Truckload

Transformational deals in trucking during 2022

Deal flow in the transportation and logistics space slowed notably in 2022 as the economy cooled. Investors have become more risk averse, minimizing exposure to companies with less-proven track records, as interest rates have soared and credit markets have tightened.

Through November, transaction values in the industry totaled $52 billion across 380 deals compared with 600 deals for $181 billion in total during 2021, according to a report from global investment bank Houlihan Lokey (NYSE: HLI).

Eve...

Extreme volatility requires rethink of cost-plus pricing model, Transfix executive says

The near-unprecedented volatility in truckload pricing over the past 30 months requires shippers, carriers and brokers to rethink how rates should be structured to properly balance price and service, the chief product officer of technology provider Transfix said Wednesday.

Speaking at FreightWaves’ Domestic Supply Chain Summit, Tony Tzeng said the legacy cost-plus carrier pricing model — which shippers said made them feel like they were writing a blank check to their providers — no longer works...

https://www.freightwaves.com/news/extreme-volatility-requires-rethink-of-cost-plus-pricing-model-transfix-executive-says

Rail strike could push truckload rates to ‘levels we’ve never seen before’

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A rail strike could benefit the trucking market in the short term because it could provide a...

https://www.freightwaves.com/news/rail-strike-could-push-truckload-rates-to-levels-weve-never-seen-before

Truckload broker RXO ready to take on market alone

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At the beginning of the month the nation’s fourth-largest truckload broker stepped out on its own....

https://www.freightwaves.com/news/truck-broker-rxo-ready-to-take-on-market-alone

Exclusive: Transport executives pool funds to launch roadside health care network

A dozen executives, most from the transport industry, have pooled their funds to form a company that will build a health care network with facilities located in or adjacent to truck stops along the Interstate Highway System.

Interstate Health Systems said in a document reviewed by FreightWaves that it plans to open 40 to 60 locations over the next two years. The company, which was launched about eight months ago, wants to build more than 300 locations over the next six years, according to the...

https://www.freightwaves.com/news/exclusive-transport-executives-pool-funds-to-launch-roadside-health-care-network

Cass: ‘Considerable cost relief is now highly probable for 2023’

Shipments and freight costs were up again in October on a year-over-year (y/y) comparison, according to data from Cass Information Systems. However, the Monday report cautioned that a modest increase in volumes was due to a variety of circumstances that are unlikely to recur and that shipments will likely turn negative y/y by next month.

The shipments component of the Cass Freight Index increased 2.9% y/y during the month but fell 1.4% from September. The change marked the second straight...

https://www.freightwaves.com/news/cass-considerable-cost-relief-is-now-highly-probable-for-2023

Carriers punt on rest of 2022, hopeful for market normalization in ’23

Large carriers have given up on any material improvement in freight demand for the rest of the year. However, some are beginning to call for normal seasonality in 2023 with market tightening as soon as the middle of the year.

No surprise, there is no peak season

Appearing at Baird’s annual global industrial conference in Chicago, management from J.B. Hunt (NASDAQ: JBHT) said an inventory correction is continuing to play out throughout its customer book. An extant overhang of merchandise was...

https://www.freightwaves.com/news/carriers-punt-on-rest-of-2022-hopeful-for-market-normalization-in-23

C.H. Robinson lays off about 650 employees

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Editor’s note: This story has been updated to reflect the number of layoffs confirmed by the...

https://www.freightwaves.com/news/ch-robinson-to-lay-off-up-to-1200-employees-sources-say

Covenant Logistics announces leadership change

Within its third-quarter earnings report, Covenant Logistics (NASDAQ: CVLG) Thursday announced the next steps in an ongoing management transition.

Paul Bunn, who had been senior executive vice president and COO at the truckload carrier, will be promoted to president on Jan. 1, 2023, while continuing to hold his COO title. 

The management moves also involve President Joey Hogan transitioning to a part-time executive vice president role “focused on strategic planning, mentoring the leadership team,...

https://www.freightwaves.com/news/covenant-logistics-announces-leadership-change

Marten’s Q3 mixed compared to year ago but slows from Q2

Marten Transport’s earnings, the first out of the gate for truckload carriers, showed some signs of the market weakness that is evident in growing capacity and falling rates, but they weren’t quite flashing red.

Some operating comparisons to the third quarter of 2021 were flat to weaker depending on the segment. There also was some sequential data from the second quarter reflecting lower numbers, though in a business as seasonal as trucking, sequential numbers have their shortcomings. 

For the...

https://www.freightwaves.com/news/martens-q3-mixed-compared-to-year-ago-but-slows-from-q2

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