TL volumes

Landstar says ‘muted peak season’ weighs on Q4 guidance

Landstar System pointed to the expectation of a “muted peak season” as the reason for its worse-than-expected fourth-quarter guidance. The Jacksonville, Florida-based freight broker reported third-quarter earnings per share of $1.41 after the market closed Tuesday. The result was 4 cents worse than the consensus estimate and at the low end its prior $1.35 to $1.55 guidance range.

A lower tax rate compared to the year-ago quarter was a 4-cent tailwind in the period.

Landstar’s (NASDAQ: LSTR)...

https://www.freightwaves.com/news/landstar-says-muted-peak-season-will-weigh-on-q4

U.S. Bank: Freight shipments and costs step higher in Q2

A yellow tractor pulling a white trailer on highway

Freight payments data released Wednesday showed a sequential uptick in trucking shipments during the second quarter, reversing the declining trend seen in the prior two quarters. Freight spending advanced again in the period as elevated fuel costs continue to push up all-in rates.

A national trucking index published by U.S. Bank (NYSE: USB) showed volumes were up 2.3% from the first quarter with spending up 3.3%. Shipments in the quarter were slightly higher than the historical average “as...

https://www.freightwaves.com/news/us-bank-freight-shipments-and-costs-step-higher-in-q2

Analysts all in on transportation stocks; transition to services spending no threat

Transport stocks looking up, according to analysts

A couple of bullish reports this week highlight reasons to favor transportation stocks moving forward. The outlooks call for favorable freight fundamentals around demand, utilization and pricing to remain in place for the foreseeable future.

Consumer demand not likely to wane anytime soon

UBS (NYSE: UBS) transportation analyst Tom Wadewitz said he sees a “perfect storm” for freight demand, pointing to tight capacity, inventory rebuilding and a steady stream of stimulus money. “The combination of...

https://www.freightwaves.com/news/analysts-lean-in-on-transport-stocks-spending-on-services-not-a-threat

February weather only temporary impediment to freight cycle: Cass

Cass data set to accelerate through second quarter

February data from Cass Information Systems (NASDAQ: CASS) shows the impact winter storms had on freight markets during the month.

February speed bump will give way to larger increases

The shipments subindex increased 4.1% year-over-year, up 1.8% sequentially. The year-over-year growth rate for the month was less than half that recorded in January. On a seasonally adjusted basis, the index came in 3.2% lower sequentially.

“This slowdown reflects both the short-term weather effects and likely...

https://s29755.pcdn.co/news/february-weather-only-temporary-impediment-to-freight-cycle-cass

Retail container imports ‘expected to grow dramatically’

Containers will continue to land at a high rate

Record retail sales and continued inventory restocking provide the backdrop for the National Retail Federation’s increased expectations for inbound containers. On Monday, the group raised its forecast for first-half 2021 twenty-foot equivalent units (TEUs) landing at major container ports in the U.S. to 23.3% year-over-year.

Final January numbers showed TEUs came in 13% higher year-over-year at 2.06 million, the busiest January in the dataset’s nearly 20-year history.

“NRF is forecasting what...

https://www.freightwaves.com/news/retail-container-imports-expected-to-grow-dramatically

U.S. Xpress sees current fundamentals lasting well into 2021

U.S. Xpress 2021 outlook calls for more of the same

U.S. Xpress’ (NYSE: USX) 2021 economic outlook, released Wednesday, sees many of the same fundamentals that were in place during the second half of 2020 sticking around through at least the third quarter.

“Freight markets (and the overall economy) have moved in a manner consistent with our expectations. Driver shortages, capacity crunches, and ample freight (driven by evolutions in buying habits) were the common themes of 2020. By and large, 2021 looks to offer more of the same.”

The Chattanooga,...

https://www.freightwaves.com/news/us-xpress-sees-current-fundamentals-lasting-well-into-2021

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

Cass sees freight trends accelerate sequentially in August

Unidentified truck on highway

Cass Information Systems’ (NASDAQ: CASS) August report showed further sequential gains in the freight markets with shipments increasing 8% and expenditures climbing 9.9% from July.

Data for the month echoes other recent bullish trends and commentary from the trucking sector, showing that April was the bottom for volumes with continual improvement in freight demand since. Cass’ expenditures index shows freight payments troughed in May, improving each month after.

“This supports what we have heard...

https://s29755.pcdn.co/news/cass-sees-freight-trends-accelerate-sequentially-in-august

Schneider eyes deployment of growing cash balance

Schneider truck on highway

On its second-quarter earnings call with analysts, members of truckload (TL) carrier Schneider National’s (NYSE: SNDR) management team said they expect TL volumes to be higher year-over-year in the third quarter.

Prior to the market open on Thursday, the Green Bay, Wisconsin-based company reported second-quarter 2020 adjusted earnings per share (EPS) of 26 cents, 7 cents better than consensus but 8 cents lower year-over-year.

Currently, the carrier is seeing daily freight tenders exceed available...

https://s29755.pcdn.co/news/schneider-discusses-deployment-of-growing-cash-balance

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