Talking Transports

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.

PAM Transportation Services is well positioned for when the North American truckload rate cycle begins to turn, according to company President and CEO Joe Vitiritto. In this Talking Transports podcast episode, Vitiritto joins Bloomberg Intelligence Senior Transportation & Logistics Analyst Lee Klaskow to discuss the outlook for truckload rates and demand. The proliferation of brokers, private fleet growth and excess capacity at for-hire carriers have created slack capacity that has been slower to exit during this rate cycle, keeping rates lower for longer. Rates may gradually improve next year on demand growth and more higher-cost capacity leaving the market. Vitiritto also discusses how the company intends to grow organically and through acquisitions.See omnystudio.com/listener for privacy information.

Canadian National should generate strong incremental margins once volume growth returns, now that its operations are optimized following its pivot back to scheduled railroading, according to the company's president and CEO, Tracy Robinson. In this Talking Transports podcast episode, Robinson joins Bloomberg Intelligence Senior Analyst Lee Klaskow to discuss how the railroad is poised for growth and set to remain on track to reach its 2024-26 EPS target. The focus on running a scheduled network should improve service and safety metrics as well as productivity and margins, while positioning CN for growth. Robinson also discusses technology, regulations and where growth will come from. This episode was originally released on Nov. 16.See omnystudio.com/listener for privacy information.

Shippers can lower costs, increase productivity and provide a better customer experience by outsourcing warehousing and distribution functions, according to Neil Shelton, GXO's chief strategy officer. In this Talking Transports podcast episode, Shelton joins Bloomberg Intelligence Senior Analyst Lee Klaskow to discuss these benefits, in addition to how automation can fuel improved order-fulfillment accuracy and free up working capital for shippers. GXO stands to benefit from secular growth opportunities from outsourcing and reverse logistics, which has created a strong pipeline of business for the contract logistics provider. This episode was originally released on Oct. 24, 2023. See omnystudio.com/listener for privacy information.