Stifel

Logistics M&A slower but opportunities still there

NEW YORK — Even in the midst of an almost historic freight recession, in which it seems almost every part of the supply chain — truckload, warehouses, brokerages — has taken a hit in valuations, deals did get done this year. 

Two recent confirmations of that beyond the usual anecdotal evidence: One, the monthly report of Logisyn Advisors reported 43 transactions in the logistics sector in November alone (down from 46 in August and apparently less than the number of deals in November 2022) and...

https://www.freightwaves.com/news/logistics-ma-slower-but-opportunities-still-there

Loaded and Rolling: J.B. Hunt and Wabash make a deal; Susquehanna trucking outlook

J.B. Hunt and Wabash cut multiyear trailer deal
(Photo: Jim Allen/FreightWaves)

Wabash and J.B. Hunt Transport have signed a multiyear deal that will supply J.B. Hunt with 15,000 trailers. The size and scope of the pact are significant, as the past two years saw pandemic-related supply chain disruptions throttle up new trailer orders, causing the average age of existing trailers to rise. Older trailers mean more maintenance costs. 

“The deal — the exact length was undisclosed — is significant,”...

https://www.freightwaves.com/news/loaded-and-rolling-jb-hunt-and-wabash-make-a-deal-susquehanna-trucking-outlook

FreightWaves SONAR data revealed global recession months before FedEx’s earnings

A container ship stacked with containers

In a note last Friday, September 16, J.P. Morgan reminded us that back in June it warned about a concerning drop in container volume out of China, based on FreightWaves SONAR Container Atlas data. 

Part of the J.P. Morgan note.

The firm titled its June 3 report “Watching the China Freight Wave,” which covered the slowdown in container markets and forewarned about a slowing U.S. domestic freight market.  

Using the same data, on June 7, FreightWaves wrote an article titled “U.S. import demand is...

https://www.freightwaves.com/news/freightwaves-sonar-data-revealed-global-recession-months-before-fedexs-earnings

IMF: Rising ocean shipping costs to bring wave of higher prices

Research from the International Monetary Fund substantiates the correlation between “volatile” global shipping costs and inflation. 

“Studying data from 143 countries over the past 30 years, we find that shipping costs are an important driver of inflation around the world: When freight rates double, inflation picks up by about 0.7 percentage point. Most importantly, the effects are quite persistent, peaking after a year and lasting up to 18 months. This implies that the increase in shipping...

https://www.freightwaves.com/news/imf-rising-ocean-shipping-costs-to-bring-wave-of-higher-prices

FMC onboard for Biden’s ocean carrier ‘crackdown’

Federal Maritime Commission Chairman Daniel Maffei has welcomed a White House executive order calling on the Justice Department to help the FMC investigate and potentially fine ocean carriers charging shippers unreasonable rates and fees.

President Joe Biden’s executive order, announced on Thursday, also urges the Surface Transportation Board to allow shippers to challenge inflated rates more easily when there’s no competition between routes.

“A lot of American companies rely on railroads to ship...

https://www.freightwaves.com/news/fmc-onboard-for-bidens-ocean-carrier-crackdown

3PL Summit: Freight cycle puts truck brokers in good spot — Great Quarter, Guys

INTERVIEW TOPIC:  Outlook for freight brokers

SPEAKER: Bruce Chan, vice president and senior analyst, Transportation & Logistics Equity Research Group at Stifel

BIO: Chan covers freight forwarding, airfreight, contract logistics, truck brokerage and asset-light trucking. He was named a 2018 Rising Star by Institutional Investor Magazine. Chan has a law degree from the University of Maryland.

TAKEAWAY: Freight brokers’ value proposition is becoming more evident in this period of record tight...

https://s29755.pcdn.co/news/3pl-summit-freight-cycle-puts-truck-brokers-in-good-spot-stifels-chan-says

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