At Cass Information Systems, we sift through the mountains of industry analyses, reports, and forecasts to provide our clients with the most vital data to help them succeed in the complex world of supply chain.
In this month’s newsletter, we are looking at C.H. Robinson’s improved quarterly results, a Logistics Managers’ Index report pointing to the freight recession’s end, record-setting volume at the Port of Los Angeles, and more.
Improved margin on truckload and less-than-truckload freight, higher seaborne services pricing, and a 10.8% dip in headcount resulted in a nearly 30% year-over-year hike in C.H. Robinson Worldwide’ s second-quarter profit, according to Transport Topics, which also credited the improvement to a new operating model instituted by CEO Dave Bozeman, who took the helm in late June 2023.
“Our second-quarter results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model. And although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle,” Bozeman was quoted as telling analysts on the Q2 earnings call.
“Our truckload business grew market share for the fourth consecutive quarter, and we took share the right way, with margin improvement in mind. And our adjusted income from operations increased 32% year over year for the full enterprise,” he said.
C.H. Robinson reported companywide second-quarter profit of $126.26 million, up 29.7% from $97.32 million in Q2 of 2023.
Transport Topics said Bozeman’s business model is rooted in lean methodology to improve the level and consistency of operational execution.
“The Robinson operating model starts with an enterprise strategy map that lays out the key strategies that we need to execute on to drive profitable growth and improve the operating income of the business,” Bozeman told analysts.
Truck drivers who began their careers in the 1970s and ’80s and continue driving today “have witnessed many milestones,” particularly advancements in vehicle technology, according to Jason Cannon, whose resume includes serving as chief editor of the Commercial Carrier Journal and as an honorary duckmaster at The Peabody hotel in Memphis, Tennessee.
“Trucking history is happening all around us,” Cannon wrote.
The July reading of the Logistics Managers’ Index (LMI) marked eight consecutive months of expansion, although the 1.2-point gain from 55.3 in June to 56.6 was seen as moderate and “largely a function of positive movements in the transportation market contrasting with a moderate contraction in inventories and slowing rates of expansion in the warehousing market.”
The report said there could be “potential headwinds from a slowdown in imports or a black swan event, but absent those, and if current trends continue and seasonality holds, it is likely that the recession that has gripped the freight industry is moving towards its conclusion.”
Daimler Truck North America is recalling more than 3,400 Freightliner, Cascadia, and Western Star 2025 models because of potential tie rod failure, which can cause a loss of vehicle steering control.
FleetOwner reported the recall notice said the tie rod in the front axle may contain ball studs that were incorrectly heat treated and thus could break.
Trucking Dive also is reporting that a freight market shift may be at hand.
“Data from Greenscreens.ai shows that contract and spot market rates are holding somewhat flat, often an early indication of a potential strengthening freight market,” Trucking Dive said. “Our data also indicates that minor seasonality trends have returned, indicating a level of normalcy not seen in recent years.”
Trucking groups are urging Congress to pass a $755 million bill to expand truck parking across the country.
“By increasing capacity, we can ensure that truck drivers do not have to choose between parking in a potentially unsafe location, such as a highway shoulder, or continuing to drive while they feel fatigued or are out of available driving hours under federally mandated hours-of-service regulations,” a letter to congressional leaders said.
The letter was signed by representatives of several trucking groups, including the Owner-Operator Independent Drivers Association, American Trucking Associations, and Truckload Carriers Association.
A report from the American Transportation Research Institute showed the operational cost of trucking hit a new high last year at $2.27 per mile.
However, the year-over-year increase from 2022 was less than 1% and was “subdued by declining fuel costs, which decreased 64 cents per mile to 55 cents in terms of average marginal costs,” Trucking Dive said.
The Port of Los Angeles has recorded its best July ever, handling 939,600 twenty-foot equivalent units (TEUs), a 37% jump from the same month in 2023.
“We’ve seen an influx of year-end holiday goods coming across our docks a bit earlier than usual to avoid any delay later in the year,” Gene Seroka, executive director of the Port of LA, said at a media briefing. “These goods — think toys, electronics, and clothing — are arriving at the same time as more typical back-to-school, fall fashion, and Halloween merchandise. An early peak season has helped to boost volumes here in Los Angeles.”
While challenges remain, the trucking industry is poised for gradual recovery and growth, supported by technological advancements, market corrections, and sustained demand in key sectors.
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