Freight for Thought: Knight-Swift Transportation appoints new CEO

The following insights are provided by Sunset’s Strategic Account Management team.

Trends and discussions range from seasonal manufacturing and agriculture trends that affect available capacity to general insight into outside factors affecting freight volumes.

Below is a summary of the February 2024 industry insights:


NEWSWORTHY UPDATES

  • Knight-Swift President and CEO, Dave Jackson, has stepped down for ‘the next generation’ to take over the company.  Adam Miller, the company’s previous CFO, will take the helm.
  • Knight-Swift is committed to growing their LTL sector in 2024 by adding terminals and property to bolster that growth. Already the largest US Truckload operator, the company has purchased 25 terminals  from the Yellow Liquidation at a total of $53.9M.
  • Global container capacity is scheduled to expand by 10% this year despite expectations that vessel recycling will hit record levels. Meanwhile, container volume growth will be just 3% to 4%, according to shipowner association BIMCO.  The Red Sea disruption has absorbed an estimated 6% to 7% of global capacity.
  • UPS has stated they are going to explore alternatives for Coyote Logistics and announced layoffs exceeding 12,000 workers. 
  • LTL rates are probable to rise 4.1% in 2024, after a mere 2.4% increase last year.  We don’t anticipate a change in the market until industrial production revives, expected to be late in 2024.
  • Lower US interest rates and improving market conditions may stoke the appetite for trucking acquisitions in the US and Canada this year. Much depends on when and how far the US Federal Reserve decides to lower interest rates and how quickly the weakened freight market improves.
  • The LMI report for January is optimistic, with all key market factors pointing to growth in the trucking industry for the first time in two years, and up 5 points from December.
  • Diesel prices have dropped to $4.058/gallon this week, decreasing $0.051 from the week prior and $0.236 from a year ago.

YELLOW LIQUIDATION SUMMARY

  • The liquidation of assets of bankrupt LTL Carrier, Yellow, has completed.  Coming out on top of the bidding process is XPO with 28 purchased terminals for $870M.  The full list of terminal sales is below.  Owned terminals were liquidated in Phase 1, leased terminals were liquidated in Phase 2.
  • Stage 3 of this sale is still ongoing and involves the locations which were tied up in the US Government payback. Knight-Swift has purchased 10 of these locations for $2.2M to date, in addition to their purchases in Stage 1 and 2. 


KEY LOGISTICS INDICATORS


EMERGENCY WEATHER ALERTS

Please expect delays in transit for shipments going through the affected areas listed below:

Industry data is pulled and summarized weekly from key proprietors and industry experts using multiple publications and sources. Sources include, but not limited to: FreightWaves, U.S. Energy Information Administration (EIA), DAT, Journal of Commerce (JOC), Reuters, PYMNTS, NRF, Bloomberg. The information is discussed with Sunset Directors and validated prior to publication of summary data in this posting.