Tag: Road Transport

Pallet networks – picking up from the parcels market

Posted by | Sep 1, 2006 | |

Whether you think of pallet deliveries as big parcels or small freight consignments, the networks are becoming stronger by the year, and are learning more than a few tricks from their parcels industry cousins. Marcia MacLeod reports.

When Palletline opened its doors as the first pallet network in 1992, the logistics industry looked on with interest. Here was a way to deliver less than full loads without having to drive the length of the country and without worrying about return loads. But, some asked, would it catch on? Any doubters must be eating their words, for today Palletline and nearly all of its competitors are enjoying double-digit growth in volumes handled.

Palletways claims a 12 per cent growth in the first quarter of 2006з, while United Pallet Network (UPN) has seen its business jump by an average 21 per cent month on month. Pall-Ex is recording annual growth of 24 per cent and The Pallet Network (TPN) says volumes are up a whopping 32.8 per cent over last year.

Even that is overshadowed by Pallet-Track, which claims its business has grown by an incredible 84 per cent. Only Palletline grew more slowly – 5 per cent over the past year, 10 per cent in the last six months – but this is probably because it transferred its dangerous goods business to Hazchem Network, of which it is part-owner.

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TNT considers selling off unit Freight Management

Posted by | Aug 1, 2006 | |

TNT, the Dutch post group, said yesterday it might sell its freight management activities, in addition to the contract logistics business that a private equity group is close to buying.

The future of the former Wilson business – a Nordic freight forwarding company bought for Euros 257m (Dollars 328m) two years ago – is dependent on synergies with TNT’s express division.

It has been run as partof TNT’s logistics arm, offering air and sea transport as part of supply chain management.

But the decision to sell logistics – where margins have failed to meet expectations – meant the global freight management unit needed to be combined with express activities, which operate on a regional basis.

Linking them and finding savings might therefore prove difficult, said Peter Bakker, TNT chief executive.

He said TNT would publish the result of analysis to determine the potential for synergies in the current quarter. “If that (process) is not successful, then other scenarios open up,” Mr Bakker said, adding that these included selling the business.

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YRC Pre-Reports Modestly Above Consensus

Posted by | Jul 20, 2006 | |

YRCW pre-reported to the upside. Yesterday morning, YRCW pre-reported 2Q EPS in the range of $1.49-$1.54, ahead of Consensus $1.46 and our $1.42 estimate. Excluding a $0.04 loss from reorganization costs and gains on property sales, the new guidance range is $1.53-$1.58, but given YRCW’s continued charges, we do not exclude these losses and we don’t believe consensus excluded them either.
Upside driven by strong industrial economy and regional pricing. The company indicated volume and costs are on plan and yields provided the outperformance, especially from regional operations. Still, the midpoint of the new guidance range is just 3.8% ahead of the current consensus.
Raising 2Q EPS estimate. We are raising our 2Q EPS estimate to $1.54, the high end of mgmt’s guidance including charges and gains on sales, from $1.42, bringing our full year 2006 estimate to $5.23 from $5.11.
The near term environment is positive for LTLs, but operating leverage could be negative if the economy slows. The LTL group is likely benefiting from strength in the industrial sector and high fuel prices. This is also likely to benefit the near term outlook for ABFS, CNW, and ODFL, but for investors concerned about a slowdown in 2007, we note the risk of operating leverage swinging the other direction. Still, we expect a stronger industrial economy than consumer going forward.
YRCW has been extremely inconsistent in achieving guidance. Mgmt has pre-reported 3 of the past 4 quarters, with the prior two to the downside. We expect this volatility to continue because we think the company will continue to struggle operationally, particularly in the regional LTL business. Given the near term economic strength and low end valuation, we expect YRCW to remain in a trading range around $40 near term, and our rating remains Peer Perform.

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Application of Road-User Charging to Trucking Operations in Europe: A Review of the Tolling Schemes and Assessment of their Possible Impact on Logistics Systems

Posted by | Jul 20, 2006 | |

Road-user charging schemes have been introduced in Switzerland, Austria and Germany. Britain is planning to launch its Lorry Road User Charging (LRUC) system in 2008. The various schemes differ in their objectives, coverage, technology, procedures and toll levels. This paper compares currently operating systems and that planned for the UK. It concludes that the British system will be the most complex and yet, unlike the others, result in a net loss of tax revenue. The paper also assesses the possible effects of lorry road-user charging on a range of logistical variables, including system design, freight modal choice, truck utilisation, vehicle routing and the scheduling of deliveries. It shows how its logistical effects will depend on the nature of the tolling scheme and level of charges.

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