Trans and Logs Ind Briefing Jan 10 08

0 %
100 %
Information about Trans and Logs Ind Briefing Jan 10 08

Published on March 12, 2008

Author: CBrodersen


Transportation and Logistics Industry Briefing: Transportation and Logistics Industry Briefing David I. Beatson, CEO Ascent Advisors, LLC January 10, 2008 The Basic Industries Group, LLC Agenda: Agenda Speaker Background Types of Firm Asset Asset-Light Non-Asset Industry Trends Differentiators David Beatson - Background: David Beatson - Background Background in Transportation and Supply Chain VP Sales, CF AirFreight VP Cargo Sales, American Airlines CEO Emery Worldwide Chairman and CEO Circle International CEO North America, Panalpina CEO GlobalWare Solutions Beatson Background (cont): Beatson Background (cont) Asset and non-asset based companies Airlines Forwarders Integrator Supply Chain – Physical/Digital Fulfillment Domestic and international Senior operating, financial and marketing executive positions Introduction: Introduction Overview of the Transportation and Logistics Industry Recap of various components of the industry Discussion of broad range of companies in the industry Topics of Discussion: Topics of Discussion Types of firms Asset Based Ocean Carriers TL LTL Airlines Integrators Asset Light Intermodal Carriers Specialized Trucking Carriers 3PLS Non Asset Freight Forwarders Truck Brokers Industry Trends: Industry Trends Globalization Outsourcing Full service 'end to end' solutions Consolidation Increasing emphasis on IT solutions Asset Based Companies: Asset Based Companies Committed Assets to a particular transportation mode High fixed costs Need to keep the assets in motion in all economic cycles Typically selling a single solution Examples of asset-based companies: Examples of asset-based companies TL JB Hunt Hub Group Pacer LTL Con-way YRCW Air Freight/Integrators FedEx UPS DHL Asset-Based SWOT Analysis: Asset-Based SWOT Analysis Strengths Well defined market Significant barriers to entry Ability to capture strong market position Leverage assets for borrowing base Weaknesses High fixed costs Difficult to transition through economic cycles Lack of agility Organized labor issues Asset-Based SWOT: Asset-Based SWOT Opportunities Geographic expansion New vertical market expansion Grow as customer base expands Differentiate services Threats Economic cycles Significant competition Government regulation Cost of fuel and other major operating expenses Asset-Light Firms: Asset-Light Firms Asset-light companies utilize the assets of other players in the industry Leverage those assets to service customers Employ some assets including leased warehouse space or moving equipment Gain significantly higher valuations due to reduced risk and exposure Utilize software and systems to differentiate services Asset-Light Examples: Asset-Light Examples Specialized LTL Forward Air Landstar Intermodal Companies Pacer International Hub Group Asset-Light SWOT Analysis: Asset-Light SWOT Analysis Strengths Minimize employed capital Very nimble and flexible Variable cost operations Focus on specific needs of clients Weaknesses Rely on assets of others to serve clients More difficult to define services Few barriers to entry Competition from asset based partners Asset-Light SWOT Analysis: Asset-Light SWOT Analysis Opportunities Differentiate services by vertical market Add complementary services Geographic expansion Ability to become a true supply chain partner Threats Intrusion in core market by asset based competitors Overall business cycles Governmental regulation Non-Asset Firms: Non-Asset Firms Completely non-asset based Utilize assets of other carriers High return on employed capital Leverage information technology to provide customer solutions Examples of Non-Asset Based Firms: Examples of Non-Asset Based Firms Freight Forwarders Expeditors UTi Kuehne and Nagel Panalpina EGL Brokers CH Robinson Non-asset SWOT Analysis: Non-asset SWOT Analysis Strengths Complete flexibility Virtually no capital commitment Ability to be totally focused on needs of clients Weaknesses Intrusion by asset based and asset light companies Clients moving work in house Dependant on the assets of others Non-asset SWOT Analysis: Non-asset SWOT Analysis Opportunities Add new vertical markets Geographic expansion Sell more services to existing clients Threats Competition from asset based firms Government regulation Industry Cycles Industry Differentiators: Industry Differentiators Vertical Market Approach Strong IT Solutions End-to-end seamless solutions Global Multi-modal Ease of use Complete Visibility Future Trends: Future Trends Continued Globalization Outsourcing increases Industry consolidation 'One Stop' seamless solutions Global/Multimodal Strategic partnerships/alliances Outlook/Issues for 2008: Outlook/Issues for 2008 TL/LTL Challenging market driven by slowing economy and excess capacity November 07 tonnage up 3.3% off easy comparison 2008 H1 likely to be lackluster/flat or down slightly Outlook/Issues for 2008: Outlook/Issues for 2008 TL/LTL Labor costs will rise with Teamster contract at UPS (+2.7% CAGR) ABFS and YRCW will follow early in 2008 Federal Motor Carriers Safety Association Interim Hours of Safety (HOS) – keeps driving time at 11 hours Alleviates changes in some states for 10 hours Outlook/Issues for 2008: Outlook/Issues 2008 International Freight Forwarding/CHB TransPac Market soft Down 2% last 3Qs of 2007 Asia – Europe strong – up 15% Ocean rates on the rise, offset by higher carrier rates, esp. Asia to Europe Carriers may extend Peak Season Pricing through February 08 due to strong volumes Outlook/Issues for 2008: Outlook/Issues 2008 International Freight Forwarding/CHB Stable airfreight growth - Asia and Europe Continued weakness - North America November y-o-y growth: Asia +4% (+4% 3Q), Europe +4% (+4% 3Q), and N. America -4% (-4% 3Q) Pending DoJ investigation into FSC issue (EXPD, EGL, UTIW, Panalpina, etc, Pending Nigerian DoJ investigation at Panalpina Outlook/Issues 2008: Outlook for 2008 Integrators UPS New 5 year contract with Teamsters FedEx says LTL market very challenging, especially long haul (shipments down 6%, but yields up 4% due to longer haul) FedEx initiating a 5.5% GRI effective 1.14.08 Commensurate increase in National LTL rates Fairly early to announce Will others follow?? Outlook/Issues 2008: Outlook/Issues 2008 Carriers Volumes for most carriers will be soft at least for Q1 and Q2 Fuel increases likely as pressure will be strong to reduce rates in most markets Trucking market especially soft due to capacity issues and increased shift in volumes to truck brokers Outlook for 2008: Summary Growing dynamic industry Growth propelled by global economy Non-asset players will continue to command best multiples of earnings Smart asset-based players will utilize their essential assets and ensure adequate compensation for their services

Add a comment

Related presentations

Related pages

InPlay from - Yahoo Finance

... InPlay from ... 3:17 pm Nasdaq Comp -10 did not confirm new low during the ... 08 am Wins Finance enters into a sale ...
Read more

Facebook - Log In or Sign Up

Create an account or log into Facebook. Connect with friends, family and other people you know. Share photos and videos, send messages and get updates.
Read more

Schedule of Events - National Defense Industrial ...

Schedule of Events: ... & Advanced Planning Briefings for Industry (APBI) ... 11/08/2016 — 11/10/2016 7940 - Aircraft ...
Read more

Program for Driving Technology 2016 | IDA Universe

Log ind. Log ind. Har du allerede et ... 08.30-09.00 Check in, ... 09.00-09.10 Good morning: Briefing and welcome. Technology, organizations and ...
Read more

Philadelphia Authority for Ind. Dev., PA Credit Rating ...

... briefings, and teleconferences. ... Philadelphia Authority for Ind. Dev ... Moody's assigns MIG 1 rating to City of Philadelphia's $127M TRANs and A2 ...
Read more

Briefing: Ugen i mediebranchen -

Log ind. Forside; Meninger; Navne; Statistik; ... Briefing: Ugen i ... Jan Birkemose. Analysen er først bragt på
Read more

Briefing: Ugen i mediebranchen -

Log ind. Forside; Meninger; Navne; Statistik; MediaWorld; MedieJob; ANNONCE. Del på: Tekst: Briefing: ... Jan Birkemose.
Read more

TransAsia Airways Flight 222 - Wikipedia, the free ...

... only 10 survived. ... (08:00 UTC), but it was delayed ... one of them was a steep trans cockpit authority gradient.
Read more

Pilot und Flugzeug Artikel - Aktuelles

... 10 Uhr, Jan Brill. Luftrecht: ... Mit dem NPA 2015-08 legte die EASA einen Gesetzesentwurf für weitere Vereinfachungen vor, ... Captain's Log on www ...
Read more

The Indiana Law Blog

Posted in The Indiana Law Blog on May 27, ... (Ind. Ct. App. 2016), trans. pending. ... June 10, 2016 Ind. Courts ...
Read more