There are 3 really big news worthy events happening right now that show investment is being made into the transportation segment of the US Economy.
First – Warren Buffet, Probably the biggest investor in the country just bought a huge stake in Pilot Truck Stops. He already owns a railroad so I am pretty sure he is getting some signals that this industry is worth investing in. Either demand for services is going up or he thinks the price of oil is about to skyrocket. Either way rates will be going up because as of today there is still no other way to move products from point A to Point B without a big truck.
Second – US Xpress just signed a 200 million order for new trucks from Navistar. Fleets have been sitting on the sidelines but they are making a push now. One of the driving factors is the thinking that ELD‘s will push a lot of small trucking guys out and rates will go up. That is a whole other story about how the ATA is supporting big truck companies and is trying to over regulate the little companies.
Third – Tesla getting into the truck market with electric trucks. This guy is a genius and drilling tunnels from DC to NY for his hyperloop train idea. He see enough potential to invent an electric truck that is set to debut 11/16. (It does keep getting pushed back) But it is coming and it is going to change the way trucking is done. Self driving auto assist features and a crazy electric engine that is powered by batteries stored in the trailer. When the driver drops off he picks up a new charged up trailer for his next load.
There are some more for sure. Freight rates are sky high right now. We are facing a shortage of drivers. You name it. probably a good time to buy some transportation stocks or get on the road and start taking advantage of some of this 2.50 per mile freight that is getting easier to find.
Want to see real time freight rates! Visit the free load board with rates.