News Briefs - May 23
The Latest Headlines:
- Wabash Announces Departure of Two Officers
- Two Fed Officials Expect Slower Growth in 2Q
- CF Wins $200 Million Contract From GE
- Mich. Gov. Candidate Presses for Changes in Transportation
- Trucking Co. Owner Opposes 120,000-Pound Load Limit
- Weaker Dollar Seen Helping Manufacturers
- Initial Jobless Claims Drop 9,000 Last Week
- Trailer Bridge Contends Nasdaq Delisting
- Price of Crude Oil Rises Ahead of Holiday Weekend
- Velocity Changes Stock Ticker Symbol
- AFL-CIO Approves Dues Hike Despite Opposition
- Section of I-55 to Close Near Chicago
- Two Fed Officials Expect Slower Growth in 2Q
Wabash Announces Departure of Two Officers
Trailer maker Wabash National Corp. said Thursday that Richard E. Desimoz, former interim chief executive officer, and Arthur R. Brown, chief operating officer, are leaving the company.Desimoz was replaced as CEO by William Greubel earlier this month, but remained with the company in his former position as vice president (Click here for earlier coverage.).
No immediate replacement was named for Brown.
Wabash designs, manufactures and markets standard and customized truck trailers under the Wabash and Fruehauf brands. Transport Topics
( for the full press release.)
Two Fed Officials Expect Slower Growth in 2Q
Two Federal Reserve policymakers expressed cautious optimism about the U.S. economy on Thursday and said growth is likely to slow from the first quarter's pace, Reuters reported.Trucking is sensitive to economic conditions and signs of growth are good news for the industry.
Chicago Fed President Michael Moskow said because the recession was moderate, it should be expected the early stages of the recovery will also be moderate.
Separately, Dallas Fed President Robert McTeer said he expects U.S. gross domestic product to grow more slowly in the current quarter than the previous quarter.
GDP grew at an annual rate of 5.8% in the first quarter after advancing 1.7% in the final three months of 2001. Transport Topics
CF Wins $200 Million Contract From GE
Consolidated Freightways said Thursday it was awarded a $200 million freight transportation contract from General Electric Co.The five-year deal names the company as GE’s core national less-than-truckload carrier and primary ground expedited provider. Consolidated Freightways will serve all 12 of GE’s businesses and their subsidiaries.
Nearly one-third of CF's current business with GE involves specialty expedited and cross-border freight, the company said in a release.
Based in Vancouver, Wash., CF is ranked No. 11 in the 2000-2001 Transport Topics 100 list of the largest trucking companies in the U.S. Transport Topics
( for the full press release.)
Mich. Gov. Candidate Presses for Changes in Transportation
Michigan Democratic gubernatorial hopeful David Bonior and his running mate,lma Wheeler Smith, want to boost the state’s diesel tax by 4 cents per gallon and reduce the weight limit on trucks from 164,000 pounds to 80,000 pounds, the Associated Press reported Monday.
In addition, they want to focus on improving to existing roads, rather than adding more lanes to its highways and expand freight rail lines. All of these proposals could have a palpable effect on trucking in that state.
A spokesman of the Michigan Department of Transportation said although it agrees with the need to raise the diesel tax from 15 cents to 19 cents per gallon, stopping road expansion would only lead to more congestion, AP said.
And while Bonior said that lower weight limits may mean more trucks, but they would be lighter and safer, DOT disagreed with that argument, saying road and bridges in the state were built to handle the heavier loads. Transport Topics
Trucking Co. Owner Opposes 120,000-Pound Load Limit
Though some in the West Virginia coal industry are in favor of boosting the load limit for coal trucks to 120,000 pounds from 80,000, at least one trucking company owner is not, the Associated Press reported Wednesday.Speaking at a public hearing, Terry Jones, owner of Walter R. Jones Trucking, told Gov. Bob Wise’s Truck Safety Work Group that raising the limit would be a nightmare to enforce, the AP said.
He also said new drivers would have trouble handling rigs that large and the recent increase in traffic would make trucks this size more dangerous.
However, Jones said he would support an increase in the limit to between 90,000 and 95,000 pounds, the AP said. Transport Topics
Weaker Dollar Seen Helping Manufacturers
During the past three months, the value of the U.S. dollar has slipped against other major world currencies, a phenomenon that could help the country’s manufacturers, the Wall Street Journal reported Thursday.A weaker dollar can push the prices paid for U.S. goods overseas down, increasing sales and the demand for trucking services to haul products to ports.
The Journal also said that a weak dollar can help short-term economic growth as companies make more sales and gain market share, thereby increasing their revenue. Increased revenue can lead to more capital investment and more need for trucking shipments.
One pitfall some observers see in the weakening of the dollar is the possibility of inflation and higher interest rates, the Journal said. If interest rates increase they may choke off orders for goods and pinch trucking companies dependent on those shipments. Transport Topics
Initial Jobless Claims Drop 9,000 Last Week
A report by the U.S. Department of Labor showed that 9,000 fewer people applied for unemployment benefits last week than the week before. During the week ended May 18, initial jobless claims were 416,000 – their lowest point in two months.Lower rates of unemployment are good for trucking because they increase consumer confidence and can boost spending.
The four-week moving average, a device used to remove some of the volatility from the week-to-week report, fell by 2,750 to 420,000 as a result of last week’s decline, Labor said. Transport Topics
Trailer Bridge Contends Nasdaq Delisting
Trailer Bridge Inc., which provides trucking and integrated marine freight services, is in danger of being delisted from Nasdaq because of its failure to comply with its requirements for listing, the company said in a press release Thursday.The Jacksonville, Fla.-based company could be delisted because it fell below the required minimum of $4 million net tangible assets, its market value of publicly held shares is less than $15 million and its bid price is below $3.
Trailer Bridge has requested a hearing before the Nasdaq Listing Qualifications Panel to review the standards they failed to meet through May 15, 2002.
If the company listing cannot remain, it may apply to be listed on the Nasdaq SmallCaps Market or to have its common stock traded on the OTC Bulletin Board’s electronic quotation system. Transport Topics
( for the full press release.)
Price of Crude Oil Rises Ahead of Holiday Weekend
Crude oil prices rose Thursday as U.S. distributors prepare for heavy travel during the Memorial Day holiday weekend, Bloomberg reported.Crude oil is distilled into gasoline and diesel fuel, so rising crude oil prices can mean increased prices at the pump in the near future.
Other factors pushing the price of oil up are the conflicts in Middle East, where a third of the world’s oil is produced, and in Kashmir, Bloomberg reported.
Although neither India nor Pakistan is a major oil producer, if the two go to war over the disputed region of Kashmir, it would increase oil consumption and force prices to rise, Bloomberg said.
The price of oil per barrel for July delivery in the U.S. rose as much as 33 cents to $26.70 in electronic trading on the New York Mercantile Exchange. Transport Topics
Velocity Changes Stock Ticker Symbol
Velocity Express Corp. said that effective Thursday, its trading symbol on Nasdaq would revert back to VEXP, from VEXPD.The Minneapolis-based delivery service company was forced to temporarily change its ticker symbol following a five-for-one reverse stock split.
Velocity Express, formerly known as United Shipping & Technology, is ranked No. 43 on the 2000-2001 Transport Topics 100 list of the largest U.S. trucking companies. Transport Topics
( for the full press release.)
AFL-CIO Approves Dues Hike Despite Opposition
Despite opposition from the Teamsters, labor leaders voted Wednesday to increase union dues to build the AFL-CIO's political war chest for November's elections and the next presidential race, the Associated Press reported.The Teamsters union, which includes thousands of truck drivers, and the International Association of Machinists argued the money will be spent to help Democrats regardless of their track record.
Although the Teamsters supported Al Gore over President Bush in 2000, the union backed Bush's energy plan and has endorsed GOP incumbent George Pataki in New York's gubernatorial race.
The AFL-CIO is planning to add $25 million over the next four years to its war chest by increasing its dues per member by 4 cents per month through July 2005.
he AP said the AFL-CIO fell short of the $33 million it sought to raise for political action during the current two-year political cycle. Transport Topics
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Section of I-55 to Close Near Chicago
A 16-mile section of Interstate 55 outside of Chicago will be partially closed starting the night of May 28 as a resurfacing project begins, the Illinois Department of Transportation said Wednesday.I-55 is a major truck route between Chicago and New Orleans. The stretch of road is between Willow Springs Road in Countryside and IL 126 in Plainsfield, just southwest of Chicago.
The first phase of the project is expected to conclude Aug. 29 and the second phase, which doesn't start until June 16, will end on Aug. 31. Lane and ramp closures will occur between 7 p.m. and 6 a.m. on weekdays and until noon on weekends.
IDOT said most of the work will be done overnight in an attempt to limit delays for drivers. Transport Topics
( for the full press release.)