|
Feb 18
|
|
$116.12
$116.12
+0.0%
|
LONG
|
Michelle McGinness
CEO of My Cargo 247
|
"The larger freight companies have traditional insurance that is great for contracts... a $200,000 loss for a large carrier might be a blip on their balance sheet but it can put out of business a small shipper." The surge in cargo theft creates a "survival of the fittest" environment. Small, underinsured carriers in the spot market face existential risk from a single theft event. This structural fragility favors large, capitalized logistics providers (UPS, FedEx, C.H. Robinson) who possess robust insurance programs and balance sheet depth. Shippers seeking reliability will likely consolidate volume toward these safer incumbents. LONG (Flight to Safety/Consolidation). A broad recession reducing overall freight volumes; "Strategic theft" (identity fraud) evolving to bypass even sophisticated carrier defenses. |
CNBC
How small businesses are insuring their cargo...
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|
Feb 17
|
|
$115.51
$116.12
+0.5%
|
N/A
|
Finnhub News
|
— |
Finnhub - UPS
UPS Calls for Dismissal of Teamsters Lawsuit ...
|
|
Feb 17
|
|
$115.51
$116.12
+0.5%
|
N/A
|
Finnhub News
|
— |
Finnhub - UPS
UPS’ 2026 closures will hit Atlanta, Dallas, ...
|
|
Feb 14
|
|
$117.60
$116.12
-1.3%
|
SHORT
|
Finnhub News
|
A lawsuit against UPS regarding driver choice and potential job cuts highlights significant operational challenges for the company. |
Finnhub - UPS
Teamsters Lawsuit Puts UPS Driver Choice Over...
|
|
Feb 13
|
|
$117.60
$116.12
-1.3%
|
N/A
|
Finnhub News
|
— |
Finnhub - UPS
Teamsters Seek Injunction to Block UPS Driver...
|
|
Feb 13
|
|
$117.60
$116.12
-1.3%
|
SHORT
|
Guy Johnson
Anchor, Bloomberg
|
A small AI company ("Algorithm Holdings") disrupted the sector, causing a "scare trade" where logistics stocks fell ~7%. The market is in a "manic" phase, pricing in the obsolescence of labor-intensive business models (logistics, trucking) due to AI efficiency. Investors are dumping "human-heavy" cost structures. SHORT / AVOID. Sentiment is currently "Category 5 paranoia" regarding AI displacement in logistics. The sell-off is an overreaction to a single news story (the "karaoke company" pivot), leading to a sharp mean reversion bounce. |
Bloomberg Markets
L'Oreal Falls, Kongsberg Sees Air Defense Sys...
|
|
Feb 13
|
|
$117.60
$116.12
-1.3%
|
SHORT
|
Mark Cranfield
Cross Asset Strategist, Bloomberg
|
"Gradually, we moved into a situation where anything with AI software seemed to be at risk... sticking to the AI hardware makers, the big guys like Taiwan Semiconductor, Samsung." Cranfield notes "Logistics" is the latest sector to sell off due to fears AI will "dismantle some of the workforce." The market is bifurcating the AI theme. It is no longer a rising tide lifting all boats. The trade is now a pair: Long the "Pick and Shovel" hardware providers (TSM, SAMSUNG, AMAT - the latter mentioned in headlines as surging) while Shorting the "Disrupted" sectors where AI replaces labor or reduces pricing power (Logistics like UPS/FDX and generic AI SOFTWARE). LONG Hardware / SHORT Disrupted Sectors (Logistics/Software). A broader tech selloff drags down hardware despite the structural demand; AI disruption fears in logistics prove overblown in the short term. |
Bloomberg Markets
AI Fear Drives Rout & Goldman Lawyer Quits Ov...
|
|
Feb 13
|
|
$117.60
$116.12
-1.3%
|
SHORT
|
Sheldon McLeod
Market Strategist
|
The "AI Scare Trade" has spread beyond tech into Logistics and Commercial Real Estate. The speaker notes that logistics firms rely on pricing inefficiencies and human error for margins. AI eliminates these inefficiencies. If logistics clients use AI to optimize truckloads and routes, they will no longer pay for the "inefficiencies" that previously padded the margins of logistics giants. Similarly, AI reduces the need for office labor, crushing demand for commercial space. SHORT. The market is repricing these sectors as "AI Losers" due to permanent deflationary pressure on their pricing power. The selloff may be an overreaction/panic selling before actual earnings erosion occurs. |
Bloomberg Markets
AI Angst Rocks Asia Markets | The Asia Trade ...
|
|
Feb 12
|
|
$116.45
$116.12
-0.3%
|
N/A
|
Finnhub News
|
— |
Finnhub - UPS
Should You Buy United Parcel Service After It...
|
|
Feb 12
|
|
$116.45
$116.12
-0.3%
|
N/A
|
Finnhub News
|
— |
Finnhub - UPS
What Does the Market Think About United Parce...
|
|
Feb 12
|
|
$116.45
$116.12
-0.3%
|
N/A
|
Finnhub News
|
— |
Finnhub - UPS
This Popular Sportswear Store Just Filed For ...
|
|
Feb 12
|
|
$116.45
$116.12
-0.3%
|
N/A
|
Finnhub News
|
— |
Finnhub - UPS
UPS Union Lawsuit And Temu Dispute Test Labor...
|
|
Feb 09
|
|
$116.30
$116.12
-0.2%
|
LONG
|
—
|
The reporter identifies UPS, FedEx, and C.H. Robinson as leaders in reverse logistics, alongside warehousing REITs Prologis and Terreno Realty, as the best way to play the surge in returns. Handling returns is more complex than standard shipping. Because it is a "specialized" service, logistics companies can charge a premium, resulting in better profit margins compared to commoditized delivery. Furthermore, the demand for this service is structural and growing due to "bracketing"—where shoppers intentionally buy more than they need (e.g., multiple sizes) with the intent to return, a habit deeply ingrained in Gen Z and Millennial consumers. Holiday returns are up 11% YoY. Returns generate significantly more revenue per unit ($30 cost to retailer vs. $12 for delivery). 50% of consumers now engage in bracketing. Retailers may tighten return policies to reduce costs, potentially lowering volume for logistics providers. |
CNBC
Holiday returns surge 11%: Reverse logistics ...
|