Talking Transports

Product tankers are currently at the beginning of a multiyear rate cycle as a result of a lack of new vessels coming on line and an outlook for demand growth. Pricing has gotten a boost from longer ton-miles created by the crisis in the Red Sea and Russia’s war in Ukraine. In this Talking Transports podcast, Mikael Skov, Hafnia’s co-founder and CEO, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his insights on product tanker markets. Skov also talks about how the company is navigating new emissions regulations facing the global shipping industry, as well Hafnia’s fleet, use of cash, demand trends, vessel prices, its use of cash and how his mom nudged him into a successful career in shipping.See omnystudio.com/listener for privacy information.

Second-quarter earnings reports could show that the worst is behind freight transportation and logistics companies that may see muted progress heading into 2H. In this episode of Bloomberg Intelligence’s Talking Transports podcast, Evercore ISI’s senior managing director and surface and marine transportation equity analyst Jon Chappell joins Lee Klaskow, BI senior transportation and logistics analyst, to share his thoughts on what investors could expect from quarterly reports and for the rest of the year. Market disruptions like the Red Sea crisis and failure of Yellow have benefited tanker and less-than-truckload companies, which has added to his positive pricing thesis. He also talks about growth prospects for intermodal, nearshoring and some of his favorite names in his coverage universe.See omnystudio.com/listener for privacy information.

Ryder System has its sights on a new long-term return-on-equity target in the low-20% range, up from its previously obtained goal in the high teens. Improved returns will be driven by high-single-digit revenue growth coupled with productivity gains. Ryder has plenty of runway for organic growth, given the outsourcing opportunities in the markets it serves. In this Talking Transports podcast, Robert Sanchez, Ryder System’s chairman and CEO, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to discuss some of the key takeaways from its recent investor day and how technology investments are optimizing transportation networks and providing better client interactions. Sanchez also talks about the company’s sustainability initiatives, autonomous trucking and some recent acquisitions. He shares how he got into transportation, Miami Hurricanes football and one of his favorite founding fathers.See omnystudio.com/listener for privacy information.

The supply-chain dislocations created by the pandemic thrusted logistics into everyday news and conversations. This increased visibility has attracted more students to supply-chain and logistics programs at universities across the country. In this Talking Transports podcast, Terry Esper, Ph.D. and full professor at the The Ohio State University’s Fisher College of Business, joins Lee Klaskow, Bloomberg Intelligence’s senior transportation & logistics analyst, to discuss the trends facing the freight markets in and outside the classroom. Dr. Esper also talks about artificial intelligence and other technology-driven productivity tools, decarbonization and his love for bourbon, football and Detroit. See omnystudio.com/listener for privacy information.

Schneider National appears well positioned once the current trough in the freight cycle gives way to growth. There’s a lot of uncertainty over timing for when rates will inflect positively, but there are some encouraging signs. In this Talking Transports podcast, Mark Rourke, Schneider National’s president and CEO, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his insights into the truckload, intermodal and brokerage markets. Rourke also talks about the company’s sustainability initiatives, the driver market, cross-border opportunities, regulations, rail service and life as a “cheesehead.”See omnystudio.com/listener for privacy information.

Visibility and flexibility are becoming increasingly important for supply chains for both shippers and capacity providers. The growth in machine learning and artificial intelligence is helping to optimize shipments and rates as well as take out costs and increase productivity at freight forwarders. In this episode of Bloomberg Intelligence’s Talking Transports podcast, Ryan Petersen, Flexport’s CEO, joins Lee Klaskow, BI’s senior transportation & logistics analyst, to discuss the company Petersen founded in 2013 and its role in the technology revolution changing the freight-transportation and logistics markets. Petersen talks about the state of the ocean and air-freight markets, recent acquisitions into adjacent businesses and how Flexport was born out of the frustrations he faced as an importer.See omnystudio.com/listener for privacy information.

Crude and product tanker operators look well positioned given the positive rate backdrop created by increased consumption and low orderbook, dislocations from Russia’s war in Ukraine and the crisis in the Red Sea, which have soaked up additional capacity from longer voyages. In this Talking Transports podcast, Lois Zabrocky, International Seaways president and CEO, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share her insights into the tanker markets. Zabrocky also talks about how Seaways is navigating new emission regulators facing the global shipping industry. In addition, she discusses Seaways’ fleet, demand trends, the company’s use of cash and leaving Iowa for a career on the high seas.See omnystudio.com/listener for privacy information.

Shippers with time-sensitive, perishable or high-value freight look to expedited transportation markets to ensure on-time delivery of critical shipments. In this Talking Transports podcast, Nicole Glenn, Candor Expedite’s founder and CEO, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share her insights into this growing and often overlooked part of the freight market. She also talks about the growth in recurring business and Candor’s new food-chain division, which uses reusable cold packaging and provides constant temperature monitoring. Glenn also shares the challenges she faces as an entrepreneur, what motivates her to expand the businesses and how a chance meeting changed her career trajectory.See omnystudio.com/listener for privacy information.

The first quarter may have marked the bottom for freight markets, even as the outlook remains mixed with a high degree of uncertainty. In this Talking Transports podcast, Ravi Shanker, Morgan Stanley’s managing director and lead analyst for North American freight transportation and airlines, joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to share his takeaways from 1Q earnings and his longer-term outlook. Shanker expects the truckload market cycle will turn on increased demand over an acceleration of supply leaving the market as inventories are restocked. He also talks about precision-scheduled railroading, focusing beyond operating ratio for railroads, parcel markets, airlines service, less-than-truckload valuation and how a quote in Car and Driver magazine changed his life.See omnystudio.com/listener for privacy information.

New and pending shipping regulations are increasing the complexity and costs to operate in the dry-bulk market, resulting in higher barriers to entry. This could drive market consolidation as carriers look to build scale. In this Talking Transports podcast, Cetus Maritime Chief Operating Officer Olivia Lennox-King joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to talk about the state of the dry-bulk and handysize markets. Increased ton-miles from market dislocation, like those in the Red Sea, coupled with a low order book, should bode well for Handy-size rates this year. Lennox-King also talks about how the sector will most likely look to meet global standards to reach net-zero greenhouse-gas emissions by 2050.See omnystudio.com/listener for privacy information.

A more competitive bid season, an irrational spot market and severe January weather took a toll on truckers this year. More capacity will need to exit the market before freight rates and earnings can inflect positively for truckload carriers. In this Talking Transports podcast, American Trucking Associations’ (ATA) Chief Economist and Senior Vice President Bob Costello joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to talk about the state of the truckload and less-than-truckload segments and what lies down the road for the trucking industry. The market has become more volatile, and a turnaround will likely happen quicker than in previous cycles, Costello says. He also talks about autonomous trucking, electric trucks, new emission standards and driver availability.See omnystudio.com/listener for privacy information.

Assessing and mitigating geopolitical risks is becoming more important for supply chains. In this Talking Transports podcast, Eurasia Group’s president and founder Ian Bremmer joins Lee Klaskow, Bloomberg Intelligence’s senior transportation and logistics analyst, to share his perspective on the threat of an escalating conflict between Israel and Iran as well as hot spots around the world that have an impact on global trade. Increased tensions between China and its neighbors in the South China Sea could have ripple effects on trade and may be more of a peril for regional stability than a conflict with Taiwan. Bremmer also talks about artificial intelligence, the rise of populism, social media’s impact on the political process and what a change in the administration in the US might mean for businesses. See omnystudio.com/listener for privacy information.

There’s plenty to unpack this year from road, rail, ocean and air freight markets as the 1Q earnings season kicks off with J.B. Hunt on April 16. In this Talking Transports podcast, Barclays’ director of airline and transportation research Brandon Oglenski joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to share his thoughts about the quarter and his longer-term outlook. With changes underway at Union Pacific, Norfolk Southern and Canadian Pacific Kansas City, Oglenski says this will be the year of the railroad. He also talks about precision schedule railroading, less-than-truckload prospects, the US Postal Service’s shift toward UPS and all of the freight that’s piling up in the West Coast ports. See omnystudio.com/listener for privacy information.

Supply chain dislocations, low orderbook and low-single-digit demand growth for oil bodes well for crude tanker rates over the coming years. In this Talking Transports podcast, DHT Holdings President and CEO Svein Moxnes Harfjeld joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the outlook for the very large crude carrier (VLCC) tanker market. The changes in freight flows from Russia’s war with Ukraine has had a bigger impact on rates then the crisis in Red Sea, as VLCC ships don’t traverse the Suez Canal when fully loaded. Moxnes Harfjeld also talks about DHT’s approach to lowering emissions, the shadow fleet, changes in global crude demand and life before shipping as a drummer in the band Small Affairs.See omnystudio.com/listener for privacy information.

Better service and reduced rate volatility are just some of the benefits to becoming a shipper of choice. In this Talking Transports podcast, John Janson SanMar’s Vice President of global logistics, joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss how relationships with trucking, intermodal, parcel and ocean partners are critical for managing his supply chain. SanMar has moved some imports away from the East Coast to avoid potential disruption due to pending labor negotiations. Janson also talks about bid season across modes of transportation, railroad service, inventory destocking, sustainability, near-shoring trends and how he pushed his dream of being a placekicker for the Chicago Bears aside for a career in logistics. See omnystudio.com/listener for privacy information.

Shippers are increasingly looking for freight forwarders to drive more-resilient networks, which are under strain from risks in the Red Sea, low water levels in the Panama Canal, port labor negotiations and a trend toward derisking supply chains. In this Talking Transports podcast, DHL Forwarding’s CEO of the Americas Tim Robertson joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to discuss how DHL is positioning in a rapidly changing environment. A focus on high-growth segments like health care and small- to medium-sized shippers should fuel organic expansion at one of the largest forwarders. Robertson also talks about technology-fueled productivity investments, market consolidation, near-shoring trends and how a chance meeting got him into logistics.See omnystudio.com/listener for privacy information.

A focus on value-added verticals, like life sciences and over-dimensional markets, has helped mitigate the weak freight backdrop for some North American freight brokers. In this Talking Transports podcast, Tucker Company Worldwide CEO Jeff Tucker joins Lee Klaskow, Bloomberg Intelligence senior transportation and logistics analyst, to discuss the broker’s more resilient business model and how the company may be positioned for growth when the freight cycle turns. Trucking conditions could improve as the market appears to be at equilibrium, with more capacity slowly leaving the market and demand growth likely around the corner. Tucker also talks about technology, the bid season, sustainability and the importance of therapy and communication when running a privately held business with his brother.See omnystudio.com/listener for privacy information.

The exit of Yellow Corp. from the less-than-truckload (LTL) market last summer helped mitigate weak freight demand and provided a tailwind for pricing. In this Talking Transports podcast, Old Dominion Freight Line’s CFO Adam Satterfield joins Lee Klaskow, Bloomberg Intelligence senior freight transportation & logistics analyst, to discuss the outlook for LTL markets and how the company is positioned to take on more freight demand when it starts to inflect upward. The company’s industry-leading service levels — measured by low cargo claims and high on-time deliveries — has allowed it to drive rates higher. Tonnage growth should come at high incremental margin and could drive a sub-70 operating ratio over time.See omnystudio.com/listener for privacy information.

Transport management teams appear cautiously optimistic that freight demand will bounce off the current state of malaise. In this Talking Transports podcast, Citi Research Managing Director and lead equity analyst of air freight, surface and marine transportation Christian Wetherbee joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss his takeaways from Citi’s industrial conference in Miami last week. J.B. Hunt’s management noted increased competition early on during its intermodal bid season. Norfolk Southern’s presentation left the audience wanting more details about how its strategy is better than the one proposed by activist Ancora. Wetherbee also talks about how the trucking, railroad, ocean and parcel markets are shaping up heading into March.See omnystudio.com/listener for privacy information.

The crisis in the Red Sea, low water levels in the Panama Canal and other supply-chain dislocations have increased the importance of enabling shippers to know where their freight is. That helps ensure customers’ needs are met and production shutdowns avoided. In this Talking Transports podcast, Project44’s founder and CEO Jett McCandless joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the importance of supply-chain visibility and how the company is leading the digitalization of freight markets. McCandless also talks about acquisitions, investing for growth and leveraging its datasets with AI to empower customers, as well as the company’s journey toward going public and getting an enterprise value of over $100 billion.See omnystudio.com/listener for privacy information.

The low orderbook, demand growth and longer ton-miles created by supply-chain disruptions bode well for the health of the dry-bulk industry. In this Talking Transports podcast, Seanergy Maritime Holdings Chairman and CEO Stamatis Tsantanis joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the opportunities and challenges facing the global dry-bulk shipping market. A prolonged crisis in the Red Sea could drive Capesize rates and profit higher for owners in the coming months. One of the biggest challenges will be the industry’s ability to meet the International Maritime Organization’s goals for zero emissions by 2050 through a transition toward greener fuels, he says. Tsantanis also talks about the impact of Russia’s war on Ukraine and China’s demand for raw materials.See omnystudio.com/listener for privacy information.

The worst appears to be behind transportation markets, and it’s just a matter of time before the freight recession gives way to growth. In this Talking Transports podcast, Deutsche Bank’s managing director in charge of transportation and shipping research, Amit Mehrotra, joins Bloomberg Intelligence senior transportation & logistics analyst Lee Klaskow to discuss the outlook for freight markets and which companies have secular tailwinds. He’s looking for companies with opportunities for outsized demand growth or turnaround-operations stories. J.B. Hunt, Saia, Norfolk Southern, Union Pacific and UPS are some of Mehrotra’s favorite freight stocks in 2024. He also talks about precision-schedule railroading, intermodal trends, the Red Sea crisis and share opportunities for less-than-truckload carriers.See omnystudio.com/listener for privacy information.

Less-than-truckload (LTL) pricing power and share gains from the demise of Yellow last year could position carriers for earnings growth and margin expansion in 2024. In this Talking Transports podcast, Saia President and CEO Fritz Holzgrefe joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the outlook for the LTL markets and the company’s expansion prospects. Improved service and increased reach has helped Saia offset inflationary pressures, with an 8.7% increase in contract renewals in 4Q. It plans to open 15-20 new terminals to better serve customers and provide a springboard for organic growth. Holzgrefe also talks about how the company is investing in facilities, tractors, trailers and technology to position for expansion.See omnystudio.com/listener for privacy information.

The worst appears behind the freight transportation market and there are early indications that 2024 will be better than last year. In this Talking Transports podcast, NFI Industries’ Vice Chairman and President Ike Brown joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss where we are in the freight cycle and how the company is positioned for growth in the dedicated, drayage, warehousing and brokerage segments. NFI’s businesses are facing rate and margin pressures given the weak freight backdrop. Being a private company allows NFI to invest through the cycle to be better positioned for when growth returns. Brown also talks about electric trucks, technology as a productivity tool, freight flows and what’s it like to manage a family operation with his two brothers and their kids.See omnystudio.com/listener for privacy information.

Freight transportation and logistics companies may face lower costs to attract and retain employees now that tighter labor conditions are loosening, which could help margins in 2024. In this Talking Transports podcast, CS Recruiting’s CEO and founder Charlie Saffro joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss how the labor markets have evolved since the pandemic and what companies can expect this year. The freight economy has been weakening since 2022, as illustrated by the closing of Yellow, a large less-than-truckload carrier, and technology-driven freight broker Convoy, last year. This is leading to weaker labor conditions relative to the national market. CS Recruiting is an executive search firm specializing in the supply-chain, logistics and transportation industries.See omnystudio.com/listener for privacy information.

US railroads may still be too short staffed to continue improving service, especially as volumes recover this year. In this Talking Transports podcast, the Surface Transportation Board (STB) Chairman Martin Oberman joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the state of the railroad industry from the regulator’s perspective. Lower head counts from the transition to precision-scheduled railroading and furloughs in 2020 contributed to poor service and supply-chain dislocations during the pandemic, Oberman says. Improving service is imperative for railroads to win share back from trucks and also for the overall health of the economy. Oberman also discusses reciprocal switching, industry consolidation and his pending retirement from the STB.See omnystudio.com/listener for privacy information.

Increased attacks on vessels in the Red Sea are among a number of dislocations and challenges facing the global marine-shipping industry in 2024. In this Talking Transports podcast, Scorpio Tankers President and Director Robert Bugbee joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss the state of the product-tanker industry. Ton-miles were already rising amid supply-chain changes and the impact of the war in Ukraine and low water levels in the Panama Canal. A low order book bodes well for product-tanker rates into 2025, even after the near-term benefits from ships diverting around the Cape of Good Hope, Bugbee says. He also discusses Scorpio’s fleet, its use of cash and where ship technologies are changing to meet long-term emissions targets.See omnystudio.com/listener for privacy information.

Improving service levels will be critical for the railroad industry to win market share from other modes. In this Talking Transports podcast, Association of American Railroads (AAR) President and CEO Ian Jefferies joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss how the railroad industry is focused on providing a safer and more predictable service, which along with infrastructure investments could help capture share from trucking. This might help the industry surpass peak intermodal volume reached in 2018. Railroads have changed their approach to labor based on the lessons learned from the pandemic era. Jefferies also discusses how proposed regulations could affect railroads, and the benefits from precision scheduling.See omnystudio.com/listener for privacy information.

ArcBest celebrated its centennial this year, along with gains in the less-than-truckload market. In this Talking Transports podcast, ArcBest’s Chairman, President and CEO, Judy McReynolds joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss how its LTL business is mitigating softer demand with share gains following Yellow’s bankruptcy, which is also boosting prices for the service and providing opportunities to expand capacity. Growth may come organically and through acquisitions, which ArcBest has used to transform into an integrated-logistics company. McReynolds also talks about the path to 2025 targets, how ArcBest’s focus on productivity has helped offset inflation’s impact on margins and where electric vehicles may fit into its network.See omnystudio.com/listener for privacy information.

Werner Enterprises is facing better times now that the truckload market appears near equilibrium, says company President and CEO Derek Leathers. In this Talking Transports podcast, Leathers joins Lee Klaskow, Bloomberg Intelligence senior transportation & logistics analyst, to discuss peak season demand and what will drive spot and contract rates to inflect positively. In addition to cyclical trends, dedicated and cross-border demand will fuel organic earnings growth longer term. Leathers also talks about alternative routes to drive down emissions at Werner and the broader trucking market, given the current challenges associated with electric trucks. They also cover the driver market and inflationary pressures facing the transportation provider.See omnystudio.com/listener for privacy information.

Robust shipments from southern China are driving peak volume growth in the Americas that could reach 16% this year, according to DHL Express Americas’ CEO Mike Parra. In this Talking Transports podcast episode, Parra joins Bloomberg Intelligence senior analyst Lee Klaskow to discuss how peak season is shaping up. Gains are coming from deliveries of fashion, auto parts, technology and gaming products, and Parra sees long-term growth opportunities from a gradual move away from China into northern Mexico. Airfreight rates may find support at current levels until the Chinese New Year, which bodes well for earnings at DHL Express and competitors.See omnystudio.com/listener for privacy information.

PAM Transportation Services is well positioned for when the North American truckload rate cycle begins to turn, according to company President and CEO Joe Vitiritto. In this Talking Transports podcast episode, Vitiritto joins Bloomberg Intelligence Senior Transportation & Logistics Analyst Lee Klaskow to discuss the outlook for truckload rates and demand. The proliferation of brokers, private fleet growth and excess capacity at for-hire carriers have created slack capacity that has been slower to exit during this rate cycle, keeping rates lower for longer. Rates may gradually improve next year on demand growth and more higher-cost capacity leaving the market. Vitiritto also discusses how the company intends to grow organically and through acquisitions.See omnystudio.com/listener for privacy information.

Canadian National should generate strong incremental margins once volume growth returns, now that its operations are optimized following its pivot back to scheduled railroading, according to the company's president and CEO, Tracy Robinson. In this Talking Transports podcast episode, Robinson joins Bloomberg Intelligence Senior Analyst Lee Klaskow to discuss how the railroad is poised for growth and set to remain on track to reach its 2024-26 EPS target. The focus on running a scheduled network should improve service and safety metrics as well as productivity and margins, while positioning CN for growth. Robinson also discusses technology, regulations and where growth will come from. This episode was originally released on Nov. 16.See omnystudio.com/listener for privacy information.

Shippers can lower costs, increase productivity and provide a better customer experience by outsourcing warehousing and distribution functions, according to Neil Shelton, GXO's chief strategy officer. In this Talking Transports podcast episode, Shelton joins Bloomberg Intelligence Senior Analyst Lee Klaskow to discuss these benefits, in addition to how automation can fuel improved order-fulfillment accuracy and free up working capital for shippers. GXO stands to benefit from secular growth opportunities from outsourcing and reverse logistics, which has created a strong pipeline of business for the contract logistics provider. This episode was originally released on Oct. 24, 2023. See omnystudio.com/listener for privacy information.

Investments in technology should drive productivity and profitability, as well as be a differentiator at RXO, according to CEO Drew Wilkerson. In this Talking Transport podcast episode, Wilkerson joins Bloomberg Intelligence Senior Analyst Lee Klaskow for an in-depth discussion about how technology can provide RXO with a competitive advantage. He also sees green shoots emerging, which may point to better trucking supply-demand dynamics. Wilkerson also comments on issues like trucking capacity, M&A, profitability and life after the spinoff from XPO. This episode was originally released on Oct. 19, 2023.See omnystudio.com/listener for privacy information.

Share gains following Yellow's shutdown will be a huge tailwind for less-than-truckload (LTL) carriers in the near term and should help keep pricing structurally disciplined over the longer range, according to Christian Wetherbee, Citi Research managing director and lead analyst on air freight, surface and marine transportation. In this Talking Transports podcast episode, Wetherbee joins Bloomberg Intelligence Senior Analyst Lee Klaskow for an in-depth conversation about which subsectors and companies Wetherbee sees as currently well positioned, including a discussion of FedEx, XPO, Union Pacific and JB Hunt. This episode was originally released on Oct. 17, 2023.See omnystudio.com/listener for privacy information.

The war in Ukraine has redrawn trade lanes, which has been a positive for dry-bulk carriers, according to Hamish Norton, Star Bulk's president. In this Talking Transports podcast episode, Norton joins Bloomberg Intelligence Senior Analyst Lee Klaskow to discuss the opportunities and challenges facing the global dry-bulk shipping market. One of the biggest challenges will be the industry's transition toward greener fuels to meet global emission standards. He also comments on issues like the order book, fuel, slow steaming and the outlook for demand. This episode was originally released on Oct. 11, 2023. See omnystudio.com/listener for privacy information.

The transition to lower emissions might be a bumpy road for the trucking industry according to Andrew Boyle, vice chairman of the American Trucking Associations (ATA) and co-president of Boyle Transportation. In this episode of the Talking Transports podcast, Boyle joins Bloomberg Intelligence senior analyst Lee Klaskow for an in-depth discussion about the challenges associated with the transition to electric trucks. They also discuss other obstacles facing the North American trucking market well as the outlook for the industry.See omnystudio.com/listener for privacy information.