Talking Transports

The worst appears to be behind transportation markets, and it’s just a matter of time before the freight recession gives way to growth. In this Talking Transports podcast, Deutsche Bank’s managing director in charge of transportation and shipping research, Amit Mehrotra, joins Bloomberg Intelligence senior transportation & logistics analyst Lee Klaskow to discuss the outlook for freight markets and which companies have secular tailwinds. He’s looking for companies with opportunities for outsized demand growth or turnaround-operations stories. J.B. Hunt, Saia, Norfolk Southern, Union Pacific and UPS are some of Mehrotra’s favorite freight stocks in 2024. He also talks about precision-schedule railroading, intermodal trends, the Red Sea crisis and share opportunities for less-than-truckload carriers.See omnystudio.com/listener for privacy information.

Less-than-truckload (LTL) pricing power and share gains from the demise of Yellow last year could position carriers for earnings growth and margin expansion in 2024. In this Talking Transports podcast, Saia President and CEO Fritz Holzgrefe joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the outlook for the LTL markets and the company’s expansion prospects. Improved service and increased reach has helped Saia offset inflationary pressures, with an 8.7% increase in contract renewals in 4Q. It plans to open 15-20 new terminals to better serve customers and provide a springboard for organic growth. Holzgrefe also talks about how the company is investing in facilities, tractors, trailers and technology to position for expansion.See omnystudio.com/listener for privacy information.

The worst appears behind the freight transportation market and there are early indications that 2024 will be better than last year. In this Talking Transports podcast, NFI Industries’ Vice Chairman and President Ike Brown joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss where we are in the freight cycle and how the company is positioned for growth in the dedicated, drayage, warehousing and brokerage segments. NFI’s businesses are facing rate and margin pressures given the weak freight backdrop. Being a private company allows NFI to invest through the cycle to be better positioned for when growth returns. Brown also talks about electric trucks, technology as a productivity tool, freight flows and what’s it like to manage a family operation with his two brothers and their kids.See omnystudio.com/listener for privacy information.

Freight transportation and logistics companies may face lower costs to attract and retain employees now that tighter labor conditions are loosening, which could help margins in 2024. In this Talking Transports podcast, CS Recruiting’s CEO and founder Charlie Saffro joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss how the labor markets have evolved since the pandemic and what companies can expect this year. The freight economy has been weakening since 2022, as illustrated by the closing of Yellow, a large less-than-truckload carrier, and technology-driven freight broker Convoy, last year. This is leading to weaker labor conditions relative to the national market. CS Recruiting is an executive search firm specializing in the supply-chain, logistics and transportation industries.See omnystudio.com/listener for privacy information.

US railroads may still be too short staffed to continue improving service, especially as volumes recover this year. In this Talking Transports podcast, the Surface Transportation Board (STB) Chairman Martin Oberman joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the state of the railroad industry from the regulator’s perspective. Lower head counts from the transition to precision-scheduled railroading and furloughs in 2020 contributed to poor service and supply-chain dislocations during the pandemic, Oberman says. Improving service is imperative for railroads to win share back from trucks and also for the overall health of the economy. Oberman also discusses reciprocal switching, industry consolidation and his pending retirement from the STB.See omnystudio.com/listener for privacy information.

Increased attacks on vessels in the Red Sea are among a number of dislocations and challenges facing the global marine-shipping industry in 2024. In this Talking Transports podcast, Scorpio Tankers President and Director Robert Bugbee joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the state of the product-tanker industry. Ton-miles were already rising amid supply-chain changes and the impact of the war in Ukraine and low water levels in the Panama Canal. A low order book bodes well for product-tanker rates into 2025, even after the near-term benefits from ships diverting around the Cape of Good Hope, Bugbee says. He also discusses Scorpio’s fleet, its use of cash and where ship technologies are changing to meet long-term emissions targets.See omnystudio.com/listener for privacy information.

Improving service levels will be critical for the railroad industry to win market share from other modes. In this Talking Transports podcast, Association of American Railroads (AAR) President and CEO Ian Jefferies joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss how the railroad industry is focused on providing a safer and more predictable service, which along with infrastructure investments could help capture share from trucking. This might help the industry surpass peak intermodal volume reached in 2018. Railroads have changed their approach to labor based on the lessons learned from the pandemic era. Jefferies also discusses how proposed regulations could affect railroads, and the benefits from precision scheduling.See omnystudio.com/listener for privacy information.

ArcBest celebrated its centennial this year, along with gains in the less-than-truckload market. In this Talking Transports podcast, ArcBest’s Chairman, President and CEO, Judy McReynolds joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss how its LTL business is mitigating softer demand with share gains following Yellow’s bankruptcy, which is also boosting prices for the service and providing opportunities to expand capacity. Growth may come organically and through acquisitions, which ArcBest has used to transform into an integrated-logistics company. McReynolds also talks about the path to 2025 targets, how ArcBest’s focus on productivity has helped offset inflation’s impact on margins and where electric vehicles may fit into its network.See omnystudio.com/listener for privacy information.

Werner Enterprises is facing better times now that the truckload market appears near equilibrium, says company President and CEO Derek Leathers. In this Talking Transports podcast, Leathers joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss peak season demand and what will drive spot and contract rates to inflect positively. In addition to cyclical trends, dedicated and cross-border demand will fuel organic earnings growth longer term. Leathers also talks about alternative routes to drive down emissions at Werner and the broader trucking market, given the current challenges associated with electric trucks. They also cover the driver market and inflationary pressures facing the transportation provider.See omnystudio.com/listener for privacy information.

Robust shipments from southern China are driving peak volume growth in the Americas that could reach 16% this year, according to DHL Express Americas’ CEO Mike Parra. In this Talking Transports podcast episode, Parra joins Bloomberg Intelligence senior analyst Lee Klaskow to discuss how peak season is shaping up. Gains are coming from deliveries of fashion, auto parts, technology and gaming products, and Parra sees long-term growth opportunities from a gradual move away from China into northern Mexico. Airfreight rates may find support at current levels until the Chinese New Year, which bodes well for earnings at DHL Express and competitors.See omnystudio.com/listener for privacy information.