Freight Sector Looks Healthy (DB, KNX, WERN, JBHT, LSTR)

According to a Freight Tracker report released by Deutsche Bank DB, the TL market is showing strength. Spot TL pricing increased by 40-50% from January-February levels due to stronger demand and capacity reductions. Deutsche Bank (DB) also expects contractual pricing to follow the TL lead. The Ceridian-UCLA Pulse of Commerce Index (PCI) has reported a 6.5% y/y increase in April for over the road diesel fuel consumption. Deutsche Bank has maintained a “Buy” rating on Knight Transportation KNX, Werner Enterprises WERN and J.B. Hunt Transport Services JBHT. The bank has given a “Hold” rating to Landstar System LSTR. The company is expected to maintain strong demand in coming months. Landstar System (LSTR) had a positive y/y pricing comp in March.