CHICAGO (Reuters) – Robust U.S. consumer and business demand plus strong growth in Asia drove a higher-than-expected quarterly profit at package delivery company United Parcel Service Inc (UPS.N: Quote, Profile, Research, Stock Buzz) and its top executive said that after a challenging holiday period last year the firm is ready for the 2014 peak season.
UPS, the world’s largest shipping company, and its main rival, FedEx Corp (FDX.N: Quote, Profile, Research, Stock Buzz), both considered U.S. economic bellwethers, are heading into their busiest season of the year as the U.S. holidays approach. Last year a last-minute surge in online consumer promotions caused many packages to remain undelivered on Christmas Eve.
CHICAGO, Oct 23 (Reuters) – Determined not to repeat a
holiday season that left millions of packages delivered too late
and customers seething, United Parcel Service Inc and
FedEx Corp are investing heavily in new infrastructure -
but the continued dynamic growth of e-commerce will test those
The world’s two largest shipping companies are building new
facilities, adding more temporary holiday workers and pushing
retailers to help them avoid a recurrence of a pre-Christmas
CHICAGO (Reuters) – The U.S. Department of Transportation has issued five “non-site-specific” special permits to companies for handling waste related to the Ebola virus that has killed one patient in the United States, triggering fear about the spread of the disease.
There has also been concern about waste related to Ebola, which causes fever, bleeding, vomiting and diarrhea and has killed nearly 4,900 people, most of them in West Africa. Two nurses who helped treat the U.S. patient in Dallas tested positive for the disease and underwent treatment.
CHICAGO, Oct 23 (Reuters) – The chief executive of No. 1
U.S. railroad Union Pacific Corp said on Thursday that he does
not think mergers of major railroads “make sense” because of the
regulatory hurdles they face and the service issues they create.
“The (service and regulatory challenges) add a whole layer
of concerns for me,” Jack Koraleski told analysts in a
conference call after the company reported a
higher-than-expected third-quarter profit and said it expected a
solid fourth quarter. “I’m really not a fan (of mergers), I
don’t think it’s a good solution.
CHICAGO, Oct 22 (Reuters) – Package delivery company FedEx
Corp on Wednesday forecast a record holiday season this
year, with 22.6 million shipments expected for its anticipated
peak day on Dec. 15.
The Memphis-based company said it looks to move more than
290 million packages between Black Friday, the day after the
U.S. Thanksgiving holiday that kicks off the holiday shopping
season, and Christmas Eve.
CHICAGO, Oct 22 (Reuters) – No. 4 U.S. railroad Norfolk
Southern Corp reported a higher quarterly profit on Wednesday as
the growing economy boosted freight volumes on its network, but
it fell short of Wall Street analyst forecasts.
“We remain focused on ensuring we can support continued
demand for freight rail transportation by hiring additional
employees, investing in new equipment, and completing capacity
projects,” chief executive Wick Moorman said in a statement.
CHICAGO (Reuters) – Ebola has moved to the front of campaign issues before U.S. November elections, as fear and criticism of the government’s response to cases of the virus in the United States opened a new line of Republican attacks against President Barack Obama and his fellow Democrats.
Republican Senate candidates have bashed Obama’s handling of Ebola, linking it to border security and calling for a travel ban from West African countries hardest hit by the virus.
TORONTO/CHICAGO, Oct 17 (Reuters) – Veteran railroad boss
Hunter Harrison has won over many critics since taking over as
chief executive of Canadian Pacific Railway, but he
still has unfinished business – creation of a consolidated North
American railway – and he is running out of time to do it.
That might explain why CP, Canada’s No. 2 railway with
extensive operations in the United States, and the No. 3 U.S.
railway, CSX Corp, have been talking about combining,
even though such a deal would face tough regulatory barriers and
CHICAGO (Reuters) – The head of a U.S. Senate subcommittee raised concerns in a letter on Thursday to the U.S. Attorney General and head of the top U.S. rail regulator about a potential merger between Canadian Pacific Railway Ltd and CSX Corp, and called on them both to fully review the antitrust implications of any such deal.
“Given recent concerns about shipping delays and ongoing concerns about anticompetitive conduct in the railroad industry, any further consolidation would prompt significant concern,” Senator Amy Klobuchar, a Democrat representing Minnesota, wrote to Eric Holder and Dan Elliott of the Surface Transportation Board (STB).
CHICAGO, Oct 15 (Reuters) – Further consolidation of major
U.S. railroads could lead to service disruptions rather than
improvements in U.S. rail freight congestion, the chief
executive of CSX Corp said in a conference call with analysts on
“We might actually see a step back in service,” Michael Ward
said when asked whether consolidation would improve rail