Talking Transports

Freight brokers’ increased penetration of the trucking market and a surge in small-business loans during the pandemic have contributed to the stubbornly slow pace of capacity exiting the market and are keeping spot rates from moving meaningfully higher. Truckload margins have been under pressure from rising costs and depressed rates. In this Talking Transports podcast, Craig Fuller, FreightWaves founder and chief executive officer, joins Lee Klaskow, Bloomberg Intelligence’s senior transportation and logistics analyst, to share his insights about the state of the North American trucking market and the future of the industry. Fuller also speaks about the feasibility of electric and autonomous trucks technologies as well as his love for cab-over designs. See omnystudio.com/listener for privacy information.

Increased penetration of online retail sales and global economic growth set up a strong backdrop for long-term volume growth for DHL’s eCommerce division, which provides domestic parcel-delivery services. In this episode of Bloomberg Intelligence’s Talking Transports podcast, Pablo Ciano, DHL Group’s board member and the eCommerce’s division CEO, joins Lee Klaskow, BI senior transportation and logistics analyst, to talk about how his organization will outpace global growth by 100-200 bps and its plans to improve operating margins back toward 5-7%. Ciano also discusses the upcoming peak season, consumer sentiment, M&A and how technology investments are fueling productivity gains. The eCommerce division accounts for about 8% of DHL Group’s revenue and 5% of Ebit. See omnystudio.com/listener for privacy information.

The global shipping industry has a long history of boom-and-bust cycles, which make SFL stand out for its ability to pay dividends every quarter for the past 20 years, says CEO Ole Hjertaker. In this Talking Transports podcast Hjertaker joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his outlook for shipping subsectors including containers, tankers, dry bulk and car carriers as well as for jack-up drilling rigs. SFL’s model of owning maritime assets and chartering them via long-term contracts has created a stable business that’s focused on returning capital to investors. Hjertaker also talks about how the company is navigating new emission regulations facing the global shipping industry and the process of buying these expensive maritime assets.See omnystudio.com/listener for privacy information.

Spot trucking prices are finding a new equilibrium following the unprecedented strong conditions created during the pandemic. The spot market is critical because it provides a window into the health of the economy and is a leading indicator for the contract market, where so many large public carriers predominately operate. In this Talking Transports podcast, Brent Hutto, Truckstop’s chief relationship officer, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his insights into the spot truckload market and what’s ahead for the industry. They also discuss the recent results from the latest Bloomberg Intelligence/Truckstop truckload and broker surveys, as well as the impact of regulations on the industry and what he does for fun outside of raising his six children.See omnystudio.com/listener for privacy information.

The trucking industry is facing a barrage of regulations aimed at reducing greenhouse gases and nitrogen oxides. Trucks that can meet the EPA’s 2027 emission rules could come with a price tag of up to $30,000 more than traditional diesel engines. The presidential election may dictate the timing and approach to how the trucking industry will become greener. In this Talking Transports podcast, Laura Perrotta, president of the American Truck Dealers, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share her insights into how truck dealers are navigating these challenges. Perrotta also talks about what California’s stricter emissions rules could mean for the industry, as well as pre-buying expectations, the CDA cyberattack and the used market.See omnystudio.com/listener for privacy information.

Freight insurance has become more important for shippers given increased geopolitical, environmental, economic and emerging risks facing supply chains. In this Talking Transports podcast, Shannon Schmidt, Nacora International Insurance Brokers’ president of North America, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share her insights on an often overlooked part of international trade. The global marine cargo insurance market is expected to grow at a compounded annual growth rate of 5.9% to $34 billion between 2024-32, according to Astute Analytica. Schmidt breaks down the insurance implications of the crisis in the Red Sea and the collapse of Baltimore’s Frances Scott Key Bridge in March. Nacora is a division of freight forwarder Kuehne + Nagel.See omnystudio.com/listener for privacy information.

Product tankers are currently at the beginning of a multiyear rate cycle as a result of a lack of new vessels coming on line and an outlook for demand growth. Pricing has gotten a boost from longer ton-miles created by the crisis in the Red Sea and Russia’s war in Ukraine. In this Talking Transports podcast, Mikael Skov, Hafnia’s co-founder and CEO, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his insights on product tanker markets. Skov also talks about how the company is navigating new emissions regulations facing the global shipping industry, as well Hafnia’s fleet, use of cash, demand trends, vessel prices, its use of cash and how his mom nudged him into a successful career in shipping.See omnystudio.com/listener for privacy information.

Second-quarter earnings reports could show that the worst is behind freight transportation and logistics companies that may see muted progress heading into 2H. In this episode of Bloomberg Intelligence’s Talking Transports podcast, Evercore ISI’s senior managing director and surface and marine transportation equity analyst Jon Chappell joins Lee Klaskow, BI senior transportation and logistics analyst, to share his thoughts on what investors could expect from quarterly reports and for the rest of the year. Market disruptions like the Red Sea crisis and failure of Yellow have benefited tanker and less-than-truckload companies, which has added to his positive pricing thesis. He also talks about growth prospects for intermodal, nearshoring and some of his favorite names in his coverage universe.See omnystudio.com/listener for privacy information.

Ryder System has its sights on a new long-term return-on-equity target in the low-20% range, up from its previously obtained goal in the high teens. Improved returns will be driven by high-single-digit revenue growth coupled with productivity gains. Ryder has plenty of runway for organic growth, given the outsourcing opportunities in the markets it serves. In this Talking Transports podcast, Robert Sanchez, Ryder System’s chairman and CEO, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to discuss some of the key takeaways from its recent investor day and how technology investments are optimizing transportation networks and providing better client interactions. Sanchez also talks about the company’s sustainability initiatives, autonomous trucking and some recent acquisitions. He shares how he got into transportation, Miami Hurricanes football and one of his favorite founding fathers.See omnystudio.com/listener for privacy information.

 The supply-chain dislocations created by the pandemic thrusted logistics into everyday news and conversations. This increased visibility has attracted more students to supply-chain and logistics programs at universities across the country. In this Talking Transports podcast, Terry Esper, Ph.D. and full professor at the The Ohio State University’s Fisher College of Business, joins Lee Klaskow, Bloomberg Intelligence’s senior transportation & logistics analyst, to discuss the trends facing the freight markets in and outside the classroom. Dr. Esper also talks about artificial intelligence and other technology-driven productivity tools, decarbonization and his love for bourbon, football and Detroit. See omnystudio.com/listener for privacy information.