News Briefs - June 19
The Latest Headlines:
- UPS Makes Contract Proposals to Teamsters
- Navistar, Union Talks Break Down After One Day
- Oil Dips on Expected OPEC Export Boost
- Train Wreck Causes Fire, Closes Road
- Celadon Expects to Beat Earnings Estimates
- N.J. State Police to Step Up Truck Inspections
- Companies Plant Trees in N.Y. to Fight Pollution
- Adesa Sells Truck Subsidiary
- Yellow to Exceed 2Q Estimates
- Navistar, Union Talks Break Down After One Day
UPS Makes Contract Proposals to Teamsters
United Parcel Service responded to Teamsters union wage and benefit proposals with a proposed package of its own, the Journal of Commerce reported Wednesday.Negotiations between the Teamsters and the Atlanta-based company are scheduled to continue into next week.
The current contract is set to expire July 31.
Navistar, Union Talks Break Down After One Day
Truck maker Navistar International Corp. and the Canadian Auto Workers union said their talks broke down Tuesday night at about 10 p.m. after just one day.The sides had resumed talks earlier in the day, Bloomberg reported.
The strike at the plant in Chatham, Ontario, began more than two weeks ago when the two sides failed to agree on a new contract after the previous one expired. (Click here for related coverage.)
After talks broke off, Navistar said it was going to use temporary workers to resume production at the plant "as soon as possible."
A spokesman for the union had called the talks "exploratory," Bloomberg reported. Robert Chernecki, national assistant to CAW President Buzz Hargrove, said the two sides were talking about some tough issues that may lead to full negotiations.
A company spokesperson said the two sides were close on some issues, but not close enough, Bloomberg said.
Based in Warrenville, Ill., Navistar has ramped up production at its plant in Escobedo, Mexico, to offset the loss of production because of the strike. Transport Topics
( for the full press release.)
Oil Dips on Expected OPEC Export Boost
The price of crude oil dipped slightly in Wednesday trading as a spokesperson for the Organization of Petroleum Exporting Countries said the cartel would likely boost exports in September, Bloomberg reported.The news pushed oil prices down 0.9% on both the International Petroleum Exchange in London and the New York Mercantile Exchange Thursday. In London, oil fell to $24.57 a barrel and it dipped to $25.20 a barrel in New York, Bloomberg said.
Crude oil is distilled into diesel and gasoline, the primary fuels for trucks, making its cost very important to the trucking industry.
A OPEC spokesman said the decision to ramp up exports sometime this summer is is dependent on whether Iraq’s oil production remains below normal and demand recovers.
Bloomberg reported that according to United Nations figures, Iraq shipped 3.1 million barrels of oil last week, up 19% from the previous week, but still behind what the country would normally export. Transport Topics
Train Wreck Causes Fire, Closes Road
Three Union Pacific freight trains collided Wednesday morning near North Platte, Neb. Starting a fire that closed a 13-mile stretch of U.S. Highway 30, the Associated Press reported.The need to detour around accidents can disrupt tight trucking schedules.
There were no hazardous materials involved in the wreck, authorities said. The fire was most likely fueled by diesel fuel from the rail engines, AP reported.
AP said no injuries were immediately reported. The fire burned for about two hours and was extinguished at around 6:30 a.m. local time. Transport Topics
Celadon Expects to Beat Earnings Estimates
Truckload carrier Celadon Group Inc. said Wednesday it expects to beat estimates with earnings per share of between 12 cents and 14 cents for its 2002 fiscal fourth quarter ending June 30.The company said analysts are expecting earnings of 11 cents per share.
Chief Financial Officer Paul Will attributed success to the integration of several customers of former Burlington Motor Carriers, and cited the purchase of 300 tractors and 800 trailers as the largest expenses the company faced in the quarter.
The Indianapolis-based company, ranked No. 45 in the Transport Topics 100 list of the largest U.S. trucking companies, reported a loss of 5 cents per share in the fourth quarter of 2001. Transport Topics
( for full press release.)
N.J. State Police to Step Up Truck Inspections
The New Jersey State Police are cracking down on unsafe tractor-trailers, the Traffic Bureau said in a statement issued Wednesday.The stepped-up enforcement initiative will include “front-to-back” equipment checks by truck inspection teams, the statement said, and are part of a statewide effort to improve motorist and truck safety.
The focus of the program will be on Interstate highways in northern New Jersey along with secondary and local roads, the police said. Officials highlighted the New Jersey Turnpike and Interstates 80, 280, 287, 195 and 295 for the program.Transport Topics
Companies Plant Trees in N.Y. to Fight Pollution
Several companies with trucks, vans and buses have agreed to plant 100 trees in New York in compensation for violating anti-idling laws, Reuters reported Wednesday.Officials from the New York State Attorney General’s Office say idling engines lead to health problems, and said planting additional trees is a more effective way to fight that than just imposing fines, the story said.
The state has pinned the six most frequent violators of anti-idling laws and three of the most affected neighborhoods, central Harlem, south Bronx and Fort Greene in Brooklyn, Reuters said.
In addition to planting the trees, the companies involved have agreed to train their drivers about the anti-idling laws and pay $1,000 to $5,000 per violation, Reuters reported. Transport Topics
Adesa Sells Truck Subsidiary
Vehicle remarketer Adesa Corp. said Monday it has sold the assets of its transportation subsidiary, Great Rigs Inc., to The Waggoners Trucking, based in Billings, Mont.As part of the arrangement, Waggoners will provide transportation services for ADESA auctions and their customers.
Jim Hallett, chairman and chief executive officer of Allete, parent company for Adesa, said the sale is intended to allow the company for focus on core busines while outsourcing as necessary. Allete is based in Duluth, Minn.
Employees of Great Rigs will be offered jobs with Waggoners. Transport Topics
( for the press release.)
Yellow to Exceed 2Q Estimates
Yellow Corp. said late Tuesday that it expects to exceed second-quarter consensus earnings estimates.The Overland Park, Kan.-based company's new estimate is in the range of 22 cents and 25 cents per share, it said in a release. The current analyst consensus calls 20 cents per share.
For the first quarter, Yellow Corp earned $2.1 million, or 8 cents per share, on sales of $762.3 million.
"We will have positive year-over-year tonnage comparisons for the second quarter, which is encouraging," said Bill Zollars, Yellow chairman, president and chief executive officer. "The increased business volumes are the result of modest but steady economic improvement, market share gains and continuing growth in our guaranteed services, our expedited air and ground service. The combination of these factors has added to our profitability for the quarter."
Yellow is ranked No. 5 on the 2000-2001 Transport Topics 100 list of the largest U.S. trucking companies. Transport Topics
( for the full press release.)