ArcBest again trades volume for yield in Q2

ArcBest continues to trade volume for higher yields. The company’s May update showed tonnage was off 22% year over year (y/y) for a second consecutive month while yield increased 26% y/y in the month (after it was up 24.6% y/y in April).

Lower shipment weights, down 16% y/y in April and 19% y/y in May, are positively impacting the yield metrics (revenue per hundredweight). Higher yields were also driven by price increases on transactional shipments and a favorable mix shift toward contractual...

XPO seeing higher volumes, ‘above-market yield growth’ in Q2

Less-than-truckload carrier XPO’s May update showed it continued to grow tonnage while taking yields meaningfully higher.

Tonnage in May was up 2.4% year over year (y/y), which followed a 3.1% increase in April. May’s tonnage growth was the combination of a 3.8% increase in shipments partially offset by a 1.4% decline in weight per shipment.

XPO (NYSE: XPO) also reported yield (excluding fuel surcharge) in the first two months of the second quarter increased by an undisclosed amount from the...

Old Dominion’s tonnage turns positive in Q2

Old Dominion Freight Line’s tonnage metrics have turned positive for the first time in nearly two years. The less-than-truckload carrier’s second-quarter update shows improvement from the first quarter but a slight deceleration in growth rates from April to May.

The company announced Wednesday that revenue per day was 5.6% higher year over year (y/y) in May, better than the 1.2% growth rate in the first quarter but slightly below a 6.3% increase in April. May’s tonnage was up 1.5% y/y as...

Transports-only hedge fund manager hopeful despite ‘perfect negative storm’

Institutional investor Seth Holm said he’s upbeat on transportation stocks long term but noted the sector is in a “perfect negative storm,” with volumes under pressure, a collapse in pricing and roughly 50% inflation across most cost buckets. His comments were part of a fireside chat with Craig Fuller, FreightWaves founder and CEO, at Future of Supply Chain in Atlanta on Wednesday.

“I’m very, very positive … I think if you invest in anything in surface transportation, you’re going to make a lot...

Saia’s stock pops on May’s volume acceleration

Less-than-truckload carrier Saia saw an acceleration in daily shipment counts through the first two months of the second quarter. After the company logged a 15.7% year-over-year (y/y) increase in shipments during the first quarter, a Tuesday midquarter report showed the carrier’s shipments finished April 18% higher y/y and were up 18.6% y/y in May.

Saia (NASDAQ: SAIA) and other national LTL carriers continue to benefit from the freight left behind following Yellow Corp.’s (OTC: YELLQ) shutdown...

Higher ocean volumes propel Descartes’ Q1

Supply chain software provider Descartes said demand from its customer base of logistics service providers improved as its fiscal first quarter progressed.

The Canada-based company said international ocean container shipments are strengthening and benefiting from higher pricing due to disruptions in the Red Sea and Panama Canal. It expects the higher ocean shipments to eventually bleed through and result in higher domestic truck volumes.

Descartes (NASDAQ: DSGX) reported earnings per share of 40...

RXO joins logistics companies facing ratings agency cut

Ratings agencies now have taken a scalpel to three logistics companies in the past two weeks, with a debt downgrade of 3PL RXO by S&P Global Ratings joining similar actions impacting C.H. Robinson (NASDAQ: CHRW) and Forward Air (NASDAQ: FWRD).

It’s been 11 months since S&P Global Ratings gave RXO (NYSE: RXO) a stable outlook while maintaining its BB+ rating,  moving it down from positive. That BB+ rating is under the cutoff for an investment-grade debt offering. The outlook remains stable,...

Numbers at major truck lender BMO show worsening credit conditions

Further credit deterioration in trucking is evident in the quarterly earnings report of Canada’s BMO bank.

BMO (NYSE: BMO), the former Bank of Montreal, is one of the largest lenders to the trucking industry. Its transportation unit, purchased from GE Capital in 2015, has a customer base believed to be in the tens of thousands. Roughly 90% of its transportation sector is reportedly truck financing.

Provisions for credit losses at BMO in the quarter ended April 30 climbed to CA$56 million (U.S....

Moody’s, Fitch downgrade Forward Air debt; stock decline now above 90%

Its stock having declined nearly 91% since the end of July, Forward Air now has been hit with two more downgrades of its debt rating.

Moody’s Ratings last week downgraded the ratings of ClueOpCo, a wholly owned subsidiary of Forward Air that was created following the so-far-disastrous acquisition of Omni Logistics last year. The Moody’s (NYSE: MCO) action took down the corporate family rating of ClueOpCo to B2 from Ba3. That is a decline of two steps in one action, when a one-step increase or...

For the first time in years, C.H. Robinson’s debt rating is downgraded by S&P Global

C.H. Robinson has had its credit rating downgraded for the first time in at least six years, but its latest rating of BBB, down from BBB+, does keep the 3PL as an investment-grade credit rating.

The downgrade comes just slightly less than one year after S&P reduced the outlook on C.H. Robinson (NASDAQ: CHRW) to negative from stable while affirming its BBB+ rating. A move to a negative outlook usually ends either with a downgrade (possibly many months later, as in the case of C.H. Robinson) or a...

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