Latest news with #JohnKingston
Yahoo
27-05-2025
- Business
- Yahoo
70-unit Illinois carrier files for bankruptcy protection
An Illinois carrier with 70 power units recently filed for Chapter 11 bankruptcy protection. AZA Transportation listed assets of between $100,001 and $500,000 on its bankruptcy filing in the U.S. Bankruptcy Court for the Northern District of Illinois. It is based in Mount Prospect, which is in Cook County, the same county as Chicago. The company listed liabilities of $500,000 to $1 million. The bankruptcy was filed May the 20 largest creditors listed in the bankruptcy filing, the largest combined claim is from Keystone Equipment Finance Corp. based in West Hartford, Connecticut. It has three separate claims totaling $82,905. Another large creditor is Transportation Alliance Bank, based in Ogden, Utah. Its unsecured claim is $43,415, secured by a 2022 Freightliner. That same bank also has a $23,640 claim against AZA, secured by a Great Dane trailer. BMO, the former Bank of Montreal, which is a major lender to the trucking industry, has a claim of just under $20, total number of creditors is listed as between one and to the Federal Motor Carrier Safety Administration's SAFER document on AZA, AZA has 71 drivers for its 70 power units and carries general freight. The SAFER document reports no crashes for AZA in the 24 months prior to the bankruptcy. Its vehicle out-of-service rate for those two years was 12%, less than the national average of 22.26%. But its driver out-of-service percentage of 9.5% was more than the national average of 6.67%. More articles by John Kingston As shippers adjust to tariffs, the message at Momentum is: Don't forget the TMS Georgia tort reform aims to change practices in judicial 'hell hole' Double whammy for Wabash: 2 key agencies cut debt rating on trailer builder The post 70-unit Illinois carrier files for bankruptcy protection appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-04-2025
- Business
- Yahoo
Benchmark diesel price down a second straight week on slide in futures
The Department of Energy/Energy Information Administration average retail diesel price fell 4.5 cents a gallon to $3.534, with the price released Tuesday morning but with an effective date Monday. It's the second consecutive decline, coming after three weeks of gains that added 9 cents a gallon to the DOE/EIA price. The two latest declines then sliced 10.5 cents off the price. For most of April, the futures price of ultra low sulfur diesel on the CME commodity exchange has been extremely volatile, but it hasn't broken out with a steady upward or downward trend during that time. After a settlement of $2.322 a gallon on April 2 and just under $2.19 a gallon the next day, a wide trading range of about $2.04 to $2.11 has settled into place. At about 11:45 a.m. EDT Tuesday, ULSD had risen on the back of surging equity markets to be up about 1.86% to $2.1071 a gallon, an increase of 3.85 cents. The result is that the retail prices reflected in the DOE/EIA number, which always lags futures and wholesale moves, is down 10.5 cents a gallon primarily from catching up to the big earlier drop rather than any recent changes in futures markets. But it's been a wild ride in the past year. A year ago almost to the day, on April 23, the price of ultra low sulfur diesel on the CME commodity exchange settled at $2.5792 a gallon. Since that date, ULSD has settled higher than that only seven times. The most recent was on Jan. 17, when ULSD settled at $2.621. ULSD has been on a steady slide since then. In the most recent decline, the latest high settlement of $2.2877 per gallon was recorded on March 26. The most recent low point was $2.0464 on April 10. That was the lowest settlement in the past year. Analysts continue to reach for oil-specific reasons for movements in petroleum markets and are challenged to come up with any. In a Reuters article Tuesday, the news agency quoted SEB analyst Bjarne Schieldrop as saying that 'the daily fluctuations in Brent crude oil prices have been quite well aligned with fluctuations in equity prices.' Brent is the world's crude benchmark. However, what has been specific to oil are demand projections, whether they are oil forecasts or general outlooks on economic activity translating to demand for petroleum. A report from Rystad Energy that received wide media coverage Tuesday said a 'prolonged trade war' could result in China's demand growth being cut by half. In its latest monthly report, the International Energy Agency projected global demand growth of just 730,000 barrels a day in 2025, an extremely low number by recent non-COVID points of comparison. It projected that Chinese growth would be 160,000 barrels per day. That was a reduction of 70,000 from the prior month's IEA forecast. If Rystad's projection were based off the 160,000-barrel-per-day number, that would take another 80,000 barrels per day off the IEA's forecast, which is just short of another 11% drop in its demand forecast. More articles by John Kingston Another federal circuit weighs broker liability, boosting odds of Supreme Court review Freight fraud everywhere, but Truckstop CEO asks: Is anybody going to jail? A market on the precipice: 5 takeaways from the April State of Freight The post Benchmark diesel price down a second straight week on slide in futures appeared first on FreightWaves.
Yahoo
17-04-2025
- Business
- Yahoo
Fear and loathing for truckload earnings
Q1 earnings season is upon us, with early results pointing to continued degradation in truckload carriers' financial health. Wisconsin-based Marten Transport released its Q1 earnings on Wednesday, but with publicly traded companies timing is everything. FreightWaves' John Kingston notes, 'The earnings, released midday Wednesday in an unusual move given that the stock market was open for business, saw declines in almost every major metric.' A big metric truckload carriers use is operating ratio (OR), or the comparison of your costs to your revenue. In the case of Marten, OR decreased in its truckload, dedicated, intermodal and brokerage segments. Truckload fell to 100.3% compared to 99.5% last year. Dedicated, viewed as a safer option compared to the boom-bust of one-way truckload, fell 500 basis points y/y from 87.1% to 92.2%. Intermodal, which remained over 100 OR last year, rose from 101.5% in Q1 2024 to 108.3%. The one bright side was Marten's brokerage segment, which fell 110 bps y/y to 93.5%. The earnings release also showed a shrinking fleet, with Marten's total tractor count down to 3,040 compared to 3,406 a year ago. Diving further showed Marten's truckload tractor count fell from 1,830 to 1,670 while dedicated declined from 1,459 to 1,262 tractors. Executive Chairman Randolph Marten noted in the release that the company's earnings continued to be pressured by the duration and depth of the freight market recession, paired with overcapacity and weak demand. The tariff uncertainty added further woes, with Marten noting the company remains focused on minimizing the impact of U.S. and global economies from trade policy volatility. Marten's plan to address these challenges comes from organic growth and getting fair compensation for their premium Ohio-based Ease Logistics is part of a collaboration between the Ohio Department of Transportation and the Indiana Department of Transportation aimed at testing truck automation technologies. FreightWaves' Steve Barrett writes, 'A DOT grant is partially funding the $8.8 million, multiyear project, which is gauging different levels of automation in truck fleets.' The route involves a 175-mile stretch between Columbus, Ohio, and Indianapolis, with two tractor-trailers participating in the test. 'This technology offers a complete safety system with redundancies that could make roadways safer,' Ohio State Highway Patrol Capt. Chris Kinn said. 'Unlike human drivers, automated vehicles do not drive impaired, text while driving, fall asleep at the wheel or recklessly speed. The goal of this technology is to take the human error out of the safety equation.' The trucks are equipped with Kratos Defense platooning technology linking them electronically, with a human driver in the lead vehicle being able to control the speed and direction of the second truck. DriveOhio noted that the tech enables the autonomous follower truck to precisely follow the path of the lead truck. For law enforcement agencies worried about trucks following too closely, the two trucks are equipped with purple lights in the cabs to notify them they're electronically linked. Freight audit and payment provider Cass Information System released on Monday its March Cass Freight Index. The shipments component saw a slight narrowing in year-over-year declines, with March down 5.3% y/y compared to 5.5% y/y in February. Seasonally adjusted month over month saw shipments fall 2.1% compared to a 4.9% gain in February due to severe January weather. Pre-tariff shipping was also cited for the higher February numbers. Freight expenditures, which measured the total amount spent on freight, rose 2.8% m/m in March. Looking at y/y comps, the decline narrowed to 2% from a decline of 4.6% in recent 90-day pause on most reciprocal tariffs is expected to lead to more pre-tariff shipping in Q2 but will be counterbalanced by adverse effects from the extreme China tariffs. Tim Denoyer, vice president and senior analyst at ACT Research, wrote in the report, 'Volumes may also be temporarily supported in the coming months as consumers scoop up pre-tariff goods before prices go up. But thereafter, the trade war is likely to extend the for-hire freight recession as higher prices reduce goods affordability and consumers' real incomes.' Looking ahead, the report notes a frequently asked question is what proportion of freight is international trade, as the Cass Data focuses on domestic data. Denoyer notes, 'Even with good border and port data, it's tough to pinpoint.' To take a stab at that question, ACT asked the academic community. Jason Miller, professor at Michigan State, estimates the answer is in the range of 20% to 25%. In the meantime, Denoyer says freight is caught up in the trade war, adding, 'We expect a few more months of brisk demand for pre-tariff goods, followed by a tariff adjustment period with lower goods demand. It's been 39 months since the first y/y decline of this cycle, so a recovery can only be so far away. But freight is very much in the crosshairs of the trade war.' Summary: Tariff-related uncertainty continues to weigh on the dry van segment, which, compared to the previous year, is in a better pricing situation despite a deterioration in load tender volumes. The past week saw dry van outbound tender rejection rates fall 33 basis points from 5.52% on April 7 to 5.19%. Dry van outbound tender volumes were mostly flat w/w, up 0.76 points, from 6,992.55 points to 6,993.31 points. A bump in dry van spot rates the first week of April has given way to a slump, with the SONAR National Truckload Index 7-Day average falling 6 cents per mile all in from $2.29 on April 7 to $2.23. Spot market linehaul rates also fell, down 6 cents per mile from $1.73 to $1.67. For linehaul rates, fuel costs are based on the average retail price of diesel fuel and fuel efficiency of 6.5 miles per gallon. The formula is NTID – ( For fleets languishing in this tough operating environment, one sign of relief is the downward movement in the average retail price paid for diesel fuel. DTS fell 3 cents per gallon w/w from $3.65 to $3.62. Compared to this time last year's price of $4.07 per gallon, diesel prices are 45 cents per gallon lower. A single fuel tank for a Class 8 tractor averages between 120 and 150 gallons, with some fleets opting for two tanks at around 300 gallons. A 45-cent-per-gallon fuel savings can give fleets anywhere between $54 in savings for a 120-gallon tank to $135 for a 300-gallon tank. If a tractor runs 2,000 miles per week and has an engine at the low end of fuel economy at 6.5 mpg, it may fuel one or two times a week including extra fuel loss from idling. Doing the math, 2,000 miles divided by 6.5 mpg yields approximately 307 gallons, with a 300-gallon tank fueling around once a week and a 120-to-150-gallon tank at least twice a week. Over the course of a year, that can add up to between $5,616 and $7,020 extra net income per truck. NIMBY, other concerns limit state acquisition of land for public truck parking (Overdrive)FMCSA OKs exemptions for pulsing brake lights for 2 truck fleets (FreightWaves) Trucking companies spark healthier lifestyles for drivers (Commercial Carrier Journal) Freight fraud everywhere, but Truckstop CEO asks: Is anybody going to jail? (FreightWaves) Tariff Impact Analysis on Automakers in the United States (Center for Automotive Research)Breaking from the FreightTech AI pack: Companies make their case at TIA meeting (FreightWaves) The post Fear and loathing for truckload earnings appeared first on FreightWaves.
Yahoo
06-04-2025
- Automotive
- Yahoo
Weekly release of benchmark diesel price shifts to Tuesday morning
The Energy Information Administration will be releasing its weekly average retail diesel price data on Tuesday mornings beginning this week, ending the practice of publishing the benchmark price on late Monday afternoon. The change was announced on the EIA's Gasoline and Diesel Fuel Update page. This week will mark the first time the new policy is in effect, so the price that would have been published late on Monday will instead be released around 10 a.m. on Tuesday. EIA's Gasoline and Diesel Fuel Update page is a compilation of the agency's average retail price for gasoline and diesel. The data is published with a national average and several regional subcategories as it is the national average diesel price that gets the most attention, because it is the basis for most fuel surcharges in trucking and other transportation services. In an email to FreightWaves, an EIA spokesman said the agency is making the change to give respondents to its weekly survey more time to provide their data. 'In recent years, we have experienced that some survey respondents struggle to provide the data early in the day on Mondays,' the spokesman said. 'This typically delayed our completion of data collection by one and a half hours. These trends are compressing the amount of time we have for data processing and quality control. Therefore, we are adding time on Tuesday morning to ensure that the data is reliably released on time each week.' The EIA also has been 'experiencing resource constraints,' the spokesman said. 'This led us to evaluate our processes so we can ensure quality and reliability of our data.' However, the spokesman did not mention whether the changes were related to any of the reductions being overseen by the Department of Goverment added that there is no change to the methodology being used by EIA to calculate its numbers. The change is not a pilot program that could be reversed after a period of review, the spokesman added. Moving it back to Mondays would 'require additional resources to make that adjustment.' More articles by John Kingston Despite weak freight market, trucking jobs soared in March ATBS says independent drivers earned a little more in '24 but drove more as well Truck driver triumphs at Supreme Court in case involving marijuana testing The post Weekly release of benchmark diesel price shifts to Tuesday morning appeared first on FreightWaves.
Yahoo
03-04-2025
- Business
- Yahoo
Landstar anticipates fraud-related earnings hit
Landstar System Inc. (NASDAQ:LSTR) has found itself at the center of a significant supply chain fraud investigation, leading to a major revision of its first-quarter 2025 earnings guidance. Investors have responded to the revelation, disclosed in a late Wednesday 8-K filing, with Landstar's stock taking a hit over the past 24 hours. According to Landstar's recent update, the company initially anticipated Q1 2025 earnings per share to range between 90 cents and 95 cents, assuming revenue remained at the midpoint of its prior guidance. However, this outlook changed drastically after the company uncovered a supply chain fraud incident during the final fiscal week of the quarter. While the details remain under investigation, the fraud is believed to have resulted in 'an impairment of trade accounts receivable recorded on Landstar's December 28, 2024, balance sheet.' Landstar also noted the event 'does not involve the Company's core North American truckload services.' Landstar now expects this fraud to negatively impact EPS by an additional 35-50 cents. Before factoring in any potential insurance or other recoveries, this translates to a financial hit of approximately $12.5 million to $17.9 million, based on the company's 35.7 million outstanding shares. Its earlier guidance for the quarter was $1.05 to $1.25 per share. Beyond the direct financial impact of the fraud, Landstar is also grappling with highly elevated insurance and claims costs, driven largely by cargo theft and truck accident claims, according to the 8-K. These factors had already placed pressure on the company's bottom line before the fraud was remainder of the Landstar statement regarding its finances and the fraud was mixed. It said in the first eight weeks of the quarter, loads hauled by the company were down 4% from the corresponding period of 2024. Its earlier first-quarter guidance was that the company would be down 2% to 7% on loads hauled. Revenue per load in the first eight weeks of 2025 was approximately equal to a year ago, Landstar said. Loads hauled on what it described as 'unsided/platform equipment,' presumably flatbed, had a 4% increase in revenue per load, while van loads had a 2% decrease. Additionally, Landstar repurchased approximately $60 million worth of shares during Q1 2025, demonstrating confidence in its long-term prospects despite the current turbulence. However, this move has done little to ease investor anxiety in the wake of the fraud disclosure. Investors responded swiftly. As of Thursday, company shares have dropped 7.87%, falling $11.95 to $139.98. The stock traded as high as $150.89 before plunging to a low of $ has reached out to Landstar System for comment. Note: Stock information was pulled at 1:30pm EST on Thursday. John Kingston contributed to this report. Police say a fraudulent trucking company executed a large-scale cargo theft in Tennessee, stealing 80,000 pounds of beef valued at $350,000 from Southeastern Provisions in Bean Station on March 27. According to police reports, the theft was uncovered when two customers reported missing shipments. Investigators found that the loads had been subcontracted to a company called 'List Trucking Sales,' which has since become unresponsive. The dispatcher, identified as 'Ahmed Wengy,' also ceased communication. Authorities discovered that the driver's identification was never verified before the shipments were loaded, and the provided company details could not be authenticated. The stolen loads were intended for destinations in Kentucky and Michigan, but their current whereabouts remain unknown. Learn more about the incident here. Memphis police recently reported a significant decline in business burglaries and cargo thefts in 2025, with commercial thefts down 40% compared to last year. Cargo thefts from train cars have dropped 73%, while thefts from tractor-trailers have fallen 46%.Police Chief CJ Davis attributes this success to improved communication between businesses and law enforcement. Strategic measures, such as coordinating train schedules to reduce idle time and enhancing surveillance footage sharing, have played a key role. Learn more in this video about how cargo theft affects the Memphis community. Be part of the solution that stops freight fraud in its tracks. Let's cut through the noise and address this issue head-on! Freight fraud has reached a crisis level, and it impacts everyone in the industry. It's time for us to come together to address this critical problem and share best practices on how to mitigate it. Join us on May 14 in Dallas at the Freight Fraud Symposium, where transportation executives, freight leaders and technology buyers will come together to discuss the issues we all face, share lessons learned and get insights on the latest technology to tackle this problem. Space is limited, so register now to save your spot! Articles by Grace Sharkey VIDEO: Drivers voice frustrations with FMCSA enforcement Former Nikola CEO Trevor Milton receives Trump pardon after securities fraud conviction SFOO Summit: 30 years of carrier improvement and development with Truckstop The post Landstar anticipates fraud-related earnings hit appeared first on FreightWaves. Sign in to access your portfolio
