News Briefs - Dec. 9
The Latest Headlines:
- DOE Says Oil Prices Have Peaked
- Court Defers Mexican Trucks Decision
- Holiday Buying Could Help Package Carriers
- OPEC Expected to Push Members to Cut Production
- Landrieu Wins Final Senate Seat
- United Airlines Files For Bankruptcy
- Survey Says Gas Prices Declining
- Court Defers Mexican Trucks Decision
DOE Says Oil Prices Have Peaked
The Energy Information Administration, the survey division of the Department of Energy, said Monday in its Short-Term Energy Outlook that it believes world oil supplies are on the rise and that prices for the commodity have peaked.Crude oil is often distilled down into, among other things, diesel fuel and gasoline, which are heavily used by the trucking industry.
The report by the EIA said that “on the basis of market fundamentals” oil prices appear to have peaked, but it hedged its outlook by saying events in Venezuela (Click here for related coverage.) or Iraq (Click here for related coverage.) could cause prices to fluctuate outside of their projections.
Court Defers Mexican Trucks Decision
A federal appeals court deferred making a decision on a request to continue to prevent Mexican trucks from gaining broader access to U.S. roads, Reuters reported late Friday.The Ninth U.S. Circuit Court of Appeals in San Francisco said it would not rule on the motion brought by the Teamsters union and several environmental groups until trucks were closer to coming across the border, Reuters reported.
The decision delayed a ruling until the Department of Transportation was ready to issue permits to Mexican trucking companies or the Bush administration and the Mexican government came to some agreement on the role of U.S. safety inspectors in Mexico. Transport Topics
Holiday Buying Could Help Package Carriers
With deep discounts boosting sales this holiday season, analysts believe that package delivery companies like United Parcel Service Inc., FedEx Corp. and Airborne Inc. could be big winners, the Associated Press reported.Many retailers have committed themselves, observers said, to having a good holiday season volume-wise, perhaps at the expense of profits, AP reported. That decision, along with a shorter than usual holiday shopping season, has pushed the short-term outlook for package delivery firms higher, AP said.
After the holidays, however, industry observers said that after the holidays, those companies still might see a boost as companies try to rebuild their inventories, AP said.
UPS and FedEx both said that Dec. 19 is likely to be their peak day of the holiday season – with UPS carrying 19 million packages and FedEx shipping five million. Each company has hired part-time seasonal help, AP reported.
UPS and FedEx are ranked Nos. 1 and 2 respectively on the 2002 Transport Topics 100 listing of the largest trucking companies in the United States and Canada. Transport Topics
OPEC Expected to Push Members to Cut Production
With its members pumping far more oil then they are allowed to, OPEC is expected to ask its members to tighten crude oil supplies and adhere to their quotas, the Associated Press reported.Crude oil is distilled down to fuels like diesel and gasoline, and changes in its price are often passed on to consumers at the pump.
AP reported that the largest member of the Organization of Petroleum Exporting Countries, Saudi Arabia, in addition to pushing for better adherence to the cartel’s quotas, will pitch an increase in those limits, AP said.
Several analysts believe this seemingly contradictory policy is the best way for OPEC to keep oil prices stable and in the group’s desired range of between $22 and $28 a barrel, AP reported. Transport Topics
Landrieu Wins Final Senate Seat
Democratic Sen. Mary Landrieu held onto her seat in a tight runoff election in Louisiana, the Associated Press reported Sunday.Landrieu’s win in the Dec. 7 special election gave Democratic leaders a bit of good news to cap an otherwise gloomy election cycle, AP said.
The victory brough the total number of Democrats in the Senate to 48, with Sen. Jim Jeffords (I-Vt.) generally voting with the party. The Republicans regained control of the body with a total of 51 members in the Senate, AP said.
With control of the Senate, Repbublicans are expected to be able to put items from the Bush agenda on the body’s docket, AP said. Transport Topics
United Airlines Files For Bankruptcy
Struggling United Airlines filed for Chapter 11 protection in U.S. Bankruptcy Court in Chicago.The company said in a release that it will continue to operate as normal as it proceeds through the bankruptcy process.
United, like most airlines, carries some air cargo and airfreight in addition to its passenger service.
The Associated Press reported that the company was pushed to seek protection after two years of heavy losses and its inability to pay off nearly $1 billion in debt that is slated to come due later in the week.
The bankruptcy of United is the largest U.S. airline filing ever. The Chicago-based compay has 83,000 employees and operates 1,700 flights a day – about 20% of all flights, AP reported. Transport Topics
( for the full press release.)
Survey Says Gas Prices Declining
The price of gasoline fell by 2 cents nationwide during the two-week period ended Dec. 6, the Associated Press said.According to Trilby Lundberg, the average price of all grades of gasoline, including taxes, was $1.41 a gallon, the Associated Press reported. On the date of her last survey, Nov. 22, the price was $1.43 a gallon.
Gasoline, while not the dominant fuel used in over-the-road trucking, is still important to the industry.
Lundberg said that prices fell because crude oil costs remained low and supplies stayed plentiful, AP said.
Every two weeks, Lundberg surveys 8,000 filling stations to compile her snapshot of gasoline prices. Transport Topics
9679