![[Valid Atom 1.0]](valid-atom.png "Validate my Atom 1.0 feed")
TRUCKING ANALYSIS * USA - Capacity situation still looms large for shippers and carriers
Waltham,MASS,USA —Logistics Management, by Jeff Berman -28 Aug 2009: -- Despite some recent sequential increases in trucking volumes, capacity has steadily continued to leave the marketplace in recent quarters... According to a recent report by Avondale Partners analyst Donald Broughton notes that in the second quarter Avondale estimates 370 companies with an average fleet size of 18 trucks—representing roughly 6,725 trucks or less than 0.4 percent of the nation’s over the road heavy duty truck capacity—were pulled from the road. What’s more, Broughton explained this is the lowest number of companies being recorded and the smallest average size recorded since the first quarter of 2007... With excess capacity giving shippers the upper-hand in terms of pricing power, a trucking executive told LM, that big shippers are clearly in favor of the current situation as it gives them more options... (Photo from truckwallpapers: Scania trucks)* Industry analyst says YRCW should continue to operate into at least mid-October
Overland Park,KAN,USA -Logistics Management, by Jeff Berman -1 Sept 2009: -- In an 8-K filing with the Securities and Exchange Commission, less-than-truckload transportation services provider YRC Worldwide (YRCW) released details regarding its tenth amendment to its credit agreement... According to the filing, the credit agreement—led by a group of lenders, including JPMorgan Chase Bank—will continue to provide YRCW with a $950 million senior revolving credit facility, including capital for borrowing under certain foreign currencies and letters of credit, and a senior term loan for roughly $111.5 million. The agreement eliminates a mandate included in prior credit agreements that YRCW maintain liquidity equal to or greater than $100 million at all times until October 13, 2009... And it also enables YRCW to up the net proceeds from asset sales in 2009 to $400 million, excluding certain specified asset sales... This news comes at a time when the LTL industry is suffering from decreased pricing power due to the recession and excess capacity throughout the industry, which, in turn, has given shippers more options moving freight...* Pacer updates credit agreement
Concord,CAL,USA -Logistics Management, by Jeff Berman -31 Aug 2009: -- Freight transportation and logistics services provider Pacer International Inc. announced last Friday it has entered into a revised credit agreement with a group of financial institutions led by Bank of America... This agreement comes ahead of its August 31 deadline based on a waiver on its leverage covenant and follows a July 1 announcement that it had successfully entered into a First Amendment and Waiver of its 2007 Credit Agreement with Bank of America and other financial institutions... Like many other freight transportation companies, Pacer has seen volumes and earnings drop in tandem this year. In its second quarter earnings release on August 5, Pacer reported that: year-to-date revenue fell $284.1 million to $735.3 million, compared to $1,019.4 billion for the same timeframe in 2008; net income declined from $26.8 million in the first half of 2008 to a net loss of $184.7 million in 2009; and intermodal—Pacer’s largest business segment—saw income decline from $251.4 million in 2008 to a loss of $189.4 million in 2009... (Photo from 2.bp.blogspot.com: freightliner trucks columbia)
Labels: trucking industry analysis USA
posted by Unknown @ 7:07 AM
0 Comments:
Post a Comment
<< Home