Latest news with #Barclays42ndAnnualIndustrialSelectConference
Yahoo
22-02-2025
- Business
- Yahoo
Trucking execs see green shoots as industry awaits upturn
Signs that a freight recovery may be taking shape continue to surface, said trucking executives on the investor conference circuit this week. The overall sentiment is that the truckload industry is no longer in a recession and that normal seasonal trends have returned, but no one is ready to commit to when a meaningful positive inflection will occur. 'We know we're coming off the bottom of the market,' Drew Wilkerson, CEO at truck broker RXO (NYSE: RXO), told investors at Citi's 2025 Global Industrial Tech and Mobility Conference in Miami on Wednesday. 'You are starting to see the signs of a market that's shifting. The thing that's not known is, what's the pace of the recovery?' He cited a recent run in TL spot rates and noted that contract rates have turned positive. He also talked about the increase in carrier tender rejections and said internal data shows load-to-truck ratios have nearly doubled year over year. RXO is calling for contract rates to increase y/y by low- to mid-single digits this year. The company's TL revenue per load is up y/y by a low-single-digit percentage to start the year after being flat in the fourth from TL carrier Werner Enterprises (NASDAQ: WERN) offered some positive anecdotes as well. The company said dialogue with customers – mostly nondiscretionary retail and food and beverage companies – has been more positive than it was a year ago. The carrier is coming off a peak season in which project freight volumes doubled y/y even though rates were higher. Werner also pointed to an improvement in spot rates and said its one-way TL unit has seen two straight quarters of y/y rate improvement. It is calling for a 'gradually improving market throughout the rest of the year.' The outlook calls for rate per total mile in the one-way fleet to increase by 1% to 4% y/y during the first half of 2025, with revenue per truck per week in its dedicated unit to be flat to 3% higher for the full year. Management said it was still early in bid season but results from contractual negotiations are consistent with expectations heading into the year. It expects truck capacity to continue to exit even as the market improves, pointing to the end of payment forbearance programs as lenders to the industry are taking sizable write-offs.'If you're a small or medium-size carrier that's just been barely scraping by and maybe doing an interest-only payment, or maybe not making a payment at all, and the [market] turn comes later, it's probably too late,' Nathan Meisgeier, Werner president and chief legal officer, said at Barclays 42nd Annual Industrial Select Conference in Miami on Wednesday. 'Even with an improvement in spot rate, even with the turn, we expect to see capacity attrition. We're still seeing it right now.' Werner is calling for truck growth of 1% to 5% y/y, with most of the additions coming at its dedicated fleet where the pipeline remains strong. J.B. Hunt Transport Services (NASDAQ: JBHT) said the fact that it doesn't have anything negative to announce is probably a positive. It said the market has reached an inflection as normal seasonal patterns have returned after a 30-month-plus freight recession. Its customers are bracing for TL rates to increase 3% to 8% y/y in 2025 but it also cautioned that the same customers were expecting rate increases a year ago. The company said it's still too early to forecast what will happen with intermodal rates this year but that it plans to focus on freight selection in hopes of running a balanced network with improved asset utilization and minimal repositioning costs. It also expects to get back to adding trucks in its dedicated service, without any notable offset from customer attrition, by the back half of the year. The company placed more than 1,700 trucks into a new service last year, but the additions were wiped out as some customers cut back on their capacity needs and others went out of business. J.B. Hunt reiterated a long-term goal of adding 800 to 1,000 net trucks in dedicated in more analysis of the current freight market? Watch the February edition of The State of Freight webinar here. More FreightWaves articles by Todd Maiden: LTL panel tells shippers to start using new freight classification codes now ABF Freight latest LTL carrier to nab Yellow terminals J.B. Hunt working on intermodal mix, awaiting rate inflection The post Trucking execs see green shoots as industry awaits upturn appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
J.B. Hunt working on intermodal mix, awaiting rate inflection
J.B. Hunt Transport Services said it's focused on finding the right intermodal freight to improve efficiency and minimize costs as market fundamentals remain tepid. The Lowell, Arkansas-based multimodal transportation provider outlined a three-pronged approach centered on rates, volumes and freight mix for the current intermodal bid season at Barclays 42nd Annual Industrial Select Conference held in Miami on Wednesday. While rate increases are the most impactful lever the company has to drive margins higher, it may have to settle for improving mix as there is no guarantee pricing will move up materially this year with capacity readily available. J.B. Hunt (NASDAQ: JBHT) said it's focused on winning the right freight that allows it to run a balanced network with minimal empty containers and repositioning costs. It views freight selection as the primary 'controllable' at this point of the cycle. 'It might not necessarily do a lot to revenue per load or rate or yield, but it can do a lot in terms of making us more efficient and productive with our assets and with utilization,' said Brad Delco, senior vice president of finance. The unit saw record volumes for a second straight time during the fourth quarter, but the operating ratio (inverse of operating margin) deteriorated 170 basis points year over year to 92.7%. Equipment repositioning costs from network imbalances and peak season hiring expenses were the culprits, along with a decline in revenue per load. J.B. Hunt's long-term operating margin target for intermodal is 10% to 12% (90% to 88% OR). Part of the recent overhang on the business is the company's decision to grow capacity ahead of demand. J.B. Hunt has been carrying incremental costs tied to equipment acquisitions but believes the gamble on capacity will pay off over time. It estimates there are 7 million to 11 million loads that should be moved off the highway and onto the railroads. On the current demand front, management said it's 'still a little too early' to say what intermodal rates will do this year. It said more will be known in May and June but also noted that March is an important month. Importantly, it said the recent volume surge is not from customers pulling forward inventory due to tariff concerns as some analysts have suggested. It also said some customers have indicated they will be converting truck shipments to the rails this year as one-way truckload rates rise. It said the fact that it has nothing negative to report after a 30-month-plus freight recession is a positive. It believes the market has reached an inflection, noting normal seasonal trends from the fourth to the first quarter. The company guided to a 20% to 25% sequential decline in consolidated operating income for the first quarter during its fourth-quarter call one month ago. Management reiterated its expectation for dedicated account losses to end in the second quarter. J.B. Hunt spent 2024 adding more than 1,700 trucks into service at new or existing customers, but those additions only offset account shrinkage and customer losses. It expects to get back to a net addition run rate of 800 to 1,000 trucks annually and views dedicated as a $90 billion market. It noted that new accounts are usually unprofitable in the first three months, reaching breakeven by month six, and profitability thereafter. That means it will likely continue to run under a long-term margin target of 12% to 14% in the near term. The company's 2025 capital expenditures budget doesn't include trailing equipment purchases. It could be awhile before those investments are required again. Shares of JBHT were down 2.7% at 2:52 p.m. EST on Thursday, a down day for trucking and intermodal providers. The S&P 500 was up 0.3% at the time. More FreightWaves articles by Todd Maiden: Jack Cooper LTL caper concludes Cass TL linehaul index up y/y for first time in 2 years Knight-Swift headlines buyers in latest Yellow terminal sale The post J.B. Hunt working on intermodal mix, awaiting rate inflection appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
JetBlue still in talks with multiple airlines for partnership
By Doyinsola Oladipo NEW YORK (Reuters) - JetBlue Airways said on Wednesday that it is still in talks with multiple airlines to establish a partnership and is willing to allocate more funds to get a deal done. In November, the Boston-based 1st U.S. Circuit Court of Appeals sided with the U.S. Department of Justice in blocking the JetBlue and American Airlines' "Northeast Alliance," which had allowed the two carriers to coordinate flights and pool revenue. "When I look at the benefits that we got from the partnership we had, I think that's something that's attractive for us," JetBlue President Martin St. George told the audience at the Barclays 42nd Annual Industrial Select Conference in Miami, Florida. The biggest benefit of a partnership would be improving the utility of the company's loyalty points for customers which trails multiple competitors, he said. "If we find a deal that's accretive, we'll absolutely do it," St. George said, adding that the company is looking forward to letting the Northeast Alliance "play out in the original design." The Justice Department under the Biden Administration argued that the alliance would hurt consumers, saying the partnership eliminated incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. St. George said there is money in its JetForward plan allocated for partnership but said if the number had to change, the company will provide a guide, adding that a financier would be good for the airline. The company said its JetForward initiatives included priorities to improve the company's reliability, network, product and financial future, targeting $800 million to $900 million for incremental EBIT through 2027. Sign in to access your portfolio
Reuters
19-02-2025
- Business
- Reuters
JetBlue still in talks with multiple airlines for partnership
NEW YORK, Feb 19 (Reuters) - JetBlue Airways (JBLU.O), opens new tab said on Wednesday that it is still in talks with multiple airlines to establish a partnership and is willing to allocate more funds to get a deal done. In November, the Boston-based 1st U.S. Circuit Court of Appeals sided with the U.S. Department of Justice in blocking the JetBlue and American Airlines' "Northeast Alliance," which had allowed the two carriers to coordinate flights and pool revenue. "When I look at the benefits that we got from the partnership we had, I think that's something that's attractive for us," JetBlue President Martin St. George told the audience at the Barclays 42nd Annual Industrial Select Conference in Miami, Florida. The biggest benefit of a partnership would be improving the utility of the company's loyalty points for customers which trails multiple competitors, he said. "If we find a deal that's accretive, we'll absolutely do it," St. George said, adding that the company is looking forward to letting the Northeast Alliance "play out in the original design." The Justice Department under the Biden Administration argued that the alliance would hurt consumers, saying the partnership eliminated incentives for American to cut prices to lure customers from JetBlue, a historically disruptive rival with often lower fares. St. George said there is money in its JetForward plan allocated for partnership but said if the number had to change, the company will provide a guide, adding that a financier would be good for the airline. The company said its JetForward initiatives included priorities to improve the company's reliability, network, product and financial future, targeting $800 million to $900 million for incremental EBIT through 2027. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here.
Yahoo
13-02-2025
- Business
- Yahoo
Norfolk Southern to present at Barclays 42nd Annual Industrial Select Conference
ATLANTA, Feb. 13, 2025 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) President and CEO Mark George and Executive Vice President and Chief Marketing Officer Ed Elkins will participate in a fireside chat at the Barclays 42nd Annual Industrial Select Conference. Details on how to listen in to the discussion follow below. What: Barclays 42nd Annual Industrial Select ConferenceWhen: Wednesday, Feb. 19, 2025 at 10:25 a.m. ETWhere: Via Webcast The presentation will be posted at on the Investors page. About Norfolk SouthernSince 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports in the Gulf of Mexico and Great Lakes. Learn more by visiting View original content to download multimedia: SOURCE Norfolk Southern Corporation Sign in to access your portfolio
