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.
Thanks.
That was me in the early/mid 70's sitting in gas lines.
$4.35 to $4.89 here in Winnebago County.
A lot of the trucking companies are moving their trailers via rail.
Because a great many of their TV commercials portray white males such as yourself as either knaves, trolls, or drooling idiots who need to be saved by their wimmenfolk.
I live close by where I work but my wife is 20 miles away from hers. We are averaging over $100 a week for gas now. Used to be less than $40.
Gas is still going up. My wife is about to retire and that will help on gas but less money from her retirement really makes the budget harder and harder.
I LITERALLY HATE anyone who voted for Biden now. I refuse to associate with anyone, outside of work, who voted for him.
We are retired and our retirement pay are more than enough to cover our bill. In fact, we are saving about $1,100/month.
We will probably put some into a money market fund and the a growth and income mutual fund when the market hits bottom.
You have a name that reminds me of the UHF service on the west coast.
Enough of that.
I believe that there could be a huge upswing in the market.
It will wait until the mid-terms. It is just a reversal of fortune that cycles global.
I call it “Make Hay while the grass is green”.
Nice.
I wish you both much success!
Crazy times.
True. That’s about my maximum timeframe, being 60. Don’t think I’ll need my 401K before about 80 (although the RMD can hurt me nonetheless).
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