Things Must Be Picking Up?
#31
Gets Weekends Off
Joined APC: Mar 2006
Posts: 3,333
UPDATE 1-Credit Suisse upgrades United Parcel Service
Mon Sep 14, 2009 12:05pm EDT
Sept 14 (Reuters) - Credit Suisse upgraded United Parcel Service Inc (UPS.N), the world's largest package delivery company, to "neutral" from "underperform," saying the domestic and international freight environment is improving.
"Valuation now appears much more reasonable," said analyst C. Ceraso, who raised his price target on the stock to $61 from $48.
"Last April the expensive valuation appeared out of whack relative to the rest of the transport group," he said.
Since then, UPS shares were up only 10 percent, compared to FedEx's (FDX.N) 40 percent appreciation, while trucks and rails were up 20 percent and 30 percent, respectively, Ceraso said.
"Our valuation is based on the assumption that UPS can generate about $5.2 billion in EBIT in FY11, and that the company can grow operating profit 10 percent annually on a three to five-year view," said the analyst.
Shares of the Atlanta-based company were down 19 cents at $58.61 Monday on the New York Stock Exchange.
Mon Sep 14, 2009 12:05pm EDT
Sept 14 (Reuters) - Credit Suisse upgraded United Parcel Service Inc (UPS.N), the world's largest package delivery company, to "neutral" from "underperform," saying the domestic and international freight environment is improving.
"Valuation now appears much more reasonable," said analyst C. Ceraso, who raised his price target on the stock to $61 from $48.
"Last April the expensive valuation appeared out of whack relative to the rest of the transport group," he said.
Since then, UPS shares were up only 10 percent, compared to FedEx's (FDX.N) 40 percent appreciation, while trucks and rails were up 20 percent and 30 percent, respectively, Ceraso said.
"Our valuation is based on the assumption that UPS can generate about $5.2 billion in EBIT in FY11, and that the company can grow operating profit 10 percent annually on a three to five-year view," said the analyst.
Shares of the Atlanta-based company were down 19 cents at $58.61 Monday on the New York Stock Exchange.
#32
FedEx stock is $78.88 right now. Still far below what I paid ($115, silly me), but a lot better than a few months ago when it was something like $35 a share. Boeing shares are down, but Microsoft is up.
Today, I found out I need a new roof for my coffee shop. Also a new electrical panel since the one I have is completely maxed out. All this should cost me another $20,000 or so. Trying very hard to stimulate the economy in my own little way!! What are YOU doing?
Today, I found out I need a new roof for my coffee shop. Also a new electrical panel since the one I have is completely maxed out. All this should cost me another $20,000 or so. Trying very hard to stimulate the economy in my own little way!! What are YOU doing?
#35
Here is the Seattle Times' take on the Cargo Facts Symposium which ended today at the Sheraton Hotel with the Gala held at the Museum of Flight. Must be late, but I read this to mean that my thread premise is wrong and that things are not picking up after all. At least not for another 3 to 5 years.
The air-cargo business has suffered a "lost decade" as demand this year dropped to levels last seen in 2000 — and recovery is expected to be slow, experts said at an aviation conference in Seattle Wednesday.
That doesn't bode well for the broader economy, since air cargo is typically an indicator of how other sectors will fare, they said.
Government requirements that kick in next year for security screening of air cargo will deepen the industry's challenges, increasing costs for U.S. air shippers and likely forcing some cargo to move on trucks instead.
Air-cargo traffic is down 20 percent so far this year compared to 2008, according to Seattle-based Air Cargo Management Group, host of the annual Cargo Facts symposium, which drew about 375 executives and managers from air-freight carriers, passenger airlines and aircraft-leasing companies.
That decline is a shock for a business that for decades saw steady growth averaging 6 percent per year, tracking the growth of global economic activity. Air Cargo's managing director Bob Dahl said the past few months have seen some improvement to the dismal picture of early 2009, offering some hope that the business has hit the bottom.
Still, speakers didn't foresee a quick rebound.
"It could take three to five years to get back to 2007 levels" of air-cargo traffic, said David Sutton, FedEx's managing director of aircraft acquisition and sales. "We see a very slow recovery."
The price of fuel is the No. 1 concern for all-cargo airlines.
But Neel Shah, vice president of Delta's cargo business, said his primary worry is the August 2010 deadline by which all cargo carried in the belly of passenger jets must be prescreened for security threats.
Air freight typically arrives for loading into an airplane on pre-packed pallets, which are often shrink-wrapped at the shippers. But a 2007 federal law requires that starting next year, each piece must be separately screened.
To avoid breaking up those pre-packed pallets at airports, shippers will have to do the screening before they are packed and then secure the integrity of the supply line to the airport.
To comply with the law, shippers and airlines will have to set up secure facilities with trained and vetted staff.
Doug Brittin, manager of air-cargo programs for the Transportation Security Administration (TSA), said that machines capable of inspecting large loads are simply not available.
Based on 2007 air-cargo traffic figures, Britten said the law will require screening of about 1 million boxes daily.
He conceded that the law is an "unfunded mandate," meaning that the costs must be borne by the shippers and the airlines. He said the requirement will inevitably increase costs for the industry and divert some cargo to other modes of transport, such as trucks.
Although the purpose of the law is to stop potential terrorist threats, an unintended consequence will be to impose a burden on U.S. business greater than that on foreign competitors. The law applies only to air freight originating in the U.S. and not to cargo inbound to the U.S. from overseas.
Britten said the U.S. government cannot impose its regulations on foreign carriers and airports, so it is instead working with the International Civil Aviation Organization (ICAO) to implement common security standards.
"We don't expect the industry can get 100 percent screening [of international inbound cargo] by August next year," Brittin said. "We're working with ICAO. It's a much longer process."
That doesn't bode well for the broader economy, since air cargo is typically an indicator of how other sectors will fare, they said.
Government requirements that kick in next year for security screening of air cargo will deepen the industry's challenges, increasing costs for U.S. air shippers and likely forcing some cargo to move on trucks instead.
Air-cargo traffic is down 20 percent so far this year compared to 2008, according to Seattle-based Air Cargo Management Group, host of the annual Cargo Facts symposium, which drew about 375 executives and managers from air-freight carriers, passenger airlines and aircraft-leasing companies.
That decline is a shock for a business that for decades saw steady growth averaging 6 percent per year, tracking the growth of global economic activity. Air Cargo's managing director Bob Dahl said the past few months have seen some improvement to the dismal picture of early 2009, offering some hope that the business has hit the bottom.
Still, speakers didn't foresee a quick rebound.
"It could take three to five years to get back to 2007 levels" of air-cargo traffic, said David Sutton, FedEx's managing director of aircraft acquisition and sales. "We see a very slow recovery."
The price of fuel is the No. 1 concern for all-cargo airlines.
But Neel Shah, vice president of Delta's cargo business, said his primary worry is the August 2010 deadline by which all cargo carried in the belly of passenger jets must be prescreened for security threats.
Air freight typically arrives for loading into an airplane on pre-packed pallets, which are often shrink-wrapped at the shippers. But a 2007 federal law requires that starting next year, each piece must be separately screened.
To avoid breaking up those pre-packed pallets at airports, shippers will have to do the screening before they are packed and then secure the integrity of the supply line to the airport.
To comply with the law, shippers and airlines will have to set up secure facilities with trained and vetted staff.
Doug Brittin, manager of air-cargo programs for the Transportation Security Administration (TSA), said that machines capable of inspecting large loads are simply not available.
Based on 2007 air-cargo traffic figures, Britten said the law will require screening of about 1 million boxes daily.
He conceded that the law is an "unfunded mandate," meaning that the costs must be borne by the shippers and the airlines. He said the requirement will inevitably increase costs for the industry and divert some cargo to other modes of transport, such as trucks.
Although the purpose of the law is to stop potential terrorist threats, an unintended consequence will be to impose a burden on U.S. business greater than that on foreign competitors. The law applies only to air freight originating in the U.S. and not to cargo inbound to the U.S. from overseas.
Britten said the U.S. government cannot impose its regulations on foreign carriers and airports, so it is instead working with the International Civil Aviation Organization (ICAO) to implement common security standards.
"We don't expect the industry can get 100 percent screening [of international inbound cargo] by August next year," Brittin said. "We're working with ICAO. It's a much longer process."
#36
Next stop is for a router to get my free WiFi going. So what if someone will use it to spam or surf porn? I'll just join them, I guess! And SabreDriver - will you walk to my shop from SEA? If you do, I promise you 5 free lattes! You are Da Man.
Things are picking up. Perhaps not in the passenger side, but certainly businesses are doing something positive. I also remain hopeful in the American consumer's capacity to bring us out of this slump.
Things are picking up. Perhaps not in the passenger side, but certainly businesses are doing something positive. I also remain hopeful in the American consumer's capacity to bring us out of this slump.
Vagabond, let me get this straight. First, you say you are gonna join in on some local porn surfing there in Washington, and in almost the same breath, you invite me over for Latte. Thanks, I think...
Also, what you are saying is, I have to walk from SEA to B-ham for the free lattes? I better pack a lunch, it's only 101 miles. Maybe I can jumpseat on one of those FedEx trucks? This latte thing better be good!
Good luck with the shop, glad to hear that I am not the only one who isn't participating in this recession thingy.
#39
TSA Presses Shippers On Screening / August '09 Americas / World News / Magazine / Home - Air Cargo World
TSA Presses Shippers On Screening
The Transportation Security Administration (TSA) has voiced concern about footdragging and shippers’ lack of awareness on issues tied to
the stricter cargo screening levels set to begin in August 2010.
TSA is worried shippers may wait “until it is too late” to “surmount the challenges” of August 2010, when 100 percent of all cargo transported on passenger aircraft must be screened at the piece level, according to a July 20 TSA notice posted by OAG Inforwarding.
While it may appear that the 50 percent cargo screening level mandated by Congress that began in February was “met without significant challenges,” TSA said, shippers should consider the following issues:
■ The economic downturn caused a 35 percent drop in the movement of cargo compared with 2007.
■ Airlines still lack the space and facilities to “de-palletize,” screen, and reconfigure large shipments.
■ Some commodities were excluded for a limited time frame (until August 31st, 2009).
Eight-five percent of current screening entities (airlines and CCSF freight forwarders) utilize ETD (explosives trace detection) screening. Alarm resolution for ETD other than physical search is challenging. “There is a high risk of a physical inspection (opening boxes and removing content) resolution as a result of “contamination” while shipments are in forwarder or airline vehicles/docks.”
Overall, airlines would not have attained the required percentage without the screening percentages contributed by Certified Cargo Screening Program (CCSP) freight forwarders, who also use ETD as primary method of screening.
Citing a “decline in applications” for the Certified Cargo Screening Program, TSA said in its notice that it will provide incentives for shippers to join the program as well as additional benefits to those who apply and commit before September.
Other issues shippers should keep in mind are that screening the “difficult, complex, skidded cargo” still lies ahead, TSA said. Most shipments screened today “are not skidded/move on narrow body aircraft.”
Also, an economic rebound will lead to increased cargo volume. “Screening 100 percent of 15 million pounds per day in 2010 vs. screening 50 percent of nine million pounds per day now represents a 300 percent increase in cargo screening (a return to 2007 levels),” the agency said.
If too many shippers wait until the “last minute” to apply for CCSP, TSA would not have resources to certify them in time for August 2010 mandate, the agency said. Facilities that volunteer to participate in the CCSP program “will be able to tender cargo directly to a passenger air carrier or freight forwarder. This includes: Manufacturers, Warehouses, Distribution Centers, Third Party Logistics Providers, and other similar facilities,” TSA said.
#40
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Vagabond, how do you do it? You start a a thread about cargo volumes, and it drifts into coffee and then to porn.... and at the bottom of this page there was this Ad link
Opening a Coffee Shop
How does a coffee shop work The steps for opening a coffee shop
Learn How To Start A Coffee Shop
What's next, porn ads on APC? Or maybe roofing services.
Now back to your regular thread...
Opening a Coffee Shop
How does a coffee shop work The steps for opening a coffee shop
Learn How To Start A Coffee Shop
What's next, porn ads on APC? Or maybe roofing services.
Now back to your regular thread...
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