GLG News by Mr. Jay Thompson, President and General Manager
GLG News is now G+ Insights
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G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.
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Navistar Addressing The Coming Service / Parts Opportunity - With Truckers Keeping ‘Em Longer
February 13, 2009
Navistar Launches Value-Priced Private Label Parts | www.truckinginfo.com
Service parts are a big profit opportunity for OEM’s. Navistar knows why their own and competitor shops don’t do well in the aftermarket - and are doing something “smart” about it.
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Lack of Financing = Poor Outlook For Biz-Jet Sector - So Will Textron Sell Cessna?
February 12, 2009
2 Leave Textron | www.forbes.com
Business is a lot about “People & Trust.” Business travel has always been directly proportional to business spending. It has implications both in airline travel and that on smaller airplanes. Throw in the lack of financing for both new and especially used along with the demonizing of the sector by the Washington DC crowd - and we see production numbers falling to half of what they were. Our colleague Mr. Avai makes excellent points, so I’ll offer comments from our “on-the-ground” perspective.
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JB Hunt & BNSF Intermodal Partnership - Future Is Bright For Them And The Other Players
February 9, 2009
BNSF Railway & J.B. Hunt Celebrate 20 Years of Intermodal Success | www.marketwire.com
Success in the Intermodal sector is especially about SERVICE! A look at Intermodal before and since JB Hunt got into it offers some things to watch when looking at the sector. Our approach has always been to look at history and place it into today’s environment - then make suggestions on how things may look for the future. JB Hunt was and still is one of the innovators! There were many others not noted herein that deserve to be, so I apologize for that in advance.
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TL & LTL Trucking Freight Demand Versus Capacity Issues - Not As Bad As Some May Think
February 5, 2009
Analyst Discusses State of Truckload, LTL | www.truckinginfo.com
While the overall freight market is relatively weak, there are bright spots. Less-Than-Truckload (LTL) is a different story than Truckload (TL) with regional / short-haul adding another dimensions. While the demand-capacity balance is almost never in balance, it must be noted that adjustments occur internal to the numbers. The associated article highlights some comments by John Larkin of Stifel Nicolaus Transportation Research, but they allow for additional comments.
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February 2, 2009
Ex-Continental Express Exec Convicted | www.todaysthv.com
Due diligence is key in all businesses. It is amazing some of snakes-in-the-woodpiles that one finds when looking deep enough. The Continental Express assets recently purchased by Celadon as written about by our colleague David Schneider in early December has a back story that offers good lessons. What this shows is another thing to watch out for in the ongoing merger / acquisition analysis activity.
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January 29, 2009
Con-way Reports Q4 Loss | www.google.com
The Less-Than-Truckload (LTL) segment is in a funk - and will be for the foreseeable future. My very smart colleague John Schultz correctly differentiates LTL versus other segments, along with questions on how the competition will compare. Since we work with (and continually survey) a number of the smaller LTL players too, here are some additional thoughts.
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RigMaster’s Demise Is Good Indicator Of The Auxiliary Power Unit Marketplace Issues
January 28, 2009
Rumors of RigMaster’s demise appear certain | www.landlinemag.com
The auxiliary power unit (APU) market has been a tough one for a variety of reasons. As written in GLG articles over the past couple years, they were faced with ROI, emissions, weight, cost and other issues. One of the big players - Rigmaster - has now apparently ceased operations, which lays out the landscape for others.
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January 23, 2009
Celadon says 2Q08 net income unchanged; revenue down 13.7% | www.etrucker.com
Freight is soft, rates are too, there is still too much capacity, fuel prices are down, credit is tough, etc. Smart operators like Steve Russell at Celadon still made money in the recently reported quarter - and makes comments on how they do it.
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Auto Industry Woes Has Potential Long-Term Negative Effects On Ford, Navistar & Cummins
January 20, 2009
Navistar, Ford Settle Litigation | www.truckinginfo.com
The Navistar-Ford diesel business-relationship is ending in the US at the end of this year. While we understand the business reasons, their diesel-loyalists are up in arms. Dodge Ram Cummins diesel-lover’s are concerned due to Chryslers’ financial issues. Then there is the fuel cost issue. What does that mean for each? Another reason to hit the pause button - or buy something else…
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Correction - Navistar MaxxForce (Cat) 15-Liter Is Back For 2010 - And The Full Squeeze Is On Cummins
January 19, 2009
International Will Have 15-liter MaxxForce Engine for 2010 | www.truckinginfo.com
The referenced article states that the Caterpillar(NYSE:CAT) 15-Liter engine will be rebranded MaxxForce for 2010 - and offered along side the MAN-partnered 11 & 13 Liter models. This is good news for Caterpillar and smart for Navistar - and not so good news for Cummins. The correction is in the first sentence of the 1/12/09 analysis by the same title and was intended to portray “no” SCR instead of “all.”
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Another Non-Urea SCR Emissions Solution Underway - Good News For Marketplace
January 15, 2009
Eaton to Use Clean Diesel Technology in No-Urea Aftertreatment System | www.truckinginfo.com
Selective Catalyst Reduction (SCR) non-urea-based options continue to be developed to be offered with urea-based ones. This type innovation coupled with a good understanding of the marketplace could be real opportunity.
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Navistar MaxxForce (Cat) 15-Liter Is Back For 2010 - And The Full Squeeze Is On Cummins
January 12, 2009
International Will Have 15-liter MaxxForce Engine for 2010 | www.truckinginfo.com
The referenced article states that the Caterpillar 15-Liter engine will be rebranded MaxxForce for 2010 - and offered along side the MAN-partnered 11 & 13 Liter models. This is good news for Caterpillar and smart for Navistar - and not so good news for Cummins.
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Update - 2009 North America Freight Market & Truck Capacity Adjustments Continue
January 5, 2009
FTR Forecast Reflects Downward Revision | www.truckinginfo.com
Insurance numbers are a good way to assess truck capacity in real-time. Our colleague Mr. Schneider asked some good follow-up questions in his comments on my 12/30 article titled “Leading Indicator - 2008 North America Freight Market & Truck Build Numbers Down - 2009 Predicted To Be Worse With 2010 Not Much Better.” Putting on my insurance hat (I’m licensed to work with industry), I’ll try to generalize the info and comment in the following - but recognize the terms “generalize and trucking” gets one in trouble.
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December 30, 2008
FTR Forecast Reflects Downward Revision | www.truckinginfo.com
Premier forecasting firm - FTR Associates - is predicting declining freight and truck build numbers through 2010. They say we are experiencing a 4-6% (annualized) fall in GDP during this quarter - added to a decline in the three previous quarters. The freight market is forecast to fall for seven consecutive quarters, bottoming out in the third quarter of 2009 at more than 9% below the year-end 2007 level. Here are some thoughts.
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European Truck Sales Continue To Slide - Finally Following The Market On This Side Of Pond
December 19, 2008
European Truck Sales Slump 28% as Demand Wanes ‘In All Markets’ | www.bloomberg.com
European truck sales were a bright spot in the global truck sales marketplace over the last year or so, but will lag any upswing we will see in the North American market due to a variety of reasons. Manufacturers Worldwide are laying off workers, as noted in previous articles.
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California Emissions Mandates - Un (But) Believably Complicated - And Affecting More Than Trucking
December 16, 2008
Air Board OKs Nation's Toughest Diesel Rules | www3.signonsandiego.com
The NOx and Particulate Matter (PM) issues are real, but are they being addressed logically and fairly? The California approach is as expected - and political, nonsensical and costly. While the lawsuits will be flying from a variety of parties for years, the trucking and bus industries both in and outside of the State have started planning. One I am principal stockholder in is pulling California from the 2009 IRP truck registrations - and so are others.
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December 12, 2008
Transportation | www.zacks.com
The referenced Zacks’ article notes that the median year-to-date stock price has declined for all industries in the Zacks’ transportation analysis. This includes water shipping down 55.6%, airlines down 52.1%, equipment / leasing down 37.2%, air freight down 36.1%, rail down 23.9% and trucking down only 19.1%. This compares to a S&P 500 39.5% stock decrease. A look at sectors and trying to compare segments has challenges. While the numbers allow an opportunity for further analysis, they often don’t lead where one thinks. Here are some thoughts.
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December 8, 2008
Painful strike, trying time for a company divided | www.pnwlocalnews.com
In the atmosphere of a slowing economy, a changing Less-Than-Truckload (LTL) marketplace, continued problems with benefit funding and union concessions at YellowRoadway - YRCW, what does that mean for the smaller fish in the pond like Oak Harbor Freight Lines? My colleague Mr. Schultz wrote in September of the Teamster strike at Oak Harbor, but negotiations are not moving - but freight is today.
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A Basic Question - Is There Room In The LTL Segment For The YRC Of Today?
December 2, 2008
YRC to Get Concessions? | tdu.org
The analysis of our colleagues gives us a good look at the expense side of the YRC segment, but how about the freight demand versus availability capacity side? This raises the real question of “what the right amount of capacity” for the foreseeable future? Then who is better able to address it?
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November 25, 2008
ABF to Buy SCR Trucks for 2010, Exec Says | www.ttnews.com
ABF Freight said in a recent press conference that they will only buy Selective Catalyst Reduction (SCR) technology for 2010. All US manufacturers will be going with SCR with the exception of Navistar. They are utilizing advanced Exhaust Gas Recirculation (EGR) along with emissions trading. In the world of follow the leader, many potential buyers are watching what the big fleets are doing.
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