Port strikes seemingly imminent, Yellow shares schedule for continued selloff

Weekly Updates

9/27/2024

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·???????? Parcel – Both FedEx and the USPS are suspending delivery operations in certain areas in Florida as a result of the Hurricane Helene. FedEx has announced suspended or limited service to 350 Florida ZIP codes including Tampa, St. Petersburg, Sarasota and Bradenton.

·???????? LTL – FedEx Freight, which has signaled that it is actively looking to spin off/be purchased from FedEx, has drastically cut capital expenditures in it’s fiscal Q1 YoY. CapEx dropped from $167mm in FQ1 ’23 to $90mm in FQ1 ’24 – a 46% drop.

·???????? LTL – Yellow is targeting a January sale for the 112 remaining terminals in its network. Indications of interest will begin on Tuesday.

·???????? Truckload – The spot market continued to lose steam, but the threat of labor strikes at major ports could cause these seasonal trends to reverse course in the coming weeks. Ratios and rates continued to decline for reefers and vans last week, though the volatile flatbed segment saw an uptick nationally. Here are the truckload modal spot postings and rate comparisons (WoW/MoM/YoY).

o??? Van: Load-To-Truck: -14.9%/-13.2%/-8.4% - Rates: -1.5%/-2.5%/-3.5%

o??? Flatbed: Load-To-Truck:?-1.6%/-17.0%/+19.1% - Rates: -1.3%/-2.8%/-4.2%

o??? Reefer: Load-To-Truck: -13.0%/-8.3%/-8.3% - Rates: -1.2%/-1.5%/-3.7%

·???????? Trucking – Digital freight brokerage Next Trucking has furloughed workers after losing business from Amazon and Tesla – putting the entire company in jeopardy.

·???????? Trucking – The Federal Reserve’s announcement of a .5% drop in the primary interest rate will provide a measure of fiscal relief for trucking organizations that have struggled with a prolonged freight recession.

·???????? Trucking – It is truck driver appreciation week. Drivers have opened up and shared five things that they want the non-truck driver to know.

·???????? Rail – A federal judge has approved a $600mm class-action settlement the Norfolk Southern railroad offered to everyone who lived within 20 miles of East Palestine, OH as restitution for the a derailment in the town on 2/3/23 that spread hazardous chemicals at the site.

·???????? International – With less than a week until a possible strike, the East and Gulf Coast disputes persist. Now the US Maritime Alliance is suing the Longshoremen’s Union, saying that the later has refused to continue negotiations with the former.

·???????? International – The East and Gulf Coast ports are all preparing contingencies in the event of a strike. Supply Chain Dive looks at some of the major ports and how they plan to handle any shutdown.

·???????? International – Some retailers – specifically the American Apparel & Footwear Association (AAFA) – have drafted a letter to President Biden expressing “deep concern” about the level of disruption a strike could have on the ports.

·???????? Supply Chain – Looking for a new technology in your supply chain? Whether it’s TMS, ERP, WMS, AI or whatever the next big thing is, SCMR has some pointers for how organizations can avoid buyers’ remorse when buying new tech.