FAST FIVE: KeyBanc Warns Investors Of A "Trucking Winter" Amid Anemic Economic Conditions
Weak containerized imports underline the possibility that we won't have a full peak season. For public trucking companies, KeyBanc's team is expecting results for the third quarter and estimates for 2023 to be “weaker.” The team downgraded trucking giants J.B.
Hunt and Schneider. Spot rates have already declined by 30% compared to last year, Fowler and Blake wrote.
Many retailers appear to have prepared for the holiday season earlier this year, anticipating disruptions in importing goods from manufacturing hubs in East Asia. However, the growth in consumer demand has slumped from 2021, and it's left retailers with more stock than they may have anticipated.
Meanwhile, the costs to run a trucking company, particularly fuel spending, have only increased – putting the pressure on small truckers in particular to make ends meet.
Spot rates are now 25%-30% below contract rates, KeyBanc's analysts wrote.