News Briefs - Nov. 20
The Latest Headlines:
- Volvo Rolls Out Truck Integrated With EPA-Approved Engine
- Hub Group to Stay Independent
- ABF's Stubblefield: Without CF's Closure, Business Would Be Bad
- Union Sues Paccar Over Tenn. Factory Lockout
- Housing Starts Drop More Than Expected
- Union Official Says Ports Deal Will Be Finished by '03
- Crude Price Rises as OPEC Seeks to Halt Overproduction
- Hub Group to Stay Independent
Volvo Rolls Out Truck Integrated With EPA-Approved Engine
Volvo Trucks North America said Wednesday that the first of its new VN tractors left its plant in Dublin, Va.The VN tractor was first introduced in August, and fully integrates a low-emissions, Environmental Protecion Agency regulation-compliant diesel engine into the design and construction, the company said.
Regular production of the VN began on Nov. 6 and Volvo said in a release it has received orders for 3,400 trucks since its August debut.
Hub Group to Stay Independent
Third-party logistics provider Hub Group Inc. said Tuesday that though it has received several offers to acquire all of its outstanding stock, the Yeager family will not pursue any proposal.The Yeager family currently owns 69% of the voting stock of the Lombard, Ill.-based firm.
"The proposals that we received for the company are not sufficient to support a sale at this time," said Phillip C. Yeager chairman. "We firmly believe that Hub Group has great potential as an independent, publicly-held entity." Transport Topics
( for the full press release.)
ABF's Stubblefield: Without CF's Closure, Business Would Be Bad
Business would be down at ABF Freight System Inc. this quarter were it not for $150 million in annualized revenue from customers that previously used now bankrupt Consolidated Freightways for less-than-truckload moves, retiring ABF Freight System Inc. President David Stubblefield said in a farewell address to the media.ABF is one of three major, unionized, national LTL carriers and LTL business is often considered an indicator of economic activity.
"The economy is softer now that it was in June or July," Stubblefield said at a reception during the National Industrial Transportation League's annual conference in Anaheim, Calif., Nov. 16-19.
But even with the CF business, ABF is not stretched for equipment to meet customer needs, he said. Eric Kulisch
Union Sues Paccar Over Tenn. Factory Lockout
Paccar Inc., the world's third-largest truckmaker, was sued by the United Auto Workers for about $3.5 million over a lockout at a plant in Tennessee, Bloomberg News reported Tuesday.According to the suit, the Bellevue, Wash.-based company violated U.S. labor law by announcing layoffs of 500 workers at its Madison, Tenn. facility on Aug. 26, then locking workers out on Sept. 3, Bloomberg said. U.S. law requires that companies provide 60 days' notice of layoffs and pay employees during that time.
Bloomberg said that a company spokesman had no comment on the suit, but did say the company hopes to get a contract deal done with the union soon. The two sides will resume negotiations Friday for the first time since Sept. 20. Transport Topics
Housing Starts Drop More Than Expected
The number of new, homes started in the United States fell 11.4% to an annual rate of 1.603 million units in October, the Commerce Department reported.New home construction is an important indicator for trucking, because trucking plays a significant role in delivering materials to construction sites and in delivering household items to finished homes.
Starts of new single-family homes fell 7% to an annual rate of 1.35 million units, while starts of new apartments and other multi-family homes declined 29.3% to a pace of 253,000 a year.
Bloomberg News reported that the consensus estimate for housing starts was a slight decline to a rate of 1.715 million.
Analysts told Bloomberg that the decline didn't take away from the strong housing market, which consistently has been one of the bright spots in the weak economy. Transport Topics
Union Official Says Ports Deal Will Be Finished by '03
An executive with the International Longshore and Warehouse Union said that he expects that the union will reach a deal with the Pacific Maritime Association by the end of the year, the Journal of Commerce reported Tuesday.The ILWU and PMA have been engaged in a rancorous labor dispute, culminating in a 10-day lockout in October. Currently, the union is back to work under a government-enforced 80-day cooling-off period.
The legislative director of the ILWU, Lindsay McLaughlin, told the National Industrial Transportation League that the two sides will reach a deal before the end of the cooling-off period, the Journal of Commerce reported.
McLaughlin said that the recently announced agreement on technology was a major step for the two sides and could make getting a deal done soon easier. Transport Topics
Crude Price Rises as OPEC Seeks to Halt Overproduction
The price of crude oil jumped 30 cents a barrel as expectation grew that the Organization of Petroleum Exporting Countries would use its upcoming meeting to crack down on overproduction, Bloomberg reported.Crude oil is often distilled down into motor fuels like gasoline and diesel – changes in its price are often passed to consumers at the pump.
Traders said that they expect OPEC to discuss limiting overproduction and possible changes in its quotas at its Dec. 12 meeting, Bloomberg reported.
In morning trading on the New York Mercantile Exchange, crude oil prices rose 1.1%, or about 30 cents to $26.72 a barrel. Transport Topics