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Exclusive: Trucking CEOs expect higher prices, potential disruptions in second half of the year – TalkOfNews.com

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Trucking CEOs expect higher prices, potential disruptions in second half of the year

#Trucking #CEOs #expect #higher #prices #potential #disruptions #year

U.S. trucking CEOs expect to maintain pricing power even with volumes softening in the second half of 2022 as retailers, manufacturers and consumers adjust to disruptions from Covid lockdowns, the Russia-Ukraine war and inflation.

A recent survey of customers by SAIA, a trucker for Starbucks, Home Depot and Lowe’s, found the majority of companies are still working to figure out their next step and what the “new normal” is for their business, according to CEO Fritz Holzgrefe.

“They were talking a lot about continuing to rebuild inventory positions, straightening out their supply chains through the balance of the year, even into the first part of next year,” Holzgrefe told CNBC. “Maybe things have slowed a bit, but customers are still continuing to re-sort their supply chain position to more effectively to achieve their goals in their respective businesses.”

Trucks at the entrance to the Port of Oakland in Oakland, California, US, on Thursday, July 14, 2022. Truckers servicing some of the US’s busiest ports are staging protests as state-level labor rules that change their employment status begin to go into effect, creating another choke point in stressed US supply chains.

David Paul Morris | Bloomberg | Getty Images

The supply chain is improving and past the worst, according to Derek Leathers, CEO of Werner Enterprise, which moves freight for Walmart and Target. But, he warned, headwinds for truckers will keep rates well above prepandemic levels for the rest of 2022.

“You’ll see rates hold up for the remainder of the year. Our cost increases are real. Our customers understand that,” Leathers said. “We’re talking large scale successful winning brands like [Amazon and Walmart] and many others that know the reliance on their carrier is a competitive advantage. They want good quality transportation, on time, every time safely. To do that they work with large well capitalized carriers.” 

Trucking stocks have been some of the best performers in July, while the S&P 500 has gained more than 7% this month. SAIA and ArcBest are up over 20%, while Werner Enterprises, Knight Swift and JB Hunt have increased over 10%.

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Earlier this year there were concerns about a “freight recession” because of falling rates in the so-called spot market for trucking. According to the most recent data from Evercore ISI, those rates are down more than 11% year over year. The spot market provides on-demand freight transportation, and pricing varies based on supply and demand.

Spot trucking saw a boom at the height of the pandemic as companies adjusted to snarled supply chains and were willing to pay historic rates to transport goods during the e-commerce boom. However, the majority of trucking is still done through contracts with carriers and their customers like large retailers.

The leading companies in the three major segments of trucking make the majority of revenue from contracts — Knight Swift (full truckload), FedEx (less than truckload) and JB Hunt (container shipping) — have reported double-digit rate increases in their most recent earnings.

“We believe the contract rates will hold up. We believe contract rates are going to be at a place that is going to allow trucking companies to be remarkably profitable.” Deustche Bank transportation analyst Amit Mehrotra told CNBC.

He also expects demand to be slightly lower but stable for the rest of 2022. “I think the inventory issues that major retailers like Target are reporting is more of a reflection of changing buying patterns, rather than a significant withdrawal of consumer spending,” Mehrotra said.

The chief executive of one of the largest trucking brokerages in the United States is also watching consumer spending.

“Clearly the trucking market is different today than it was 12 months ago,” CH Robinson CEO Bob Biesterfield told CNBC’s “Squawk on the Street” on Tuesday.

He added that retail, housing and manufacturing are key drivers of trucking volumes. Manufacturing has held up the best of those three, he added. Retail saw volume increase in the first quarter and a decline in a second, Biesterfield said.

The outcome of the West Coast port labor negotiations is another big question mark for the trucking industry.

The contract between union workers and the ports that handle approximately 45% of U.S. imports expired July 1, but work has continued during ongoing negotiations. The two sides announced a tentative agreement on health-care benefits as they continue to work on a deal over compensation, automation and other points. There were stoppages, slowdowns or disruptions during the last three negotiations — in 2002, 2008 and 2014 — before a deal was reached, according to the U.S. Chamber of Commerce.

Holzgrefe, the SAIA CEO, said the threat of disruption is already leading to shifts in the supply chain.

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“What we’ve seen is our customers other ports or have redirected other parts of the country.” Holzgrefe said. “To the extent that the Port of L.A. becomes a problem again, we feel like we can adjust as our customers need to. It’ll just be more expensive to operate efficiently.”

“The L.A.-Long Beach negotiations could be a disruptive moment.” said Leathers, the Werner Enterprise CEO. “There is pent up demand in China that still has to move if they come out of Covid lockdown, and that could create some congestion and some disruption. There’s still a yet to be seen effect on the consumer with ongoing impact of inflation.”

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Exclusive: Rezonate raises $8.7M and launches its cloud identity protection platform out of stealth – TalkOfNews.com

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Rezonate raises $8.7M and launches its cloud identity protection platform out of stealth

#Rezonate #raises #87M #launches #cloud #identity #protection #platform #stealth

Rezonate, a Boston- and Tel Aviv-based startup that offers an agent-less cloud identity protection platform that aims to help DevOps teams minimize attackers’ opportunities to breach cloud identity and access, is coming out of stealth today and announcing an $8.7 million seed funding round, led by State of Mind Ventures and Flybridge, with participation from toDay Ventures, Merlin Ventures and a number of angel investors.

Founded in January 2022, Rezonate is part of a group of modern identity and access management (IAM) startups that aim to modernize the current state of affairs in this space, which is struggling to meet the demands of modern cloud infrastructure systems. This shift is creating new attack surfaces, especially as enterprises move to the cloud — and more dynamic infrastructure systems — at an ever-increasing rate. The number of security breaches stemming from issues with identity and access management is already on the rise. Indeed, Gartner expects that by 2023, “75% of security failures will result from inadequate management of identities, access, and privileges.”

Image Credits: Rezonate

Co-founder and CEO Roy Akerman was previously the head of the Israeli Cyberdefense Operations, while Rezonate co-founder and CTO Ori Amiga previously led R&D for this unit. Both received the Medal of Honor for their contributions to Israel’s National Security.

“The rapidly-changing cloudscape together with the proliferation of human and machine identities requires a different approach,” said Akerman. “Modern infrastructures require a precise and nimble way to outsmart attackers. One that prioritizes cloud identities and access at its core and is constantly adapting to current dynamics over yesterday’s snapshots and, for the first time, gives defenders and builders the means to act confidently.”

Image Credits: Rezonate

Rezonate promises to discover all of a company’s cloud and identity providers and the corresponding access privileges of its employees. The platform automatically detects security gaps and abnormal access attempts in real time. Rezonate promises that within minutes of deploying its solution, its platform can identify cloud identity and access risks and provide guidance for remediating them, or even automatically remove access and terminate sessions.

At the core of all of this is what Rezonate calls its ‘Identity Storyline,’ which aims to provide DevOps and security teams with a context-rich dashboard that helps them understand the security risk across a company’s cloud estate. With this, users get an easy-to-read dashboard that clearly lays out what kind of access every user has — and where there are potential issues.

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“The fact that in just ten months from our first line of code we already have active customers, solving key gaps daily, affirms the criticality of the cloud identity and access issue. In a cloud world where everything is changing all of the time, DevOps teams need a solution as dynamic and automated as the infrastructure they need to protect is,” said Amiga.

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Exclusive: Building a Prospecting Motion: How to Outreach Like a Pro – TalkOfNews.com

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Building a Prospecting Motion: How to Outreach Like a Pro

#Building #Prospecting #Motion #Outreach #Pro

The core responsibility of business development is to generate a pipeline of new business opportunities. For teams looking to close new customers, this work is indispensable.

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Exclusive: 5 things to know before the stock market opens Tuesday – TalkOfNews.com

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5 things to know before the stock market opens Tuesday

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A trader works on the floor of the New York Stock Exchange (NYSE), December 5, 2022.

Brendan McDermid | Reuters

Here are the most important news items that investors need to start their trading day:

1. Rough start

Stocks got off on the wrong foot this week with an ugly selloff Monday as investors weighed strong new economic data that stoked worries of sustained rate hikes from the Federal Reserve. The Dow dropped more than 480 points, while the S&P 500 declined 1.79% and the Nasdaq fell 1.93%. When it meets next week, the Fed’s policy-setting committee is expected to raise its benchmark rate by half a percentage point, which is less than the three-quarter-point hikes of the past few months but still sizable. Smith & Wesson and Stitch Fix earnings are set to hit after the bell Tuesday. Read live market updates here.

2. Salesforce slumps

Bret Taylor, co-chief executive officer of Salesforce.com Inc., right, and Marc Benioff, co-chief executive officer of Salesforce.com Inc., wear rabbit ears during a keynote at the 2022 Dreamforce conference in San Francisco, California, on Tuesday, Sept. 20, 2022.

Marlena Sloss | Bloomberg | Getty Images

3. Most Ford dealers sign up for EV plan

4. Biden touts Arizona chip investment

U.S. President Joe Biden speaks prior to signing railroad legislation into law, providing a resoluton to avert a nationwide rail shutdown, during a signing ceremony in the Roosevelt Room at the White House in Washington, U.S., December 2, 2022. 

Kevin Lamarque | Reuters

5. Russia ratchets up missile attacks

A building burns after shelling in Bakhmut, Donetsk region, on December 4, 2022, amid Russia’s invasion of Ukraine.

Yevhen Titov | Afp | Getty Images

And one more thing …

Actress Kirstie Alley

Noam Galai | Wireimage | Getty Images

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