Posted on 05/18/2022 12:29:32 PM PDT by blam
Remember when freight, trucking and logistics data provider Freightwaves warned at the last day of April that a freight recession was imminent and was set to cripple the trucking sector and broader economy (prompted Jim Cramer to declare that “Mr Freightwaves” knows nothing). Well, as always, Cramer was wrong and Freightwaves was right, and today we are seeing nothing short of bloodbath in the trucking and logistics space, where stocks have plunged the most in over six weeks amid weak outlook from several retailers, including Target, which just like Walmart plunged the most since 1987 as inflation crippled its profit margins, and as it warned that fuel and freight costs soared in the first quarter.
How bad is it looking? On the Target earnings call, the COO said the company is now expecting $1 billion in incremental freight costs this year.
The Russell 3000 Index Trucking Subsector (RGUSPTK) dropped over 10% versus a 3.3% drop in the S&P 500 Index, although both are still sliding.
Big decliners on the trucking index include Saia, JB Hunt, ArcBest, Knight-Swift, Werner, Schneider and Old Dominion
The bottom line is that, just as Freightwaves warned two months ago, prices are now so high that demand destruction is crushing margins, with a recession now just a matter of months.
Report: US Gas Prices Could Double Soon, Amid Potential Supply Shortage
Filled my gasoline tank this morning, $4.19 a gallon just west of Mobile.
Why would trucking stocks crash when Target just announced that Truckers are taking $1 billion more from them?
Target admitting they can’t squeeze or outsource to China their trucking needs should be a good thing for American truckers, shouldn’t it?
I wonder who Walmart and Target employees donated to politically.
Freight is killing our company with it being the largest cost we have to incur on a monthly basis. So much co that operations has decided to open more locations in order to be closer to our customers who we service.
Democrats profit only when everyone is miserable.
The stock market often doesn’t reflect reality. I wish more attention were paid to Main Street than the New York Wall Street Casino.
That’s 2/3 of the California price. Count your blessings.
I sort agree. I do think main street is more central to the survival of America than Wall street. But millions of people have their retirement in 401Ks and Roths and such.
My 401K is down about $60,000 in the last year; I know it will go back up eventually (the market always does given enough time and I’m in a boring old index fund), but it’s harrowing and depressing and there’s always the risk that someone will freak out and cash out at the worst possible time (not me).
A very old and very successful stockbroker once told me ‘The market is the only place where people run out of the building when there is a sale on.” But then I have another decade or two before I need any funds.
The $1B isn’t going to the truckers. It’s Biden-gas, Biden-tires, Biden-taxes and the like.
Even the stock market can see things not breaking even. Target won’t continue to pay this, and everyone knows it. Some truckers will retain business, if you want to call that a good thing.
“with a recession now just a matter of months.”
What does that mean?
* months away
* will last months
Crappy writing.
It is here NOW, not months away. And it’s going to last a long time
Target has been hard core lefty for 30 years.
HQ is in Minneapolis
Keep in mind you are buying those funds cheaper.
The problem is, will it come back?
Incremental? More like excremental.
“with a recession now just a matter of months”. more like a matter of days. The DS and Democrats usual playbook plan of blaming white folks and Republicans ain’t working. Sad about the idiot kid who murdered the folks at the grocery store. but I would say racial murder is always with us, both black and white, and people are a hell of a lot more worried about losing everything, including food on the table, than the false flags that the democrats are raising.
Volume. Consumers aren't going to be able to afford the inflated prices, so volume is going to dry up. Think Recession.
Truckers will get more per load, and they will have higher expenses per load. But they won't have as many loads.
The problem is knowing when it hits bottom. My wife and I are sitting on $100,000 waiting for it.
$5.39 for premium this morning in Huntsville.
Communism is shared misery.
Believe it is because demand is slowing due to inflation. Netflix, for example and in addition to horrible (woke) content, gets hammered as people cut back on things they don’t need.
This is another example of a supplier to Apple, Foxconn warning of slowing demand due to inflation:
https://9to5mac.com/2022/05/12/apple-supplier-foxconn-warns-supply-demand/
It’s nice to have a new iPhone or Mac, but you don’t have to buy it.
So if people stop buying anything but essentials from Target, truckers who carry toys, furniture, electronics and the like would get hammered as demand dries up.
Not an economist, but that’s what in the business news.
Take a look at the increase in shipping for a rural family with both parents working. The cost of shipping themselves to their jobs and back each day is crucifying the family.
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