News Briefs - June 7
The Latest Headlines:
- Central Transport Raises Freight Rates
- Court Asks Solicitor General for Input on Michigan Truck-Fee Dispute
- XRG Completes Acquisition of Carolina Truck Connection
- Freightliner Adds Production Workers
- Michelin to Cut Jobs in France
- UTi Worldwide Reports Higher 1Q Earnings
- Air Cargo Shipments Rise in April
- Court Asks Solicitor General for Input on Michigan Truck-Fee Dispute
Central Transport Raises Freight Rates
Less-than-truckload carrier Central Transport said Monday it would implement a general rate increase of 6.13% effective June 19.he company said in a statement it has had a hard time holding down costs due to "the difficult economic conditions the entire industry faces today," as well as the cost of insurance, fuel and security.
Central Transport is ranked No. 45 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. Transport Topics
Court Asks Solicitor General for Input on Michigan Truck-Fee Dispute
The Supreme Court has asked U.S. Solicitor General Theodore Olson for his views on whether it should hear appeals by USF Holland, the American Trucking Associations and some private truckers over a fee Michigan charges trucks.The state charges $100 a year for every truck used for trips entirely within the state's borders, and for each Michigan-licensed vehicle used for interstate hauling.
USF Holland and ATA claims the flat fee for in-state hauling discriminates against interstate commerce in violation of the U.S. Constitution, Bloomberg said.
The court also sought Olson's views on appeals by privately held Michigan trucking companies, Bloomberg reported. They argue that federal laws pre-empt the $100 fee for in-state trucks and the $100 fee for Michigan-licensed trucks that operate interstate.
Michigan appeals court ruled against the companies. Transport Topics
XRG Completes Acquisition of Carolina Truck Connection
XRG Inc. said Monday it completed the acquisition truckload carrier Carolina Truck Connection Inc., based in Fletcher, N.C."With the completion of this acquisition we will be adding company equipment to our fleet," said Chief Executive Officer Kevin Brennan. "The addition of CTC represents not only an addition to our revenue, but an opportunity to add new customers and company drivers to our wholly own subsidiary XRG Logistics."
The company said in a statement the deal calls for it to issue 1.2 million shares of common stock and the assumption of $470,000 in debt.
In April, XRG said it completed the acquisition of truckload carriers HighBourne Corp. and Highway Transport Inc. Transport Topics
Freightliner Adds Production Workers
Freightliner LLC, North America’s leading truck maker, said it was increasing the workforce at two production facilities to keep pace with what it called the vigorous recovery in the heavy-duty truck market.“We are experiencing strong demand across our Class 8 product line and especially in the over-the-road segment,” Chief Executive Officer Rainer Schmueckle said in a statement June 2.
Freightliner said it would add a third shift and 593 full-time jobs in mid-July at its heavy-duty truck plant in Cleveland, N.C.
The facility, the company’s largest, currently employs 3,000 people in the production of Class 8 vehicles.
The additional workers will push employment levels there to their highest point in five years, Freightliner said.
The company also said it added 100 full-time employees at its Gastonia, N.C., plant that produces truck cab and chassis parts.
I>Transport Topics
This story appeared in the June 7 print edition of Transport Topics.
Michelin to Cut Jobs in France
French tire maker Michelin said it would cut 2,900 jobs in France over the next three years through attrition, the Associated Press reported.Michelin employed 24,400 people in France at the end of 2003, and 127,210 in other countries worldwide, AP said.
The company said it would replace only 3,100 of the 6,000 workers expected to leave the company voluntarily or retire in the next three years. Transport Topics
UTi Worldwide Reports Higher 1Q Earnings
Supply-chain management company and freight forwarder UTi Worldwide Inc. said Monday its net income for the 2005 fiscal first quarter ended April 30 was $12.8 million or 40 cents per share, compared with $8 million or 26 cents a year earlier.otal net revenues for the quarter rose 29% to a record $170 million, the company said in a statement.
First-quarter results reflect another quarter of solid gains in gross and net revenues across all service categories and geographic regions over the year-ago comparable period," said Roger MacFarlane, chief executive officer. Transport Topics
Air Cargo Shipments Rise in April
Total air cargo shipments rose by 6.9% in April compared with a year earlier, fueled by an increase in freight and express package shipments, according to the Air Transport Association.Air cargo shipments rose to 2 billion revenue ton-miles. A revenue ton-mile is the measure by which the association gauges air cargo shipments. A revenue ton-mile is the revenue generated by carrying one ton of freight one mile.
Freight and express shipments rose 8.4% to 1.9 billion revenue ton-miles, with mail shipments fell 15.7% to 100,276 revenue ton-miles.
Air cargo shipments are often hauled to and from airports by trucks. Transport Topics