P.M. Executive Briefing - Dec. 21
This Afternoon's Headlines:
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Trimac to Purchase DSI
Trimac Transportation of Canada has agreed to acquire DSI Transport of the United States for $68.3 million from United Transport America. Trimac explained that the purchase of DSI, which specializes in transporting chemicals, petroleum, and dry bulk products in the United States, Canada, and Mexico, will bolster its North American operations. Canada NewsWire (12/21/99)Shipping Hub Connects to Local Services
Irvine, Calif.-based SmartShip.com debuted their redesigned website on Monday that now allows users to arrange and pay for shipping services online.
Corporate interest will remain strong in package shipping even though consumer interest may waiver after the holidays are over, said Gene Saadi, president of Intershipper software manufacturer WorldWide Merchant. TechWeb (12/21/99) ; Krochmal, Mo
Nearly a Record Year Expected for Lift Trucks
Industrial Truck Association President Larry Borre announced in November at the ITA annual meeting that lift truck sales for 1999 are projected to nearly reach last year's record-breaking 186,000 sold.Borre, a vice president at the Barrett Division of Nissan Forklift of North America, said that the next two years will bring 5% or higher drop-offs in sales, followed by a resurgence in 2003. Jurgen Baumann spoke for the European contingent, announcing that strong sales in Germany, France, Italy, and Spain had resulted in a total of 215,000 units in Western Europe.
Masaru Hirako, speaking for the Japan Industrial Vehicles Association, acknowledged that lift truck sales in Japan had fallen to 40% below their highest level and that only 61,000 sales were expected for the year. Modern Materials Handling (12/31/99) P. 23
The Trucking and Transport Leasing (T&TL) Industry
Despite rising fuel costs, high driver turnover, and other troubles, Value Line analysts predict that the Less-Than-Truckload and Truckload sectors will continue to experience growth next year. Both industries are likely to be bolstered by more steady diesel costs and higher rates. Higher TL prices also are likely to be passed down to drivers' wages, which should result in a more stable labor market.In the LTL sector, the departure of three large companies will engender a calmer market that will enable most carriers to meet or beat their earnings projections, Value Line contends. Furthermore, this industry has not been as damaged by high fuel prices, although even higher prices could prove troublesome. LTL companies also could be hit by a drop in customer demand following the end of the Y2K rush.
Nevertheless, both industries' strong timelines ratings and good 3- to 5-year appreciation prospects should help keep them healthy, and encourage investors, thereby raising share values. Value Line Investment Survey (12/17/99) P. 275; Gelbtuch, Daniel M.
More Freight Forwarders Like Atlanta's Reach
Freight forwarding of imports and exports through Atlanta has increased in recent years. The proximity of the city to Savannah, Ga., and Charleston, S.C., and the global reach of Hartsfield Atlanta International Airport have created a high amount of business for the area's freight forwarding companies.This year, the renewed strength of Latin American and Asian markets – especially China – have caused a resurgence in importing and exporting through Atlanta. Last year, the local industry fared even better, based on Hartsfield's export-import tonnage statistics. According to Hartsfield's Alrene Barr, the airport processed 176,855 metric tons during the first three quarters of 1998, compared to 169,994 through the same period this year.
Concerns about the Year 2000 computer bug have had contradictory effects on different freight forwarders. Some have seen their business drop off due to fears about computer crashes, while others expect their business to decline once the new year arrives because worries about the fallout from the Y2K bug have encouraged demand for some goods among consumers. Atlanta Business Chronicle Online (12/20/99) ; Heffernan, Tony
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