P.M. Executive Briefing - Sept. 29
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EU Will Not Tap Reserves; Oil Prices End Drop
European Union countries could not agree Friday on a plan to release oil from their strategic reserves, opting instead to try to open dialogue with oil-producing countries, Bloomberg reported.On that news, crude oil prices began to rise again, after decreasing for the past week following the United States' decision to tap their own reserves. U.S. crude oil rose 1.6%, to $30.82 per barrel on the New York Mercantile Exchange; Brent crude on London's International Petroleum Exchange rose 2.3% to $29.94 per barrel, the article said.
The European Union did not completely rule out a future release of oil reserves, French Finance Minister Laurent Fabius told the press. The EU also ruled out an across-the-board fuel tax cut, Bloomberg said. Transport Topics
Navistar Announces Move to Chicago Suburbs
Navistar International Corp. announced Friday it will move its headquarters from Chicago to the nearby suburb of Warrenville; the new office complex should be ready for occupancy in December.Navistar International Corp. is the maker of International brand trucks, buses and diesel engines.
This confirms a rumor the company had dismissed earlier in the month. A Chicago Tribune article had made note of the possible move, but at the time Navistar officials said they intended to continue the company's 169-year relationship with the city of Chicago, Transport Topics previously reported.
"By co-locating many of our Chicago area employees into a single facility, we will be able to realize efficiencies and teamwork never before possible," said Pamela Hamilton, senior vice president for human resources and administration. "Additional savings will be achieved through the subleasing of our current world headquarters space." Transport Topics
N.J. Toll Increase, E-ZPass Use Go Into Effect Saturday
Tolls will increase on the New Jersey Turnpike Saturday, but newly added "E-Zpass" lanes will open that offer lower fares, The Record (Bergen County, N.J.) reports.With the toll increase also comes new off-peak discounts, the first to be offered in the United States, according to a previous report in Transport Topics. Cars traveling the 148 miles from one end of the state to the other will pay $5.50, up from the previous $4.60 toll. But car drivers using E-Zpass during off-peak hours will pay approximately 20% less, and truckers about 13% less.
About 100 additional toll workers have been added to ease the transition to the E-ZPass system and clear any confusion, a turnpike official told The Record.
New Jersey Turnpike tolls will increase another 17% for cars and 13% for trucks in 2003 to fund highway improvement projects, according to TT's previous report. Transport Topics
Target Logistics 4Q Results Show Fast Growth, Net Loss
Target Logistics said it lost 7 cents per share in its fiscal fourth quarter that ended June 30. That compares with net income of 3 cents a share a year earlier, but the company said its revenues jumped and it shaved an operating loss.Target offers freight forwarding and logistics services through its Target Logistic Services unit.
Revenues for the quarter were $19.6 million, up 22% from the same period in 1999. The operating loss for the latest quarter was $394,826, compared with an operating loss of $1.07 million reported for the fourth quarter of fiscal 1999.
The net loss included a provision for income taxes of $351,198, and net income for the quarter also included an income tax benefit of $1,428,847.
Target Logistics President and Chief Executive Officer Stuart Hettleman said the company is experiencing "significant growth" in its logistics business, as well as general internal growth. He also said the company is looking to become more active on the acquisition front. Transport Topics
TruckersB2B to Offer Discounted Pre-Paid Legal Services
TruckersB2B, a Celadon Group company which pre-negotiated savings to members on various products and services, announced Friday it will now add pre-paid legal services to truck drivers.Thanks to an agreement with Pre-Paid Legal Services Inc., TruckersB2B will offer a Commercial Drivers Legal Plan, which will include benefits such as representation for moving or non-moving violations, bail bond and tragic accident defense. Transport Topics
Several Countries Agree to Help Ease Fuel Costs
The governments of Argentina and Greece found ways to cut fuel prices, while Britain's struck a deal to keep fuel supplies flowing in case of another protest, several news agencies reported Friday.Argentina agreed to cut road tolls by 50%, lower the price of diesel fuel and offer tax breaks to truckers and farmers, Reuters reported. Greece, meanwhile, will cut fuel taxes by three drachmas per liter to ease truckers' costs, Bloomberg said. Greek truckers have been on strike this week over the cost of fuel, the article said.
South African truckers could stand to benefit from a similar sort of plan, as Bloomberg reports the price of diesel in that country is expected to rise 12% in the next month. The country's Department of Minerals and Energy said in a statement Friday that diesel prices will rise 37 cents to a record 3.43 rand (47 cents) a liter, the report said.
The British government came to an agreement with oil companies that would keep fuel supplies going in the event of another protest like the one that cut into supplies earlier this month, Reuters reported. The agreement will implement joint early warning systems, contingency plans and crisis management, the article said. Transport Topics
Headlines From Today's A.M. Briefing
- Fritz Companies Up Slightly From 1Q 1999
- Airborne Freight Warns of 3Q Loss
- Covenant Transport Warns on 3Q Earnings
- Ontario Fuel Surcharges Move Forward
- Oil Prices Up on EU Reserve Concerns; OPEC Production Increased in September
- Rail Intermodal Traffic Rises Again
- Low U.S. Demand Affecting Tomkins' Sales
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