P.M. Executive Briefing - Sept. 7
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Former Interim Head of Emery Worldwide Is New CEO
Emery Worldwide has a new chief executive officer, Chutta Ratnathicam. The wholly owned subsidiary of CNF Inc. announced the promotion today. He replaces Roger Piazza, who retired.Ratnathicam, 52, most recently served as CNF's senior vice president and chief financial officer. He joined CNF in 1977, and served as interim CEO of Emery for a brief period in 1998.
Ratnathicam will have management responsibility for Emery Worldwide, plus its units for air freight, global logistics, customs brokerage, ocean freight and expedited delivery.
Fuel Situation Worsens in France From Truck Blockade
A threatened farmers' blockade of the English Channel Tunnel nearly became reality Thursday, and the ongoing oil refinery blockade by truckers angry over high fuel costs is shrinking fuel supplies at French airports, news agencies report. The trucker-farmer protest is in its fifth day.Like their trucker compatriots, French farmers showed their anger over rising fuel costs by attempting a blockade – this one of the Chunnel near the port town of Calais, United Press International reported. Police headed off farmers on their tractors before they reached the Chunnel, the story said.
Meanwhile, fuel supplies at airports in Rennes and Nantes ran out completely, and several other airports' supplies are expected to run out within the next few days, Bloomberg reported. Transport Topics
Emons Reports Fourth-Quarter Drop, Record Yearly Earnings
Rail freight transportation and distribution service provider Emons Transportation Group said Thursday it experienced record income for its fiscal year ended June 30, even though fourth-quarter income before taxes decreased 9.8%.Emons' offerings include rail freight transport in both intermodal and carload categories, plus intermodal terminal operations connecting trucks with trains.
For the fiscal year, pretax income rose 3.6% to $2.8 million, the company said.
Emons Chairman and President Robert Grossman noted that "trailers and containers handled increased 39.4% for the fourth quarter to 3,300 units and 16.2% for the fiscal 2000 year to 11,000 units. Intermodal volumes continued to increase at a rapid rate in the first two months of fiscal 2001. As a result of our intermodal prospects, we are in the process of doubling the size of our intermodal terminal."
Grossman also noted that, like many trucking companies, Emons had to institute freight rate increases to offset the rising cost of diesel fuel. Transport Topics
Mitsubishi Again Recalls Japan Minicabs; Volvo Confirms Talks
Japanese automaker Mitsubishi Motors Corp. announced a new recall Thursday, this time to replace fuel caps used to replace ones recalled just two weeks ago, the Associated Press reports.Fuel tank caps on 45,000 Minicab trucks – which are only sold in Japan – did not shut properly and could cause leaks, the article said. The exchanged caps were also defective, prompting the re-recall. The news is the latest in several weeks of scandal for Mitsubishi, which is under investigation for a cover-up of other defects leading to recalls.
Also, a spokesman for Swedish truck maker Volvo confirmed that company is indeed in talks to up its stake in Mitsubishi's truck and bus division, AP noted in another report. Bloomberg had previously reported that such talks were under way. The comes as DaimlerChrysler is also reportedly negotiating for a bigger chunk of Mitsubishi. Transport Topics
Grupo Dina Begins Cutback
Employees of Grupo Dina told a Mexican news group that the Mexican truck maker has begun proceedings to lay off 150 of its 300 non-contract employees, a report that was retransmitted on Bloomberg.Dina also may sell its Dina-Camiones plant, which has been shut down since July 6, to Volvo, according to the report.
Dina signed a 10-year agreement last October with Western Star Truck Holdings, which is being purchased by DaimlerChrysler subsidiary Freightliner, to produce Class 6 and 7 trucks for the United States, Canadian and Australian markets. The Freightliner deal had thrown future Dina production into doubt, and Dina has also suffered from the generally ailing demand for trucks in North America. Transport Topics
FedEx Ground Names Gershultz Senior VP for Operations
FedEx Ground has promoted David Gershultz to senior vice president for operations, the company said Thursday. Gershultz will manage FedEx Ground's hub and linehaul network and 369 local pickup-and-delivery facilities throughout the United States and Canada. His most-recent position was vice president of the southern division for the small-package ground carrier. He will be replaced there by William Snavely, now managing director of the Southwest region for FedEx Ground.
FedEx Ground is the second-largest, small-package ground carrier in North America, with revenues of $2 billion in fiscal year 2000. Parent FedEx Corp. has annual revenues of $18 billion. Transport Topics
Peapod Buys Streamline.com's Chicago, D.C. Operations; Exits Some Markets
Peapod, an online grocery delivery service, has bought Streamline.com's operations in Chicago and Washington, D.C. – and will exit markets in Ohio and Texas, the company announced Thursday.
The Skokie, Ill.-based Peapod will pay about $12 million in cash for the assets in the Chicago and Washington markets – including facilities, an established customer base, plus an existing workforce and management. It expects to add service to the Baltimore-Washington corridor as early as the fourth quarter.
Peapod will use centralized distribution both from main warehouses and smaller "fast-pick" order fulfilment centers, the company said. Peapod uses light-duty, medium-sized StepVans, company spokeswoman Paula Wheeler told Transport Topics.
Peapod will exit Columbus, Ohio, and three Texas markets – Houston, Austin and Dallas – by Sept. 15. However, those customers will still be able to use the company's non-perishable "Peapod Packages" delivery service. Transport Topics
Ford Will Build New Manufacturing-Distribution Complex
Ford Motor Co. plans to build a $400 million parts manufacturing and distribution complex near a Chicago plant, Bloomberg reported Thursday. Such facilities also boost trucking companies that haul materials in or parts out.The new complex is expected to bring 1,000 jobs to the area and to provide Ford with a steady parts supply, the article said. The project is expected to be completed in 2003. Transport Topics
Peterbilt Truck Accessories Catalog Now Available On-line
Peterbilt customers can now find its full list of truck accessories via the company's Web site, the Paccar subsidiary announced Thursday.The Peterbilt Truck Accessories Catalog is now available online for customers to browse more than 30 product lines, for accessories from chrome exhausts to floor mats. A print version is still available at Peterbilt dealerships, the company said. Transport Topics
Headlines From Today's A.M. Briefing
- Teamsters Poised to Endorse Gore for President, Reports Say
- Viking Freight to Raise Rates in October
- DaimlerChrysler Pushes for Bigger Chunk of Mitsubishi
- U.S. House GOP to Try Overriding Estate Tax Veto
- USPS May Take FedEx Deliveries to Homes
- Citigroup's Associates Buy Brings Big Truck Portfolio
- French Truckers' Oil Blockade Moves Into Fifth Day as More Join Effort
- French Protest Brings Fear of Similar Action Elsewhere in Europe
- Roadside Project Completed, Lanes Reopen on I-70 in Maryland
- Texas Intermodal Yard's Expansion to Continue
- Fiat Will Crack Down on Workers Found Making Faulty Products
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