Saturday, January 28, 2023
FreightWaves Passport
  • Home
  • Research
    • 3PLs
    • Carrier Outlook
    • Featured
    • Financials
    • Freight Market Outlook
    • Global Trade
    • Intermodal
    • Most Popular
    • News
    • Special Topic
    • Trucking
  • Education
  • Community
  • Events
  • Resources
    • Webinars
    • Meet the Team
    • Contact Us
  • Sign Up
  • Account
  • Log In
No Result
View All Result
FreightWaves Passport
  • Home
  • Research
    • 3PLs
    • Carrier Outlook
    • Featured
    • Financials
    • Freight Market Outlook
    • Global Trade
    • Intermodal
    • Most Popular
    • News
    • Special Topic
    • Trucking
  • Education
  • Community
  • Events
  • Resources
    • Webinars
    • Meet the Team
    • Contact Us
  • Sign Up
  • Account
  • Log In
No Result
View All Result
FreightWaves Passport
No Result
View All Result
Home 3PLs

Transportation Liquidity and Credit Analysis in a COVID19 Driven Recession

by Andrew Cox
Tuesday, June 16, 2020
in 3PLs, Financials, Intermodal, Rail, Special Topic, Trucking
Reading Time: 2min read
0
Transportation Liquidity and Credit Analysis in a COVID19 Driven Recession

When the financial markets come under stress and the U.S. enters a recession, credit
analysis always comes back to the forefront and is the most important consideration
of investors. This is where we find ourselves now in the aftermath of COVID-19
becoming a global pandemic that has effectively shut down much of the global
economy.

One scary fact is that prior to COVID-19 becoming a pandemic (as of the end of 2019),
the percentage of U.S. publicly traded companies that lost money in the prior 12
months was about 40%, as the era of ultra-low interest rates and universal access to
capital reigned. According to 13D research in its recent report A corporate debt
reckoning is coming, “one in six U.S. companies is now a zombie, meaning their
interest expenses exceed their earnings before interest and taxes.” This figure is sure
to grow as GDP falls as much as 40% in the second quarter. In addition, more than
50% of all outstanding corporate debt is rated BBB, just one notch above junk, with
the vast majority of that figure due for a significant downgrade.

For the transportation markets, and particularly the trucking industry, credit issues
do not yet appear to be manifesting themselves because of the initial boost to load
volumes from panic buying and stocking up at the grocery store through March.

For transportation companies, the next two quarters should be characterized by
rising bad debts, defaults, increasingly drawn down revolvers and withdrawn
guidance from public companies due to a lack of visibility (and horrible operating
metrics that many management teams would rather not divulge).

Members Only

You have selected content that's only available to members of FreightWaves Passport. As a member, you gain immediate access to the most in-depth and informative freight research available. It's your gateway to continuing education.

Members also get:

  • Access to exclusive community dedicated to discussing the most important challenges facing freight.
  • Monthly and Quarterly Freight Market reports keeping you informed of industry trends.
  • Much, much more!

Click below to learn more and sign up today!

Subscribe
Existing Passport subscribers may log in using the form below.

 
 
Forgot Password
Tags: brokerscarrierscredit riskLiquidity
ShareShareTweetSend

Andrew Cox

Andrew is research analyst on the Freight Intel Group and a recent graduate of the University of Tennessee at Chattanooga, where he graduated magna cum laude. Andrew started as an intern with FreightWaves in October 2018 and joined full-time upon graduation. He co-hosts the freight finance podcast "Great Quarter, Guys" on Tuesdays at 2 p.m. EST.

Related Posts

3PLs

Rocky road on the way in 2023?

Monday, December 12, 2022
Department stores find leading economic indicators in freight market data
3PLs

Department stores find leading economic indicators in freight market data

Thursday, November 17, 2022
Lumber companies face complex freight decisions
3PLs

Lumber companies face complex freight decisions

Wednesday, October 26, 2022
Next Post

Intermodal markets: Competition holding pricing down

Popular Research

  • Falling freight demand shapes 2022 outlook

    0 shares
    Share 0 Tweet 0
  • Lumber companies face complex freight decisions

    0 shares
    Share 0 Tweet 0
  • Rocky road on the way in 2023?

    0 shares
    Share 0 Tweet 0

By Categories

  • 3PLs (119)
  • Carrier Outlook (6)
  • Featured (71)
  • Financials (22)
  • Freight Market Outlook (1)
  • Global Trade (6)
  • Intermodal (109)
  • Most Popular (27)
  • News (81)
  • Passport Research (35)
  • Rail (98)
  • Shippers (33)
  • Special Topic (99)
  • Technology (19)
  • Trucking (160)

FreightWaves Passport




Research built for present and future c-suite executives.





Benefits

  • Research
  • Education
  • Community
  • Events

Research by Topic

  • 3PLs
  • Carrier Outlook
  • Featured
  • Financials
  • Freight Market Outlook
  • Global Trade
  • Intermodal
  • Most Popular
  • Special Topic
  • Trucking

Resources

  • Webinars
  • Meet the Team
  • Contact Us

© Copyright 2021 | FreightWaves, Inc. | All Rights Reserved

No Result
View All Result
  • Home
  • Research
    • 3PLs
    • Carrier Outlook
    • Featured
    • Financials
    • Freight Market Outlook
    • Global Trade
    • Intermodal
    • Most Popular
    • News
    • Special Topic
    • Trucking
  • Education
  • Community
  • Events
  • Resources
    • Webinars
    • Meet the Team
    • Contact Us
  • Sign Up
  • Account
  • Log In

© Copyright 2020 | FreightWaves, Inc. | All Rights Reserved