IFCR. Carrier Performs Well Relative to Key Indicators
DANBURY, CT -- (Marketwired) -- 06/05/15 -- Integrated Freight Corporation (OTC PINK: IFCR), a niche motor freight carrier providing transportation and logistics services on key routes throughout the United States, discussed key market trends and Integrated's solid performance in relation to key data points provided by industry analyst.
According to the May 2015 Stifel Transportation & Logistics Research Group, the current weekly Market Demand Index (MDI) for 2015 is largely flat nationwide reflecting a general slowdown in the American economy. MDI data reflects generally better demand than 2013 but well below the sustained demand levels of 2014. Demand for the first half of 2015 has remained at or near its five year moving average but truckload pricing is still trending upward, although at a slower pace than in 2014.
The Journal of Commerce in April 2015 reported that freight demand in most sectors of the trucking industry remained solid. However, because of the shortage of qualified truck drivers in the United States, freight markets reflect substantial upward price pressure as motor carriers raise pay rates to attract and retain drivers.
Last month transportation magazine, Fleet Owner, reported new data from the American Trucking Association that project a current shortage of 35,000 to 40,000 truck drivers. According to the ATA, the industry will require 240,000 new drivers by 2023 to meet the expected market demand. Nationwide motor carriers are reporting high driver turnover rates and more idle trucks requiring drivers.
Following driver wages, the highest cost of operations for truckers is fuel. Again, according to recent reports from Stifel Transportation, overall demand for diesel and gasoline products continues to increase more slowly than production growth. As a result, there will be continued downward pressure on fuel prices in the foreseeable future. This trend includes highway diesel prices.
David N. Fuselier, CEO of Integrated Freight, stated, "This trend bodes well for IFCR and is quite positive: demand in all of our niche markets remains solid day in and day out. Our customers' demand is less reactive to market downturns than the general market -- we are well-positioned for growth as the economy improves. Unlike the broader market, presently all of our trucks are fully staffed with qualified drivers. Despite the less robust overall market demand, our subsidiaries continue to report shipment demand well in excess of our capacity resources and the general market. There is significant back pressure on our operations and, therefore, our working capital and equipment credit facilities."
"As a committed niche motor carrier, we take advantage of our shippers' traffic characteristics to improve our drivers' work life and, as a result, our overall recruiting and retention of qualified drivers," said Hank Hoffman, IFCR's president. "Our planned organic and acquisition growth reflects our commitment to understanding key market indicators as well as our niche customers' needs. That commitment will help us build long-term value at IFCR."
DANBURY, CT -- (Marketwired) -- 06/05/15 -- Integrated Freight Corporation (OTC PINK: IFCR), a niche motor freight carrier providing transportation and logistics services on key routes throughout the United States, discussed key market trends and Integrated's solid performance in relation to key data points provided by industry analyst.
According to the May 2015 Stifel Transportation & Logistics Research Group, the current weekly Market Demand Index (MDI) for 2015 is largely flat nationwide reflecting a general slowdown in the American economy. MDI data reflects generally better demand than 2013 but well below the sustained demand levels of 2014. Demand for the first half of 2015 has remained at or near its five year moving average but truckload pricing is still trending upward, although at a slower pace than in 2014.
The Journal of Commerce in April 2015 reported that freight demand in most sectors of the trucking industry remained solid. However, because of the shortage of qualified truck drivers in the United States, freight markets reflect substantial upward price pressure as motor carriers raise pay rates to attract and retain drivers.
Last month transportation magazine, Fleet Owner, reported new data from the American Trucking Association that project a current shortage of 35,000 to 40,000 truck drivers. According to the ATA, the industry will require 240,000 new drivers by 2023 to meet the expected market demand. Nationwide motor carriers are reporting high driver turnover rates and more idle trucks requiring drivers.
Following driver wages, the highest cost of operations for truckers is fuel. Again, according to recent reports from Stifel Transportation, overall demand for diesel and gasoline products continues to increase more slowly than production growth. As a result, there will be continued downward pressure on fuel prices in the foreseeable future. This trend includes highway diesel prices.
David N. Fuselier, CEO of Integrated Freight, stated, "This trend bodes well for IFCR and is quite positive: demand in all of our niche markets remains solid day in and day out. Our customers' demand is less reactive to market downturns than the general market -- we are well-positioned for growth as the economy improves. Unlike the broader market, presently all of our trucks are fully staffed with qualified drivers. Despite the less robust overall market demand, our subsidiaries continue to report shipment demand well in excess of our capacity resources and the general market. There is significant back pressure on our operations and, therefore, our working capital and equipment credit facilities."
"As a committed niche motor carrier, we take advantage of our shippers' traffic characteristics to improve our drivers' work life and, as a result, our overall recruiting and retention of qualified drivers," said Hank Hoffman, IFCR's president. "Our planned organic and acquisition growth reflects our commitment to understanding key market indicators as well as our niche customers' needs. That commitment will help us build long-term value at IFCR."
