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TRUCKING INDUSTRY NEWS * USA -
* Con-Way, Old Dominion, Truckers Fall as Demand Sags
New York,NY,USA -Bloomberg, by Angela Greiling Keane -Oct. 2, 2008: -- Con-way Inc. and Old Dominion Freight Line Inc. led declines among U.S. trucking companies, pulling a benchmark industry index down by the most in almost 14 years on concern a slowing economy will further erode demand and profits... The Standard & Poor's Supercomposite Trucking Index, made up of 11 companies, dropped 12 percent, the most in the index's history... The decline reflects prospects for diminished freight volumes that will hinder price increases as the industry struggles with elevated fuel costs, analysts said. Con-way, the second-largest U.S. trucking company, said late yesterday that earnings this year would be less than it had projected...
* ANALYSIS - Truckers, analysts say peak season is not peaking - Signs point to more consolidation in trucking industry
Newton,MA,USA -Purchasing, by Dave Hannon -2 Oct 2008: -- At a time when trucking firms are usually struggling to keep up with demand for their services, the current economic slowdown has most U.S. truckers scaling back on capacity and looking for ways to reduce operating costs due to a continued slump in demand... Stifel Nicolaus analyst David Ross said the decline in ISM's manufacturing index generally correlates with less-than-truckload carrier tonnage, which could mean that volume could remain sluggish in the sector through the pre-holiday period... On top of lower volumes, some trucking firms are feeling the effects of tight credit markets directly. A Michigan television station reports that trucking firm Gainey Transportation recently defaulted on a $238 million loan with Wachovia Bank, which led Wachovia, which is in the midst of a sellout to Citigroup, to sue Gainey... And the slumping demand and tight credit markets also mean truckers are planning dramatic decreases in equipment spending. In a recent conference call, tranpsortation market analsyt FTR Associates said trucking firms have lost value on their assets and are forced to market down their value, which impacts their ability to raise new equity...
* COMMENTS - Gloomy Highways
Washington,DC,USA -Traffic World, by John Gallagher -6 Oct 2008: -- The financial disaster barreling down Wall Street could sideswipe shippers and carriers slogging through a two-year long downturn in the trucking industry... Carriers are already bracing for an even tougher road ahead... The American Trucking Associations forecast "a mild recession" in the United States after truck tonnage took a sharp turn downward in August... The association considered the rippling effects of the recent bank shutdowns and buyouts threatening enough to weigh in on the Bush administration's failed $700 billion bailout proposal. The ATA said the rescue plan would not only have helped Wall Street but could have helped stabilize a trucking industry already ravaged by bankruptcies... Steve Graham, vice president of market analysis for FTR Associates, a transportation consulting firm, said without an aggressive response from the government, money markets, credit markets and equity markets will be severely disrupted... Trucking bankruptcies increased more than 100 percent in the second quarter of 2008 compared to the same period a year ago, said Wachovia Securities analyst Justin Yagerman in a recent report. Much of the increase is a result of high fuel prices and falling transportation rates... Carrier customers could start reeling further from the crisis as well, particularly truck brokers who have been relying on carriers to cut them slack on payment terms. Such brokers could start to see that leniency dry up...
* Sherman Bros. acquires Boise trucking company
Harrisburg,OR,USA -The Oregonian, by Anne Saker -October 2, 2008: -- Sherman Bros. Heavy Trucking of Harrisburg said Thursday that it has acquired Trans-Continental Transport Inc., and TCT's Boise facility will become Sherman Bros. third terminal... The purchase was concluded last week. No terms were disclosed...
Labels: trucking industry news USA
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