose Maria Aznar and French President Jacques Chirac both said on Tuesday they agreed that the oil reserves should be released, another AP story said, in an attempt to lower fuel prices that have prompted massive protests across the continent.
The European Commission can help coordinate any usage of reserves, but individual countries must decide on a release, an EU spokesman told AP. Transport Topics
Still No End in Sight for LA Transit Strike
The Los Angeles transit strike is now in its 11th day with no end in sight, the Los Angeles Times reported Tuesday, even though talks have been been held between the Metropolitan Transportation Authority, the union representing its drivers and state mediators.A total of almost 450,000 transit riders are affected by the strike. Some are unable to get to work or school and many businesses are suffering, the Times said.
Reports have also said the strike has added to drive times around the already congested L.A. freeway system, which is a major truck zone linking the major containers ports south of the city with cross-country highways and the huge California market. Transport Topics
TruckCenter.com Names Dorr President/CEO
Online truck-sales marketplace TruckCenter.com announced Tuesday that John H. Dorr has been appointed company president and chief executive officer, effective immediately.TruckCenter.com is a business-to-business operation that offers truck and related sales, and services such as financing, insurance, certification, warranty and third-party inspections.
Entrade, which provides software for the company, also holds 80% ownership of TruckCenter.com. Transport Topics
Small Baggage Strike at Denver Not Affecting Flights
Eighty-five union workers who normally handle Denver International Airport's automatic baggage system went on strike Tuesday, but did not appear to be disrupting business, the Denver Post's online version reported.The union workers are United Airlines employees, but their 4,500 fellow workers have not yet joined their cause, as had been threatened by union leaders, the Post noted.
Any significant disruption of air operations could affect regional trucking that either serves the air freight business. That's because passenger planes carry cargo in their bellies, and lost belly freight space when passenger fligths are disrupted can in turn pile up more parcels for the already busy air cargo carriers. Transport Topics
American Petroleum Exchange Web Matching to Debut
The American Petroleum Exchange will link 36 fuel suppliers with potential customers via the Web when it debuts Monday, Oct. 2, the company announced Tuesday.The system will allow customers to receive quotes on diesel and gasoline purchases online. Express delivery giants UPS and FedEx Ground, plus leading retailer Wal-Mart are among the first businesses who will secure quotes through the Exchange. Transport Topics
Delphi Will Supply Wiring for Volvo Trucks in Europe
Delphi Automotive, looking to move outside the auto-parts realm, will supply electrical wiring for more than half of Volvo's European-built trucks, for an undisclosed amount, Bloomberg reported Tuesday.Delphi, based in Michigan, will make at least 120,000 wiring harnesses for 40,000-plus Volvo trucks built in Sweden and Belgium, the article said.
The company has recently entered into agreements in other non-automotive areas with companies such as Deere & Co., Caterpillar and Harley-Davidson, Bloomberg noted. Transport Topics
Headlines From Today's A.M. Briefing
- U.S. Diesel Prices Rise Slightly; Some Areas See Decline
- Yellow Expects 3Q Earnings At or Above Estimates
- Swift Says 3Q, 4Q Will Fall Below Estimates
- Landstar Expects 3Q Earnings in Analysts' Range, But Sees Charge
- Computer Sciences Wins U.S. DOT Contract
- DaimlerChrysler, Hyundai May Extend Truck Alliance
- Roadway Express Income Up 12.4% in Latest Qtr
- Cannon Reports Earnings Loss; Cummins Expects Lower Results
- West Coast Harbor Truckers Plan Protest Rallies
- Transport Funding Bill Reported Stalled on Alcohol Fight
- Trucker Protests cool in Australia, Flare in Germany
- Illinois Outfits Interstates With Traffic-Monitoring Cameras
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