Hybrid Transit Systems INC

09/07/15

Customer / Industry

Customers / Industries

Private exporters reported to the USDA export sales of 125,000 tons of soybeans for delivery to unknown destinations during the 2015/2016 marketing year. The marketing year began Sept 1st when this was reported. Predictions include still a stronger demand from China for soybeans. With the hog industry booming, the soybeans will continue to be a huge hit for feed. Soybeans will be a focus of the feed commodity brokers. Ben and Jessica will need tune into the product types being shipped from the feed vendors.

The need for reefers in GA could strengthen. Trident Seafood opened a $40 million production plant and distribution center in Carrollton, GA. We will need to get an understanding of our reefer carrier base and hustle our customers for inbound freight accordingly.

Port Metro Vancouver (Canada) entered into an 8yr period of labor peace. Other than short-term shutdowns by container truckers, the port has moved a long way towards gaining the reputation of being a dependable, efficient port. We will see a switch in demand for trucks to run inbound to Vancouver?

End of Fiscal Year Focus – Several businesses end their fiscal year in September. CSRs will be talking to their contacts about this and how volumes will be effected.

Current RFPs and Awards

Ice River Springs backup award is released. A majority of the lanes are out of the SE. All OSRs have the spreadsheet for lane density development. New timeframe for first shipments through the TMS is now 9/8/15.

Panera Quarter 4 Work – Squeezed us hard on our rates. Could see a loss in volume for the 4th Quarter.

Local Market / Capacity

It’s a lot of the same for the next few weeks. It may sound repetitive, but there will still be good capacity in Eastern Iowa as local grain haulers are still looking for things to do; especially shorter haul (less than 200 miles). The latest rains (some places got in excess of 7 inches), will push the already later than normal harvest back a week or 10 days. DED will be stronger than the last few weeks with 20-23 trucks running. This will increase by a few in the next few weeks, and by the end of Sept should be 25+ every day. Outbound Iowa loads have been covering pretty consistently with 85-90 loads per week being covered. I think we could hit 100 outbound Iowa quite easily in the next month or two.

Capacity

Capacity

Demand for trucks is slightly rising, but still at a 3 year low. And not just for August, this is the lowest point in all of the last 3 years. This also means rates are still dropping as well.

This is a prime time to continue building relationships with carriers, and to build a bank of favors. When the market turns and there is a strong demand for trucks again, you will need to be able to pull favors from your “Favor Bank”.