TL spot rates

Truckload carriers’ forecasts cut heading into Q1 prints

Analysts are cutting earnings estimates for truckload companies heading into first-quarter reports. Acknowledging decent demand, analysts cited an overhang of truck capacity, which is constraining pricing and margins, as the reason for the latest round of revisions.

“We exit 1Q much like we entered it for truckload-related transports — feeling okay about volumes but bad about pricing and expecting downward EPS revisions for businesses that live on this annual pricing cycle,” Susquehanna...

https://www.freightwaves.com/news/truckload-carriers-forecasts-cut-heading-into-q1-prints

Werner chief says worst has likely passed

Following a very tough quarter, management from Werner Enterprises said Tuesday the worst of the freight downcycle has likely passed.

Werner’s (NASDAQ: WERN) outlook calls for a muted peak season with continued capacity attrition. Derek Leathers, the truckload carrier’s chairman and CEO, told investors at Deutsche Bank’s (NYSE: DB) transportation conference that he was surprised by the staying power spot-market-dependent carriers have had following the recent boom cycle.

“We underestimated the...

https://www.freightwaves.com/news/werner-chief-says-worst-has-passed

Freight shipments, costs sag in March

Freight shipments fell in March alongside transportation costs, according to payment services provider Cass Information Systems.

The shipments component of the Cass Freight Index declined 1% from February, 4% lower year over year (y/y). The expenditures subindex, which measures the total costs associated with shipping freight inclusive of fuel, fell 1.5% sequentially and 12% y/y.

“Soft real retail sales trends and ongoing destocking remain the primary headwinds to freight volumes, and sharp...

Weakness in freight shipments to linger, Cass says

Shipment data captured by payment services provider Cass Information Systems was only off modestly in February while freight costs plummeted on a tough comp.

The Cass Freight Index registered a 0.3% year-over-year (y/y) decline in shipments while the expenditures component of the data set, which measures the total costs associated with shipping freight, fell 9.7% y/y. The costs index was up against a tough comp (up 42.2% y/y in February 2022).

Shipments were up 3.8% from January after five months...

Total freight costs fall year over year in December for first time in 28 months

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Freight costs fell year over year (y/y) in December for the first time in 28 months, according to a...

Landstar model partially insulated from spot rate chaos

A blue rig hauling a Landstar trailer on the highway

Freight broker Landstar System achieved more financial records during the 2022 first quarter. Fresh highs in revenue, gross profit and net income were some of the highlights. The Jacksonville, Florida-based company reported earnings per share of $3.34 in the quarter, well ahead of the initial guidance range of $2.70 to $2.80 provided at the end of January.

President and CEO Jim Gattoni addressed recent weakness in the spot truckload market on a call with analysts Thursday. He said the declines...

https://www.freightwaves.com/news/landstar-earnings-q1-2022

Trucking: Cowen cuts estimates over ‘growing concerns for carriers’

Cowen lowers estimates ahead of Q1 earnings season

Incremental capacity, cooling demand and plummeting spot rates were the catalysts for another analyst to reel in expectations for trucking companies. On Thursday, Cowen’s Jason Seidl lowered earnings estimates for the truckload and less-than-truckload carriers he follows heading into the first-quarter earnings season, which starts Monday.

He advised clients to favor large-cap TL carriers versus the smaller carriers, downgrading Covenant Logistics Group (NASDAQ: CVLG) to “market perform” from...

https://www.freightwaves.com/news/trucking-cowen-cuts-estimates-over-growing-concerns-for-carriers

Cass reports ‘freight slowdown’ in March

Cass sees market cool in March

Freight shipments advanced in March but at a slower pace, according to data released Wednesday from Cass Information Systems. Freight expenditures, however, continued upward at a blistering pace.

The volumes subset of the Cass Freight Index increased just 0.6% year-over-year in March, 300 basis points slower than the growth rate logged a month ago. The dataset was also 1% lower than February when seasonally adjusted.

“While a few points of softness in Q1 were due to omicron-related absenteeism,...

https://www.freightwaves.com/news/cass-reports-freight-slowdown-in-march

Transport stocks fall out of favor as trucking market loosens

Schneider sees two-step rating downgrade at BofA.

Citing “waning demand and price dives,” Bank of America downgraded multiple transportation stocks on Friday. The ratings changes come as recent data points and commentary show trucking fundamentals have loosened following a year-and-a-half run of high freight demand accompanied by a lack of supply.

Tender rejections, a proxy for truck capacity tightness, remained very high entering the year but began declining notably in March, bucking normal seasonal trends. High-single-digit price inflation...

https://www.freightwaves.com/news/transport-stocks-fall-out-of-favor-as-trucking-market-loosens

Fuel price surge pushes cost of running empty higher

Truckers feeling pain at the pump

The cost of running empty just went up again. Nonrevenue, or empty miles, are nothing new. Carriers don’t get paid when they’re not loaded. While the cost bucket was up alongside fuel prices last year, it’s already up significantly in 2022.

Carriers have fuel surcharges (FSCs) in place to cover fluctuations in diesel prices for paid miles. However, they don’t cover deadhead, out-of-route miles or idle time. That means as fuel prices increase, so do the costs associated with running empty.

FSCs...

https://www.freightwaves.com/news/fuel-price-surge-pushes-cost-of-running-empty-higher

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