Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


How To Collect Your Share of My Million Dollar Giveaway

How To Collect Your Share of My Million Dollar GiveawayWe recently kicked off the most outrageous initiative in the history of investment research. It’s called the Income Millionaire Project. And the goal is simple: create 1,000 income millionaires. That’s a $1 billion goal! No one has ever tried it before, but that doesn’t bother me. I’m so sure you can use this program to make a million bucks… I’ll pay you $1,000 to start your journey. Go here for details.


Who Benefits From the Package Traffic Jam?

By Linda McDonough on February 28, 2018

Are you wondering where that package is that you ordered last week? In a world where most consumers are accustomed to 2-day shipping, waiting a week for a package can feel like an eternity.

I had this exasperation today. I ordered a needed kitchen gadget from a well-known home goods retailer and eagerly awaited its arrival. Two, three, four, even five days passed without a brown box on my doorstep.

I was certain there was some problem. An unpredicted snowstorm garbling midwest air travel perhaps? A sold-out item maybe?

Alas, when I tracked the package online, all was going according to plan. The retailer expected a 7-10 day delivery window. This used to be the norm for shipping times. But the popularity of Amazon Prime, which promises 2-day delivery, has shrunk the acceptable waiting times to a very tiny window.

This is changing.

You may not have heard about it on the evening news but you’re likely to start noticing it in your everyday life. There is a major shipping crunch happening in the U.S. and your packages will take longer to arrive.

A concurrence of events is causing this squeeze. The demand side of the equation is rising due to the continued secular growth of e-commerce and the cyclical growth of the economy.

The supply side is being hit due to a shortage of drivers and available space on trucks.

Any economist can tell you, rising demand coincident with declining supply can only mean one thing- higher prices.

Rigorous New Driver Regulations:

One month ago the ELD or the electronic logging device regulation took effect. This mandate requires truck drivers to electronically log the number of hours they have driven. This government rule has a number of restrictions.

It limits the number of consecutive hours a truck driver can drive, the cumulative number of hours allowed driven over a longer time period and the amount of time required for breaks between drives.

There have always been rules limiting long driver hours. However, they were tracked via a manual logbook. Manually entering starting and stopping times allowed for some wiggle room when making trips.

But the arrival of GPS put the kibosh on any fuzzy numbers. Start and stop times are specific and fines for breaking drive limits are onerous.

While proponents of the rule argued the rule would remove the hassle of manual logs, the lost driving time is wreaking havoc on trucker productivity.

Demand – up, up, up

The Cass Freight Index, which measures the monthly volume of freight and the money spent to ship it in the U.S. is flying high.

The January numbers, just released this week, are skyrocketing. Shipments are up 12.5% and dollars spent up 14%. These are some of the biggest year-over-year increases recorded since the index began in 1999.

The combination of higher prices and higher volumes is good news for shippers. Many consumer products companies are complaining that their earnings were clipped due to higher freight charges. And most warned investors that higher freight expenses will continue for the rest of the year, at least.

What is one company’s problem is another’s opportunity. Higher expenses for manufacturers equals higher revenue for the truckers.

Trucking companies reported stellar revenue trends for the fourth quarter. Revenue rose in the high double-digits for most. The higher wages necessary to increase the number of drivers to compensate for hourly driving restrictions ate up some of those increases but not all.

In a surprising case of “sell on the news” many trucking stocks fell despite strong earnings. Since then they’ve been getting up to speed.  I have several stocks that I’ve recommended for my Profit Catalyst Alert portfolio that should benefit from these trends. I expect investors will become more bullish on this group as they recognize that the trends supporting higher rates aren’t disappearing with the next cycle.

You might also enjoy…


R.I.P Bull Market—Here’s How To Protect Your Wealth

I hope you’ve enjoyed the phenomenal bull market of the past eight years…

Because it’s about to come to a screeching halt.

The Federal Reserve’s nearly decade-long spending spree has finally come to an end.

With no other options left at their disposal, the Fed has no other choice than to raise interest rates to keep inflation in check.

And that leaves you with two options…

Do nothing and suffer the agony of watching the profits you’ve accumulated over the years evaporate right before your eyes…

Or reposition your portfolio and invest in companies which prosper as inflation rises and interest rates soar.

I think the choice is clear. And I’ll show you the best new positions you can take if you click here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.