XPO | Jacobs “industrial Recession”

Don’t you love these articles that try to make it sound like the sky is falling? Of course their earnings are off. All the LTL’s, and truckload carriers have had lower volume and revenue all of 2019.
In the case of the article I posted , I've noticed that the same author usually has this angle. Other reports about C.H. Robinson's 3rd quarter earnings were more matter of fact.

I posted this because it goes along with the thread.
 
Isn’t GM still on strike too ? There are several issues. Until we stop farming out our jobs. This country will suffer.
 
Isn’t GM still on strike too ? There are several issues. Until we stop farming out our jobs. This country will suffer.
As long as the rich guy running this company or that company can have someone do it cheaper that's what will happen....even if it's on the other side of the globe.
 
That's not something Jacobs made up- a recession is just an economic slowdown. Freight, industry in general, even the economy at large has been slowing. All the new tariffs have a lot to do with it, but they're not the only reason.
 
here are some 3rd quarter highlights.
ABF: https://arcb.com/about/news-events/press-releases/arcbest-announces-third-quarter-2019-results
Third Quarter 2019 Versus Third Quarter 2018
  • Revenue of $565.6 million compared to $585.3 million, a per-day decrease of 4.1 percent.
  • Tonnage per day decrease of 4.6 percent, with a ten percent decrease in LTL‑rated freight offset by a double digit percentage increase in truckload‑rated freight.
  • Shipments per day decrease of 3.9 percent.
  • Total weight per shipment decreased 0.7 percent with a decrease in the average LTL‑rated weight per shipment of approximately 6 percent.
  • Total billed revenue per hundredweight increased 1.5 percent. Excluding fuel surcharge, the percentage increase on LTL‑rated freight was in the high‑single digits.
  • Operating income of $31.7 million and an operating ratio of 94.4 percent compared to operating income of $50.2 million and an operating ratio of 91.4 percent. On a non-GAAP basis, operating income of $38.5 million and an operating ratio of 93.2 percent compared to operating income of $51.2 million and an operating ratio of 91.2 percent.
YRCW: http://investors.yrcw.com/static-files/b28d7263-d7f3-4950-80ea-0b6a11944774
*The consolidated operating ratio for the third quarter 2019 was 98.1 compared to 96.8 in third quarter2018. The operating ratio at YRC Freight was 96.1 compared to 97.0 for the same period in 2018.The Regional segment’s third quarter 2019 operating ratio was 100.9 compared to 96.2 a year ago
*Third quarter 2019 LTL tonnage per day decreased 4.0% at YRC Freight and decreased 3.6% at the Regional segment compared to third quarter 2018
*Total shipments per day for the third quarter 2019 declined 3.5% at YRC Freight and 3.9% at the Regional segment

XPO: http://investors.xpo.com/news-relea...ogistics-announces-third-quarter-2019-results
Third Quarter 2019 Results by Segment

  • Transportation: The company's transportation segment generated revenue of $2.68 billion for the third quarter 2019, compared with $2.85 billion for the same period in 2018. The reduction in segment revenue primarily reflects a decrease in freight brokerage and direct postal injection revenue from the company's largest customer, lower rates in truck brokerage and unfavorable foreign currency exchange, partially offset by growth in managed transportation.

    Operating income for the transportation segment was $208 million for the third quarter 2019, compared with $196 million for the same period in 2018. Adjusted EBITDA for the segment was $333 million for the quarter, compared with $326 million for the same period in 2018.

    In North American LTL, yield, excluding fuel, improved by 2.9% year-over-year for the third quarter 2019. The third quarter operating ratio for LTL was 82.3%. Adjusted operating ratio, a non-GAAP financial measure, was a third quarter record at 80.8%, a 460 basis point improvement year-over-year.
 
Celadon , biggest bankruptcy in truckload history expected by mid-week



Short seller’s report calling the company “A House of Cards” in April 2017 foretold what was to become of one of the largest truckload carriers

Cel3.jpg



Celadon Group (OTC: CGIP) will file for bankruptcy protection under Chapter 11 no later than Wednesday, December 11, according to internal sources. The Indianapolis-based, publicly-traded trucking carrier employed more than 3,200 drivers and took in more than $1 billion in gross revenue as recently as 2015.

More recent numbers are difficult to come by because Celadon had to restate its financial reporting after mismanagement and a complex accounting scandal that ultimately resulted in former executives being indicted on securities fraud charges yesterday, December 5.

But the imminent bankruptcy’s immediate cause was a technical default on Celadon’s covenants, the agreements between borrowers and lenders that can define requirements for cash reserves and earnings. Celadon entered the week with scant cash in its accounts to continue operations, but was negotiating with creditors Luminis and Blue Torch to secure further financing. Those talks fell through Thursday morning, December 4, when talks between Blue Torch and Luminis broke down over collateral issues. Blue Torch owned 70% of the debt and Luminus owned 30%.

Over-the-road drivers may be at risk of being stranded — our source could not verify that Celadon’s drivers would get home — and should fill their tanks at the earliest opportunity as the company’s fuel cards still work. Celadon’s 3,500 employees could lose their jobs soon.

Many top customers of the company have been notified, in an effort by management to mitigate freight being stranded after a filing. Celadon handles significant volumes of critical automotive freight and told its customers that it did not want their plants to shut down. Sources not associated with the company have also told FreightWaves that FedEx (NYSE:FDX) has stopped loading Celadon branded trailers.

Celadon will be the largest truckload carrier to file bankruptcy in history. The north-south truckload carrier has 2,695 trucks, including 2,000 in the United States, 360 in Canada, and 335 in Mexico. The company is a dominant carrier on the I-35 corridor, running freight from Laredo to the Midwest, with a large concentration in the automotive sector.


From - Freightwaves.com
 
Celadon , biggest bankruptcy in truckload history expected by mid-week



Short seller’s report calling the company “A House of Cards” in April 2017 foretold what was to become of one of the largest truckload carriers

Cel3.jpg



Celadon Group (OTC: CGIP) will file for bankruptcy protection under Chapter 11 no later than Wednesday, December 11, according to internal sources. The Indianapolis-based, publicly-traded trucking carrier employed more than 3,200 drivers and took in more than $1 billion in gross revenue as recently as 2015.

More recent numbers are difficult to come by because Celadon had to restate its financial reporting after mismanagement and a complex accounting scandal that ultimately resulted in former executives being indicted on securities fraud charges yesterday, December 5.

But the imminent bankruptcy’s immediate cause was a technical default on Celadon’s covenants, the agreements between borrowers and lenders that can define requirements for cash reserves and earnings. Celadon entered the week with scant cash in its accounts to continue operations, but was negotiating with creditors Luminis and Blue Torch to secure further financing. Those talks fell through Thursday morning, December 4, when talks between Blue Torch and Luminis broke down over collateral issues. Blue Torch owned 70% of the debt and Luminus owned 30%.

Over-the-road drivers may be at risk of being stranded — our source could not verify that Celadon’s drivers would get home — and should fill their tanks at the earliest opportunity as the company’s fuel cards still work. Celadon’s 3,500 employees could lose their jobs soon.

Many top customers of the company have been notified, in an effort by management to mitigate freight being stranded after a filing. Celadon handles significant volumes of critical automotive freight and told its customers that it did not want their plants to shut down. Sources not associated with the company have also told FreightWaves that FedEx (NYSE:FDX) has stopped loading Celadon branded trailers.

Celadon will be the largest truckload carrier to file bankruptcy in history. The north-south truckload carrier has 2,695 trucks, including 2,000 in the United States, 360 in Canada, and 335 in Mexico. The company is a dominant carrier on the I-35 corridor, running freight from Laredo to the Midwest, with a large concentration in the automotive sector.


From - Freightwaves.com
I would think their drivers would be headed to the barn right now with all the publicity on this. I know I would.
 
Visitor here. At my MI eol barn, we were much slower at the end of Q3 than now. As I work outbound dock prior to night linehaul, I noticed particular freight back in play after GM settled. Our city guys blamed our early price increase. But, it seems, our city guys blame a lot of things. We seem to be rolling well, a little inconsistent, but well now. Funny the YRC ceo (with a 100.9 OR) yakking about the market. Smh. Just another perspective.
 
It always hits us before it hits the rest of the country. Trucking runs this nation.
I heard that the trucking industry sees twice as many recessions as the rest of the industries in the US. I think some of these companies are getting hit so hard is because last year was a very good year for Trucking and some went out and blew there wad got into debt and didn't save for a rainy day and we all know it rains very hard in the trucking industry.
 
I heard that the trucking industry sees twice as many recessions as the rest of the industries in the US. I think some of these companies are getting hit so hard is because last year was a very good year for Trucking and some went out and blew there wad got into debt and didn't save for a rainy day and we all know it rains very hard in the trucking industry.
Funny thing about debt and the economy. We’re all told of the ‘08 bubble. Didn’t take but a minute in the Trump economy to see the billboards. Pontoon boat $X per month; low down 4% mortgage, etc. Guess we don’t learn from our mistakes. Cash, fellas, is king. Debt is death. Pay as you go. You may not be cool now, but you’ll retire sooner & better. :off topic:
 
Funny thing about debt and the economy. We’re all told of the ‘08 bubble. Didn’t take but a minute in the Trump economy to see the billboards. Pontoon boat $X per month; low down 4% mortgage, etc. Guess we don’t learn from our mistakes. Cash, fellas, is king. Debt is death. Pay as you go. You may not be cool now, but you’ll retire sooner & better. :off topic:
If everybody saved their money a recession would be guaranteed
 
Visitor here. At my MI eol barn, we were much slower at the end of Q3 than now. As I work outbound dock prior to night linehaul, I noticed particular freight back in play after GM settled. Our city guys blamed our early price increase. But, it seems, our city guys blame a lot of things. We seem to be rolling well, a little inconsistent, but well now. Funny the YRC ceo (with a 100.9 OR) yakking about the market. Smh. Just another perspective.
And don’t forget he pointed out how thanksgiving was late this year affecting the 4th quarter earnings. That statement is like blaming the hurricanes that hit the Great Lakes area earlier this year.
 
I heard that the trucking industry sees twice as many recessions as the rest of the industries in the US. I think some of these companies are getting hit so hard is because last year was a very good year for Trucking and some went out and blew there wad got into debt and didn't save for a rainy day and we all know it rains very hard in the trucking industry.

And Amazon. As Amazon gets larger and larger. The anti trust pressure grows. They are into everything. Becoming a monopoly. Crushing entire sectors.
 
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