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Johns’ Blog
March 23rd, 2009
Dear Friends,
While last week’s news was dominated by the AIG bonus dispute and the President’s appearance on the Tonight Show, the economy continued to show no significant improvement.
The Federal Reserve decided to print an extra $300 Billion in order to buy long term Treasury notes. This is pushing down mortgage rates and the hope is this helps to stimulate home buyers. From a freight perspective, people who buy homes furnish them so it is hoped that this will help stimulate consumer buying as well.
YRC announced they were closing 11 terminals and the LTL carriers continue to struggle. Most LTL carriers have experienced a double digit decline in tonnage in 2009.
LTL carriers holding their own include Old Dominion, Saia, and FedEx Freight.
Carriers losing market share include YRC and ABF. It is interesting to note the difference in performance between the unionized carriers and non-union.
No strong freight rebound is expected this year. If there is one it will come in the 4th quarter of 2009. The best hope of improvement in LTL carrier profitability would come from the failure of a major player and the disbursement of their business to the remaining carriers.
At Wagner we have been successful in bringing on some new business keeping our IT team busy integrating new customers systems. Whether your need is for distribution center or transportation help, we have capacity in most of our markets.
Have a great week!
John Wagner Jr
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