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Trucking Recession.

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Pospecteer

All-Conference
Dec 8, 2006
36,505
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I spent a day with the guy who started GE Capital Fleet (he sold it to them for a lot of money) and the piggyback concept of transportation. He proved to me that shipping was a leading indicator of an economic downturn. That being said, my wife works for a large Surity Bond company in the US. They sold 2x freight broker bonds last year as the year before. They are expecting a 20% increase this year. The market is solid, it is just convoluted with freight brokers, as a lot of people figured out it was an easy way to make money.
 
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Mntneer

Sophomore
Oct 7, 2001
10,192
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Pospecteer said:
I spent a day with the guy who started GE Capital Fleet (he sold it to them for a lot of money) and the piggyback concept of transportation. He proved to me that shipping was a leading indicator of an economic downturn. That being said, my wife works for a large Surity Bond company in the US. They sold 2x freight broker bonds last year as the year before. They are expecting a 20% increase this year. The market is solid, it is just convoluted with freight brokers, as a lot of people figured out it was an easy way to make money.
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Trucking has always been considered a leading indicator to an extent.
 
dave

dave

Senior
May 29, 2001
60,601
818
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Mntneer said:
Trucking has always been considered a leading indicator to an extent.
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I wonder how that will change moving forward since companies are using regional warehousing to minimize shipping?
 
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boomerwv

Freshman
Jan 16, 2008
9,988
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DvlDog4WVU said:
Better tell the trucking industry. Non-stop ads for employment opportunities on XM.
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https://www.stltoday.com/business/c...cle_35cd8a10-1a1d-5b68-b57b-98b925879c0f.html

"Donald Broughton, managing partner of Broughton Capital in Clayton, is a veteran transportation analyst and a believer in the freight sector’s predictive power.

“Trucking volume has done a magnificent job of predicting recessions,” he said. “It’s not anything other than real, tangible goods being moved.

“Right now that tangible goods flow, no matter how you slice and dice it, has gone from flashing yellow to flashing red,” Broughton added. “It’s predicting a recession.”"
 
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Spocker

Redshirt
Jan 26, 2004
3,496
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dave said:
I wonder how that will change moving forward since companies are using regional warehousing to minimize shipping?
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Exactly.....maybe they should do some current research and not rely on past indicators.....
 
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