Susquehanna Financial Group

Many headwinds faced rails in Q3 but future could be brighter: Analyst

Third-quarter results might still be under pressure from lower rail volumes and higher operational costs, but investors should keep their eyes on the freight rail industry longer term, according to Susequehanna transportation analyst Bascome Majors.

“We’re comfortable with our yet-again-reduced 2024 forecasts for rails (EPS 3% to 9% below consensus). After more than a year on the sidelines, we’re actively looking for mid-term re-entry points on any short-term stumbles,” Majors said in a Tuesday...

https://www.freightwaves.com/news/many-headwinds-faced-rails-in-q3-but-future-could-be-brighter-analyst

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

Q1 rail earnings preview: Service metrics, headcount, macro uncertainties

A photograph of a freight train traveling by a rail crossing. A guard rail on the road is down to protect motorists.

As the Class I railroads gear up for earnings season this week and next, commentary about the first quarter of 2022 will likely include discussion about how the railroads’ recent hiring initiatives will translate into improving service metrics in the second half of the year.

However, a potential softening in freight transportation demand plus higher inflation rates are market factors that could weigh on the second half of 2022. Meanwhile, the railroads also face potential regulatory scrutiny...

https://www.freightwaves.com/news/q1-rail-earnings-preview-service-metrics-headcount-macro-uncertainties

UPS to boost weekend ground deliveries

UPS Inc. (NYSE:UPS) said Tuesday that it plans to expand its weekend ground residential delivery operations, a strategy designed to build greater traffic density across its daily delivery network and to close the weekend delivery gap with archrival FedEx Corp. (NYSE:FDX).

UPS CEO Carol Tomé told analysts following the release of the company’s first-quarter results that by October it will reach 90% of the U.S. population with its Saturday ground deliveries to residences. Currently, that number...

https://www.freightwaves.com/news/ups-to-boost-weekend-ground-deliveries

US rail traffic jumps 25% year-over-year but is flat from prior week

A photograph of a train carrying intermodal trailers.

Weekly U.S. rail volumes rose nearly 25% last week, although some commodities may be affected by uneven year-over-year comparisons because the start of the COVID-19 pandemic last year caused widespread shutdowns and affected rail traffic.

U.S. rail volumes totaled 513,724 carloads and intermodal units for the week ending Saturday, which is 24.5% higher than the same period in 2020, according to the Association of American Railroads (AAR).

Carload volumes were up 17.4%, at 233,300 carloads, while...

https://s29755.pcdn.co/news/us-rail-traffic-jumps-25-year-over-year-but-is-flat-from-prior-week

5 Wall Street impressions about proposed CP-KCS merger

A photograph of a Kansas City Southern locomotive.

Canadian Pacific (NYSE: CP) announced plans to acquire Kansas City Southern (NYSE: KSU) for $29 billion on Sunday morning. Here are five initial impressions from Wall Street transportation analysts about this proposed transaction.

Wall Street likes the deal

The merger of CP and Kansas City Southern (KCS) would be combining two of the smallest Class I railroads. It would also be integrating two railroads that are striving to reach an operating ratio (OR) in the mid-50s. OR, represented in a...

https://s29755.pcdn.co/news/5-wall-street-impressions-about-proposed-cp-kcs-merger

Rail Roundup: FreightCar America names new CFO; US rail volumes flat

A photograph of intermodal containers parked at a rail yard.FreightCar America names new CFO

Railcar manufacturer FreightCar America (NASDAQ: RAIL) has named Terence R. “Terry” Rogers CFO, effective last Monday. Rogers has been serving as interim CFO since January.

As CFO, Rogers will lead FreightCar America’s finance activities, including its business planning, budgeting, forecasting, treasury and information technology, the company said.

President and Chief Executive Officer Jim Meyer commented in a release, “We are thrilled to have a person of Terry’s...

https://s29755.pcdn.co/news/rail-roundup:-freightcar-america-names-new-cfo;-us-rail-volumes-flat

FreightTech takes center stage at FreightWaves’ free FreightTech Venture Summit

Just a few short years ago, FreightTech was a relatively unknown term. It is not anymore and venture capitalists and investors have taken notice, flocking to the space in recent years as more and more technology startups look to disrupt the freight space. In 2019, investment in supply chain technology surpassed $10.4 billion, according to Pitchbook.

Since its launch in 2017, FreightWaves has been at the forefront of the FreightTech space. That investment is now going a step further, giving...

https://s29755.pcdn.co/news/freighttech-takes-center-stage-at-freightwaves-free-freighttech-venture-summit