Supply chain hurdles not high enough to thwart J.B. Hunt’s Q3 beat

J.B. Hunt says extended peak season will boost Q1 results

Labor was the main talking point of J.B. Hunt Transport Services’ third-quarter earnings call with analysts Friday. Management from the Lowell, Arkansas-based transportation company said many of the nation’s supply chain obstacles are rooted in a shortage of workers.  

“The thing that has been the most difficult for us to get eyes on is customer warehouse labor,” said J.B. Hunt (NASDAQ: JBHT) intermodal head Darren Field. “That’s where there is a significant bottleneck — our customers’ ability...

No more room at the logistics warehouse inn, Prologis says

The world’s largest logistics warehouse operator said publicly on Friday what everyone has sensed and experienced for many months: There is no more space to be had, at least right now.

Prologis Inc. (NYSE:PLD) Chairman and CEO Hamid R. Moghadam said in the San Francisco-based third-quarter earnings report that “space in our markets is effectively sold out.” Given that Prologis operates 995 million square feet of logistics warehouse space in 19 countries, that represents a lot of markets.


J.B. Hunt rolls past Q3 expectations

Supply chain challenges continue to constrain freight volumes

J.B. Hunt Transport Services handily beat third-quarter estimates Friday, posting earnings per share of $1.88, 11 cents ahead of consensus expectations. Earnings per share were 27 cents higher than the second quarter and 70 cents better than the year-ago quarter.

Supply chains headwinds and network congestion on the railroads limited J.B. Hunt’s (NASDAQ: JBHT) intermodal volume growth. Loads were off 6% year-over-year but a 24% increase in revenue per load pushed the top line 17% higher in the...

P.A.M. Transportation: ‘Navigating the disruptions’ leads to a big Q3

PAM rides hot freight market to new records in Q3

P.A.M. Transportation Services reported Thursday after the market close that its third-quarter earnings more than tripled year-over-year. The Tontitown, Arkansas-based truckload carrier posted earnings per share of $1.87, compared to 52 cents per share in the same quarter of 2020, a period hindered by an industrial customer base that was still digging out from COVID-related shutdowns.

“We have had another record quarter for revenue and operating statistics at PAM. I am excited to see the work...

‘Unprecedented’ freight demand, labor challenges next year, Heartland Express says

Labor headwinds persist throughout the supply chain

Truckload carrier Heartland Express recorded its best operating ratio Thursday since it began acquiring other carriers in 2013. The third-quarter result was a 75% adjusted OR, 650 basis points better year-over-year and 470 bps better than the second quarter.

The North Liberty, Iowa-based carrier expects the current freight market to continue moving forward.

“Freight demand has continued to be strong and has reached unprecedented levels throughout the third quarter of 2021 and we expect these...

Delta Air Lines on pace for $1B in cargo revenue in 2021

A white and blue-tailed Delta Air Lines jet flying upwards, view from below.

Strong growth in cargo revenue during the third quarter helped Delta Air Lines turn its first profit since the start of the pandemic, but officials warned rising fuel costs could temporarily derail the momentum during the current period.

Delta (NYSE: DAL) reported cargo revenue jumped 39% over the 2019 level to $262 million even though the airline flew fewer than half its widebody fleet because COVID fears and restrictions have flattened international travel. Year-to-date cargo revenue is up 28%...

Container shipping’s ‘hockey stick’: Liner profits just keep on climbing

container shipping

A hockey-stick pattern starts with a low-level period — the blade — hits an inflection point, curves up, then heads sharply higher — the shaft. Newly released financial and operating reports for Q3 2021 by Matson (NYSE: MATX), Cosco and OOIL show container shipping in full-on hockey-stick mode.

Winners and losers

Pandemic restrictions and fiscal stimulus created winners and losers. On the losing end: companies that depend on people congregating in close quarters for business or pleasure. Think...

Hapag-Lloyd CEO: ‘We are probably in the peak of the problems’

Congested ports. Clogged supply chains. Capacity shortages.

Much of Hapag-Lloyd CEO Rolf Habben Jansen’s third-quarter overview had a familiar refrain, one likely to be heard again after the fourth quarter. 

But there were two topics Habben Jansen did not expound upon: the buckets of money the ocean carrier likely raked in during the third quarter and the recent investment in a German port.

Hapag-Lloyd is scheduled to release its third-quarter figures Nov. 12, and Habben Jansen did not open the...

Deutsche Post DHL posts strong interim quarterly results, will raise full-year outlook

German shipping and logistics giant Deutsche Post DHL posted strong preliminary third-quarter results on Thursday, and said it plans to raise its outlook for 2021 when it reports final quarterly figures early next month.

Earnings before interest and taxes (EBIT) rose 28% year-on-year to slightly more than US$2 billion, the Bonn-based company said. EBIT through the first nine months was $6.6 billion, which exceeded the company’s bottom-line results for all of 2020, the company said.

Deutsche Post...

Rate guidance should drive TL estimates higher, Morgan Stanley says

Knight-Swift's 2022 estimate too low?

In a Monday note to clients, Morgan Stanley analyst Ravi Shanker identified three key themes for the third-quarter earnings season, which begins Oct. 15 when J.B. Hunt reports. Hurricane Ida’s impact on the period, 2022 rate expectations and labor issues throughout peak season are the areas that will get the most attention, according to Shanker.

Hurricane unlikely to materially alter Q3 results

The report said only two companies, truckload carrier Werner Enterprises (NASDAQ: WERN) and Union...

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