Economy

Teamsters applaud NAFTA progress; talks extended

WASHINGTON, D.C. - Policy teams representing the Teamsters Union from the United States and Canada on hand during the fourth round of NAFTA renegotiations this week are applauding the decision to fix the NAFTA cross-border trucking provision. The priorities of the union representing 1.4 million workers in North America, included highway safety, dairy supply management, and worker rights. Also on the table during this round were key discussions regarding the auto sector and manufacturing, and trade disputes. Teamsters general president Jim Hoffa said independent truckers and highway safety advocates will be pleased with the U.S. position on cross-border services. "The [United States Trade Representative's] approach is a creative solution to this long-standing controversy," he said. "I am satisfied that the U.S. position will permit Congress and the Dept. of Transportation to safeguard the livelihoods of American truck drivers and the personal safety of American families on U.S. highways under NAFTA 2.0." Teamsters Canada President François Laporte said Canadian Member of Parliament (MP) and Minister of Foreign Affairs, Chrystia Freeland, and Canadian negotiators have a progressive, pro-worker approach to the talks.

Bendix adds lines, jobs to Indiana facility

HUNTINGTON, IN - Bendix Commercial Vehicle systems is growing, announcing today that it will expand its Indiana manufacturing plant. The brake company is adding to its manufacturing capabilities and capacity with a USD $3.8 million capital investment in equipment to launch two new production lines. The lines, for making a portion of the company's vibration damper products, will be installed in existing space at the company's module center.

Time is the key to profitability

MISSISSAUGA, ON - Maximizing profitability in an industry where margins can be thin comes down to just one thing: time. Panelists at the Surface Transportation Summit had differing views about where fleets could make the best use of their time to convert it into dollars and cents, but both agreed that the old adage is true: time is money. "Time in trucking is a perishable commodity," said Brian Abel, a freight network engineer for KSM Transport Advisors. Abel and fellow panelist Mike Buck, president of MCB Management Consulting, spoke about different ways fleets could save time by being proactive and rooting out waste. Buck presented ways fleets could capitalize on being proactive about maintenance, creating a schedule that would mean less downtime, would control costs, and would maximize the efficiency of equipment.

Freight volumes, rates to rise in ’18: Analysts

MISSISSAUGA, ON - The coming year appears to hold the promise of a growing economy, tighter capacity, and ultimately higher rates for those who haul freight. "When you have the economy doing reasonably well, transportation tends to be generally picking up," said Carlos Gomes, senior economist - Scotiabank, in a presentation during the Surface Transportation Summit in Mississauga, Ontario. He projects economic growth of about 2% in 2018, compared to the 3% seen in 2017. "The Canadian economy recently has been very strong," agreed Walter Spracklin, equity research analyst - transportation sector at RBC Capital Markets. But where railways have enjoyed higher volumes against the backdrop of recent growth, trucks didn't fare quite as well. Railway volumes surged in part because of the demand for fracking sand, feeding into the 6.5% boost in overall freight that moved over iron highways, he said. Intermodal freight volumes are growing as well, although grain volumes are likely to drop when compared to the strong crops of 2016. Of the Canadian railways, CN is seeing capacity tighten, leading to congestion challenges and a projected boost in capital spending.

Celadon refinancing amid SEC investigation

INDIANAPOLIS, IL - The Celadon Group continues to restructure its assets in an attempt to create more liquidity, while it is being investigated by the Securities and Exchange Commission (SEC). The company, which owns Celadon Trucking and Celadon Logistics, as well as other subsidiaries, announced this morning that as part of the continuing implementation of its new strategic plan, it has refinanced its revolving credit and extended equipment leases that were maturing in 2018. Celadon's short-term revolving credit restructuring was done through Bank of America, and has a maturity date at the end of fiscal 2017. In addition it received US $22.6 million in equipment term loans secured by existing tractors and trailers used in their Hyndman subsidiary.

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