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Federation Logistics Group optimistic on the 2025 cargo market


Chattanooga, a logistics group based in Tennessee, reported on total revenue in the fourth quarter of $ 277 million. (Photo: Jim Allen/Freightwaves)

Federation logistics group Officials have said they have predicted to improve market conditions throughout the cargo industry in the next few months.

“I think the environment is getting better. I think optimism is getting better,” said the President and CEO of logistics David R. Parker during a conference call to talk about earnings in the fourth quarter with analysts on Friday.

Chattanooga, an alliance based in Tennessee (Nasdaq: Cvlg) reported the results in the fourth quarter after the market closed on Thursday.

The company generated a total revenue of $ 277 million in the quarter, which is 1% compared to the year compared to the 20th quarter of 2023.

“This is the best I felt in two and a half years. Something happens on the market where we all waited a long time,” Parker said. “I really believe it is in March, that we will say that the burden is pretty good. And by June or July, sometime in mid -summer, we will say that there is a lot of cargo.”

Total cargo revenues increased by 5% compared to the year to $ 251 million during the fourth quarter, and truck operations increased by 3% compared to the year to $ 190 million.

Tractor cargo revenues per week increased by 2% compared to $ 5,444. Dedicated revenues of the logistics segment federally rose to $ 17% to $ 91.7 million.

Parker said Covenant Logistics has won several new bids for transportation in the last three weeks.

“We haven’t done it for two years on that kind of volume. I see a more specific burden to come to us. It tells me that if it happens in January, which, as we all know, January, February, the worst two months of the year, that it will Being better, Parker said. “I think the economy will be better off.”

Revenues from the accelerated truck segment of Covenant decreased by 6% compared to the year to $ 98.6 million, while the controlled freight segment recorded a $ 62.2 million revenue in the fourth quarter, which is a 5% reduction in the same time last year.

The warehouse segment during the quarter had a $ 24.3 million revenue, which is a reduction of 1% compared to one year.

The odds of Covenant’s logistics call for 2025 years to increase a rate of 2.5% to 55% of its business and provides for the growth of consolidated earnings in 2025.

“We expect the consolidated earnings to improve for 2025. Compared to 2024. Based on the following assumptions,” said Tripp Grant, CFO Covenant. “The basics of the general freight market have improved the level that now allows us to negotiate prices with a better position than the last two years. Assuming that the trend continues, we expect that we will achieve improved prices from year to year in accordance with a certain accelerated non -specialized dedicated and managed cargo contracts. The increase level is expected to be built throughout the year because contracts are renovated. “



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