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Thursday, April 15, 2010

What's going on in the Economy - Look at Areas of Transportation/Shipping Sector

One of these weeks, we'll update our "How's the Economy Doing" series, but for now, we'll try to share various data points or news items that tell the story. Some headlines from The Journal of Commerce yesterday (note: easy Y/Y comps helping):

Truckload Spot Prices Rocket in March
Truckload spot market freight volume reached pre-recession levels in March, climbing 259 percent from a year ago and 14 percent from March 2008, according to TransCore's North American Freight Index. The index broke 1,000 for the first time since June 2008.
Domestic Intermodal Primed for Growth
Domestic intermodal rail weathered the economic recession better than most transportation modes, and the industry appears now to be on the verge of experiencing unprecedented growth.
CSX Rates to Rise 4 to 5 Percent in 2010
CSX Transportation is sticking with its earlier guidance to see core pricing gains of 4 to 5 percent during 2010 although its first-quarter price gains were at the top of that range.
Frankfurt Cargo Soars to Record in March
Frankfurt airport handled more than 200,000 metric tons of freight in a month for the first time in March after traffic at Europe's biggest air cargo hub soared 37.4 per cent from a year ago.

More positive news for our container shipping companies Seaspan (SSW) and Global Ship Lease (GSL), as well as our aircraft leasing business, Babcock and Brown Air Limited (FLY), all of which we believe remain undervalued relative to reasonable fair values.

Happy investing,

Jeffrey Walkenhorst

Disclosure: long SSW, GSL, FLY.

© 2010 Jeffrey Walkenhorst
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