iShares Transportation Average

FedEx (FDX) incurred capital expenditure of $1.17 billion in the first quarter compared to $1.0 billion in the comparable period of fiscal 2018.

C.H. Robinson Worldwide’s (CHRW) NAST (North American Surface Transport) segment provides truckload, LTL (less-than-truckload), and intermodal freight transportation services across North America.

C.H. Robinson Worldwide (CHRW) went public in 1997. Soon after, the company went on an acquisition spree to further its business interests in new geographies.

As per the latest JOLTS report, total separations for December were 5.2 million, which is 3.6% of the total workforce.

As per the latest JOLTS report, about 3.2 million American workers quit their jobs voluntarily in November.

To demonstrate the power of efficient scale in creating economic moats, we highlight four companies: U.S.-based wide moats CSX Corporation and UPS, and international narrow moats Telefonica SA (Spain) and CapitaLand Commercial (Singapore).

Horizon Air pilots have ratified a change in their existing eight-year pilot contract that entitles both existing and new pilots to receive significant pay raises.

In 4Q16, regional carrier Spirit Airlines (SAVE) had a leverage ratio of 0.96x, JetBlue Airways (JBLU) had a leverage ratio of 0.83x, and Alaska Air Group (ALK) had a leverage ratio of 0.36x.

The load factor Airlines’ capacity utilization is measured using the passenger load factor, which is calculated by dividing traffic by capacity. Analyzing airlines’ load factors As discussed in the previous article, most airlines saw high capacity growth in January 2017. As a result, all airlines except JetBlue Airways witnessed a decline in their load factors. […]

In July 2013, the FMCSA of the US Department of Transportation extended safety regulations regarding truckload drivers’ hours of service.

For airlines such as American Airlines (AAL), we go a step further and use an EV+ Op. leases-to-EBITDAR ratio.

Some key strengths keep American Airlines ahead of its competitors. It’s the largest airline in fleet, capacity, and number of passengers. It also has a strong hold on key hubs.

3M company owes much of its innovative culture to William McKnight, who became the General Manager of the company in 1914.

After the merger, American Airlines became the world’s leading airline in terms of fleet size, network, and finances. American Airlines stock has risen more than 270% since 2011.

Soon after US Airways declared its intention to merge with American Airlines, AAL started working on its weak points and restructuring costs.

UPS’s US Domestic Package segment consists of the time-sensitive delivery of letters, documents, and packages across the US. As the jewel in the company’s crown, this segment’s share averaged 61.1% of the total revenues in the last six years.

Intermodal transportation involves the movement of freight in an intermodal container using multiple transportation modes such as rail, ship, and truck. It doesn’t involve the handling of freight when the modes are changed.

One of the largest road transport companies in North America, J.B. Hunt Transport (JBHT) has transportation arrangements with all major US Class I railroads. Its operating revenues grew from $2.2 billion in 2002 to $6.1 billion in 2015.

Spirit Airlines has historically followed a low-cost structure, and took numerous measures to keep its cost components the lowest in the industry.

Norfolk Southern Corporation operates ~20,000 route miles in 22 states and the District of Columbia. The company mainly transports coal and general merchandise.

The airline industry has contributed to the globalization of the world economy. It connects buyers and sellers. It also transports goods across nations. It breaks the barrier of distance and time. The industry’s future looks bright. Travel expenditure in the U.S. is expected to grow by 4.3% in 2014 and 5.1% in 2015.

Spirit (SAVE) ranks first in profitability among seven airlines in the United States. The main driver for this ranking comes from its exceptional ability to manage costs.

United Parcel Services (UPS) announced its agreement to acquire Coyote Logistics. It’s a Chicago-based logistics firm with contract carrier companies.

Southwest is known to be the pioneer of low cost travel in the industry. Its 42-year record of profitable operations is enough to prove the success of the company’s business model.

The US has witnessed the emergence of a number of regional carriers such as OnTrac and Eastern Connection, which are providing cheaper, faster delivery options.

The e-commerce industry is poised to grow rapidly in the future. With this growth will come the need for package delivery.

Standard courier services involve collecting the parcels, sorting the parcels, and transferring the parcels to the closest depot to the delivery location.

The US courier and parcel delivery services industry consists of about 7,500 companies both large and small, which have combined annual revenue of about $90 billion.

UPS has the highest sales among its peer group with $58.2 billion in sales in 2014. Rival FedEx wasn’t far behind with $47.45 billion in sales.

United Parcel Service is the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services. It forms the largest holding of 7.6% in IYT.

FedEx has been in the marketplace for over 40 years. It has established a huge network spread across more than 220 countries and territories worldwide.

FedEx’s (FDX) financial performance during the last few years has been extraordinary. It successfully bounced back from the recessionary downturn.

FedEx has assembled a portfolio of solutions, from express and freight forwarding to critical inventory logistics, that can solve any global commerce challenge.

Currently, FedEx is the global leader in the express delivery market. It offers delivery to and from individuals and businesses. It has various business units.

Capacity utilization has improved from the lows of ~57% in the 1970s to ~76% in 2014 and 81.88% in year-to-date 2015.

A strengthening dollar led to improved profitability for US airlines in 1Q15 while subduing profitability for non-US airlines. This further increased the industry’s performance gap across the globe.

Southwest Airlines posted excellent financial performance metrics in 1Q15, including ~6% growth in available seat miles.

The business cycle, which reflects fluctuations of activity in an economy, can be a critical determinant of equity sector performance over the intermediate term.

Wide-body aircraft fly transoceanic routes, can accommodate 200–500 passengers, and often transport commercial cargo across the globe.

When Boeing bought McDonnell Douglas in 1996, the acquisition helped Boeing overtake Lockheed Martin as the largest defense contractor.

The airline industry is widely impacted by regulations and restrictions related to international trade, tax policy, and competition. It’s also impacted by issues like war, terrorism, and the outbreak of diseases—such as Ebola. These issues are political. As a result, they require government intervention.

Old Dominion Freight Line (ODFL) has a strong pricing discipline and best-in-class service capabilities.

Landstar’s success lies in its ability to provide a complete logistics solution through various transportation modes and up-to-date technology.

Landstar and other 3PLs perform better during supply disruptions, when they can secure trucks among their large networks of small carriers.

Landstar invested $12 million in upgrading its IT and communications systems, making use of satellite technology and mobile equipment to track its fleet.

J.B. Hunt’s (JBHT) Intermodal segment is the leader in the industry. The segment has transportation service agreements with most North American rail carriers.