1
“KSU saga gets a new twist or 2 – CP formerly files raised bid – enuff for KSU shareholders in their vote 8/19? Well, the key is the STB voting trust decision – and now STB says decision, expected last month, will be “no later than 8/31”! View that as 1-finger salute to the Street.” — an Aug. 10 Tweet from independent transportation analyst Tony Hatch, via Commtrex
25
Ashcroft Terminal Ltd. announced on Aug. 12 it had signed an investment agreement with Canadian Tire Corp. in which Canadian Tire will acquire a 25% equity interest in the inland port. Located 300 kilometers east of Vancouver in British Columbia, Ashcroft Terminal is the only major privately owned industrial property in Canada where both CN and Canadian Pacific lines run through, transporting import and export cargoes to and from the marine terminals in Vancouver, across Canada and other North American markets, Ashcroft officials said.
60
J.B. Hunt Transport Services Inc. marked its 60th anniversary during an Aug. 10 virtual event. Attendees received a special message from company co-founder Johnelle Hunt, who expressed her gratitude for the company and its employees continuing the vision of her late husband, Johnnie Bryan Hunt. The two founded J.B. Hunt in 1961 as a rice hull operation near, Little Rock, Arkansas. The Hunts subsequently entered the trucking business in 1969. Over the next five decades, helped “transform how freight is moved,” as J.B. Hunt officials put it.
95
“Roughly ~95% of transportation and logistics companies under coverage beat EPS estimates as stronger pricing gains helped offset operational challenges across congested freight networks. While growth rates will slow as we cycle pandemic comparisons, the strong operating momentum should carry through 2H21 and likely extend well into 2022. Consensus 2021/2022 EPS estimates increased ~3.5% and ~2.5%, respectively, post reporting. 2H21 outlooks may still prove conservative, in our view, given the strong macro backdrop and sustained imbalance in freight demand and supply.” — Baird Equity Research Senior Research Analyst Garrett Holland in an Aug. 10 transportation/logistics report titled, “Q221 Recap: Cycle Visibility Improving, Fears of Imminent End Exaggerated”
121
“Normal seasonality would suggest high-single-digit growth in rail volumes in Q3, down from the 23% y/y increase in Q2, but momentum slowed over the past two months as network fluidity has suffered and chip shortages have worsened. If these issues persist, there is a risk of rail volumes slipping to y/y declines. Though the TL and LTL sectors aren’t subject to quite the same capacity constraints, this suggests a bit slower near-term freight volume outlook. With 121 containerships anchored off North American ports as of August 10th, the outlook for this peak season is clearly strong, but supply chains remain stretched.” — Cass Information Systems Inc. in an Aug. 12 email unveiling its July indexes (“Freight slows due to bottlenecks”)
3,000
PowerFleet Inc. — a provider of subscription-based wireless IoT and M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets — will expand the deployment of its LV-500 solar-powered trailer tracking solution to transportation company Day & Ross’ U.S fleet operations. Day & Ross will implement the solution across a fleet of 3,000 trailers to achieve better asset visibility and increased utilization, PowerFleet announced on Aug. 9.
8,200
Preliminary trailer orders “continue to slide to the bottom of this cycle, registering only 8,200 units in July" — 32% below June and -58% year over year, FTR officials said on Aug. 10 Trailers orders for the past 12 months totaled 354,000. “The orders are in for 2021 but the challenge remains to build the trailers,” Don Ake, FTR vice president of commercial vehicles. “OEMs continue to struggle hiring factory workers. Suppliers are struggling to keep pace due to a shortage of manpower and imported parts and components. The supply chain is still experiencing disruptions and bottlenecks. Some improvement in production is expected this year, but there are indications some supplies will be restricted into next year.”
100.8 million
For the quarter ended June 30. Bolton, Ontario-based Titanium Transportation Group Inc. posted a fourth consecutive quarter of record revenue at $100.8 million, driven by growth in both the truck Transportation and logistics segment, the company announced on Aug. 10. “Our strategic decision and investment to date in three U.S. freight brokerage centers over the last 27 months continues to deliver exceptionally strong growth," CEO Ted Daniel said. “We are exceptionally pleased with the results to date and remain on track with our expansion plans to open two additional new centers in 2021 for a total of five.”
1.4 trillion
“As China absorbs U.S. technology it plans to replace foreign corporations with domestic ones. A more belligerent China now boasts an increasingly skilled labor force, growing middle class, strategic raw materials, highly developed manufacturing capabilities, and plans to further invest $1.4 trillion in advanced manufacturing and automation by 2025. With its high labor costs, U.S. manufacturing will be forced to improve productivity and increase the efficiency of its workforce to effectively compete (of particular concern is 25% of the U.S. manufacturing labor force is now age 55 or older). National security concerns and ongoing tensions have created this need to reduce dependence on manufactured imports. Smart strategies include building strong transportation links with Mexico and Canada that will develop competitive advantages.” — RESIDCO email newsletter issued Aug. 10. RESIDCO specializes in structured solutions for acquisitions, financing and dispositions regarding rail equipment leasing in North America.
