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C.H. Robinson (CHRW) CEO Expects Freight Scene to Mend in 2H24
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Freight broker C.H. Robinson Worldwide’s (CHRW - Free Report) chief executive officer, Dave Bozeman, believes that the current lackluster scenario with respect to freight is likely to recover in the second half of 2024, per a Bloomberg report.
Bozeman anticipates the betterment of the scene to be driven by a shift toward demand for goods from services. He believes that trucking rates will increase as capacity is likely to shrink. Bozeman was quoted as saying, “We’re starting to see some contraction, but we need to see a lot more.” To combat freight demand weakness, CHRW is focusing on trimming costs and investing in technology to boost efficiency.
Due to the plunge in freight demand, C.H. Robinson’s shares have declined 5.1% over the past six months against its industry’s 4% growth.
Image Source: Zacks Investment Research
Notably, freight demand has shrunk as trade from China weakened. Freight is being delayed and rerouted with cargo ships avoiding Suez Canal because of the dangers from Houthi rebels and capacity restrictions at Panama Canal due to drought. Highlighting the weak freight demand, Cass Freight Shipments Index inched down 1.3% month over month in November. This measure has deteriorated month over month in seven of the eleven months reported so far this year, which confirms the overall declining trend
Air Canada is being aided by an uptick in passenger traffic. Recently, management announced plans to launch a new year-round route between Montreal and Madrid.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand. The Zacks Consensus Estimate for ACDVF’s 2023 and 2024 earnings has witnessed an increase of 32.6% and 41.3%, respectively, in the past 60 days.
Dorian LPG is headquartered in Connecticut. LPG is a liquefied petroleum gas shipping company and a leading owner and operator of modern, very large gas carriers.
Dorian LPG has a market capitalization of $1.8 billion. The Zacks Consensus Estimate for LPG’s 2024 earnings has surged 320.9% in the past 60 days. LPG has a Growth Score of B.
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C.H. Robinson (CHRW) CEO Expects Freight Scene to Mend in 2H24
Freight broker C.H. Robinson Worldwide’s (CHRW - Free Report) chief executive officer, Dave Bozeman, believes that the current lackluster scenario with respect to freight is likely to recover in the second half of 2024, per a Bloomberg report.
Bozeman anticipates the betterment of the scene to be driven by a shift toward demand for goods from services. He believes that trucking rates will increase as capacity is likely to shrink. Bozeman was quoted as saying, “We’re starting to see some contraction, but we need to see a lot more.” To combat freight demand weakness, CHRW is focusing on trimming costs and investing in technology to boost efficiency.
Due to the plunge in freight demand, C.H. Robinson’s shares have declined 5.1% over the past six months against its industry’s 4% growth.
Image Source: Zacks Investment Research
Notably, freight demand has shrunk as trade from China weakened. Freight is being delayed and rerouted with cargo ships avoiding Suez Canal because of the dangers from Houthi rebels and capacity restrictions at Panama Canal due to drought. Highlighting the weak freight demand, Cass Freight Shipments Index inched down 1.3% month over month in November. This measure has deteriorated month over month in seven of the eleven months reported so far this year, which confirms the overall declining trend
Zacks Rank & Key Picks
CHRW currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada (ACDVF - Free Report) and Dorian LPG (LPG - Free Report) . Each stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Air Canada is being aided by an uptick in passenger traffic. Recently, management announced plans to launch a new year-round route between Montreal and Madrid.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand. The Zacks Consensus Estimate for ACDVF’s 2023 and 2024 earnings has witnessed an increase of 32.6% and 41.3%, respectively, in the past 60 days.
Dorian LPG is headquartered in Connecticut. LPG is a liquefied petroleum gas shipping company and a leading owner and operator of modern, very large gas carriers.
Dorian LPG has a market capitalization of $1.8 billion. The Zacks Consensus Estimate for LPG’s 2024 earnings has surged 320.9% in the past 60 days. LPG has a Growth Score of B.