TL rates

2021 trucking outlook comes into focus

Analysts call their shots for trucking in 2021

Several analysts have published transportation outlook reports for 2021 that are calling for continued strength in the trucking markets. Some are expecting the favorable truckload fundamentals that were in place in the back half of 2020 to continue unchanged though 2021. However, others believe the TL trade has grown long in the tooth and are pivoting to a more meaningful industrial recovery, which supports an improving freight environment for less-than-truckload carriers and the railroads.

Poten...

https://s29755.pcdn.co/news/2021-trucking-outlook-comes-into-focus

Landstar eyes record in fourth quarter

Landstar trailer on highway

After posting a second-best third quarter, only to 2018, truck broker Landstar System Inc. (NASDAQ: LSTR) could be closing in on a new record in the fourth quarter.

On the company’s Thursday earnings call, management said the current truck market, highlighted by high demand and tight capacity, should continue through the quarter, noting that the company is operating at peak levels even though peak season hasn’t really kicked in yet.

The Jacksonville, Florida-based company reported third-quarter...

https://www.freightwaves.com/news/landstar-eyes-record-fourth-quarter

P.A.M. Transportation’s Q3 well ahead of forecasts

P.A.M. Transportation truck on highway

P.A.M. Transportation Services (NASDAQ: PTSI) reported a “marked improvement” during the third quarter as the truckload (TL) industry distanced itself from a second quarter that displayed steadily improving demand trends, albeit off of a low base, and incremental costs associated with COVID-19.

The Tontitown, Arkansas-based carrier reported net income of $6 million or $1.04 per share. Excluding losses from investments in equity securities, the carrier reported adjusted net income of $6.4...

https://s29755.pcdn.co/news/pam-transportations-q3-well-ahead-of-forecasts

Table set for 3Q truckload earnings blowout

Unidentified truck on highway

The rubber will soon meet the road for trucking companies. After a couple of months of improving data points, positive commentary from management and analysts raising their earnings expectations, the third-quarter earnings season kicks off later this week. Temperature-controlled truckload (TL) carrier Marten Transport (NASDAQ: MRTN) is first up with results on Thursday, followed by J.B. Hunt Transport Services (NASDAQ: JBHT) on Friday.

Favorable data points throughout the third quarter

After a...

https://s29755.pcdn.co/news/table-set-for-3q-truckload-earnings-blowout

Consensus for double-digit truckload rate increases forming

Unidentified truck on highway

The expectation for truckload (TL) contractual rates to increase by double digits in 2021 is growing. In a Wednesday note to clients, UBS (NYSE: UBS) transportation equities analyst Tom Wadewitz outlined the fundamentals supporting this projection.

“The current extreme tightness in the TL spot market plus a constructive outlook on freight point to double-digit rate increases in 2021,” he concluded.

Wadewitz said recent spot market metrics “show a market that remains on a trend of further...

https://www.freightwaves.com/news/consensus-for-double-digit-truckload-rate-increases-forming

Werner model stands up during downturn

Werner truck on highway

“Encouraging conversations with customers” was one of the highlights from Werner Enterprises’ (NASDAQ: WERN) earnings call with analysts Wednesday evening. Werner President and CEO Derek Leathers said demand is strong throughout the country, particularly in the West, as truck supply is tight.

The company reported adjusted earnings per share (EPS) of 62 cents for the second quarter, significantly better than the 40-cents-per-share consensus estimate.

The Omaha, Nebraska-based truckload (TL)...

https://s29755.pcdn.co/news/werner-model-stands-up-during-downturn

Landstar turning the corner, guidance reinstated

Landstar truck on highway

Improved trucking demand and spot rates should begin to bleed into Jacksonville-based freight broker Landstar System’s (NASDAQ: LSTR) financial results more meaningfully in the third quarter. The company appears to be turning the corner from the depths created in the early days of COVID-19-related lockdowns.

That was the tone of the company’s second quarter earnings call held with analysts on Thursday, July 23.

The company’s third quarter outlook calls for revenue to be in the range of $885...

https://s29755.pcdn.co/news/landstar-turning-the-corner,-guidance-reinstated

Wolfe Research conference focuses on a truckload restart

unidentified truck on highway

Trucking executives were on hand on May 19 to discuss freight markets at the 13th Annual Wolfe Research Global Transportation & Industrials Conference. The panel format covered topics like demand, pricing and a potential restart.

Overview of freight trends

U.S. Xpress’ (NYSE: USX) President and CEO Eric Fuller said the company continues to see consistent volumes as the bulk of the carrier’s freight comes from grocery, discount retail and home improvement stores. In the company’s first quarter...

https://s29755.pcdn.co/news/wolfe-research-conference-focuses-on-a-truckload-restart

‘Worst’ market in 47 years as restructuring at Covenant continues

Covenant truck on highway

Covenant Transportation Group (NASDAQ: CVTI) sees progress on its strategic plan, which is centered on replacing poorly performing freight, shuttering terminals and trimming its asset-based fleet.  

The Chattanooga, Tennessee-based truckload (TL) carrier reported a first quarter adjusted net loss of $1.7 million, $0.09 per share, a penny ahead of the consensus estimate.

Part of Covenant’s organizational refocus is to better allocate capital to higher margin offerings like contract logistics and...

https://s29755.pcdn.co/news/worst-market-in-47-years-as-restructuring-at-covenant-continues

USA Truck sees green shoots amid uncertainty; shares surge

USA Truck

On its earnings conference call with analysts, truckload (TL) carrier USA Truck’s (NASDAQ: USAK) management team said that they are hearing positive feedback from customers regarding a resumption in activity.

They said that more than 80% of the company’s revenue comes from customers that have been deemed “essential” and that those customers are still shipping freight at pre-COVID-19 levels. Further, some nationwide retailers are starting up large inventory pushes and the company is hearing some...

https://s29755.pcdn.co/news/usa-truck-first-quarter-call

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