Mediterranean Shipping 11 Vessel Order

Mediterranean Shipping Company placed an order for 11 ships of 22,000 TEU, less than a week after CMA CGM confirmed its own order for nine of the giant vessels.

CMA CGM said its order for nine ships of 22,000 TEU was based on reducing unit costs, while MSC said the mega-ships would be deployed to replace vessels going off-hire in its chartered fleet.

MSC

ATA Truck Tonnage 7.1% August Gain

American Trucking Association’s seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 7.1% in August, following a 0.5% gain during July. In August, the index equaled 149 (2000=100), up from 139.1 in July.

“Tonnage was stronger than most other economic indicators in August and more than I would have expected,” Bob Costello, the ATA chief economist, said. “However, prep work for the hurricanes and better port volumes likely gave tonnage an added boost during the month.

FedEx Cyber $ Loss 40x More than Harvey

FedEx said on Tuesday a June cyber attack on its Dutch unit slashed $300 million from its Q1 2018 profit and the company lowered its full-year earnings forecast.

FedEx reported the negative impact of the June 27 cyber attack was $0.79 per diluted share while the negative impact of Hurricane Harvey was $0.02 per diluted share.

FedEx joins a number of companies reporting big earnings drops due to the NotPetya virus in June, crippling Ukraine businesses before spreading worldwide to shut down shipping ports, factories and corporate offices.

KCS, Laredo and Hurricane Harvey

Kansas City Southern (KCS) does not believe its property and business income losses from Hurricane Harvey will exceed KSC’s $10 million self-insured retention.

Extraordinary number because almost 60% of US surface trade with Mexico passes thru areas directly and indirectly affected by Hurricane Harvey.

KCS

Kirby Closes on Stewart & Stevenson

Kirby’s $756.5 million acquisition of Stewart & Stevenson closed on September 13, 2017.

Kirby operates the largest inland and offshore tank barge fleets in the United States.  The fleet includes almost 900 inland tank barges, 230 inland towboats, 70 coastal tank barges and 75 coastal towboats.

Stewart & Stevenson enables Kirby to broaden and deepen the offerings of Kirby’s diesel engine services unit for the oil and gas, marine, construction, power generation, mining, transportation and agricultural industries.  FY16 revenues for the diesel engine services unit were $299 million or 17% of operating revenues.

CSXT Coal Illinois Basin and Appalachia

The Surface Transportation Board (STB) held is Public Listening Session regarding CSXT on September 12, 2017.  The docket included the Joint Petition of Foresight Coal, Sugar Camp Energy, Williamson Energy and Consolidation Coal to address the adequacy of CSXT’s coal transportation service for the Illinois Basin and Northern Appalachia.  Details available shortly from the STP.

CSXT Service STB Public Session

The Surface Transportation Board (STB) is holding a public listening session at its DC offices on September 12, 2017 at 9:30 a.m.

The session is one of the many actions the the Board continues to take to monitor CSXT’s performance following major service failures related to the 2017 operating plan Hunter Harrison implemented shortly after joining CSX earlier this year.

Harrison has proven successful at reinvigorating operations and driving profit at Illinois Central, Canadian National (CN) and Canadian Pacific (CP) railroads.