Executives at freight haulers Con-way Inc. (CNW) and Old Dominion Freight Line Inc. (ODFL) said the U.S. rebound still appears to be gaining steam, despite uncertainty rocking the global economy. Volume "has been consistently strong and perhaps even increasingly strong," said Stephen Bruffett, Con-way's chief financial officer. He made the comments Tuesday during a panel discussion at a Wolfe Trahan & Co. transportation conference in New York.
Bruffett said Con-way's volume was up about 37% in April, compared to the year-ago period, after climbing about 35% in the first quarter. May volume will be up only about 30%, he said, but he chalked that up to deliberate efforts to improve pricing.
Con-way, a top less-than-truckload shipper, aggressively cut prices to gain market share last year as demand for freight transport dried up amid the economic downturn.
Less-than-truckload shippers consolidate loads from multiple customers onto single trucks.
Old Dominion Chief Executive David Congdon echoed Bruffett's comments regarding the U.S. freight environment, saying conditions perked up considerably in March and the trend has continued.
Old Dominion, a competing less-than-truckload shipper, followed a relatively conservative pricing strategy during the downturn, opting against pursuing market share at the expense of margins.
Congdon, who participated in the panel discussion with Bruffett, said Old Dominion's volume climbed about 11% in April and is on track for a similar increase in May, after finishing the first quarter up about 6%.
The U.S. economy "does feel better, like it's coming along," he said. "Are we in a sustained economic improvement right now? That's the big question."
Ryder System Inc. (R) CFO Robert Sanchez said his specialist leasing and logistics company also has seen signs of the recovery.
Speaking on the same panel, Sanchez said Ryder's lease miles picked up during the first quarter for the first time in more than a year. Ryder's rental business improved as well, he said, and used truck prices also have ticked higher.
Meanwhile, Con-way's Bruffett said Con-way turned a profit in April, and he said he expects the company to do so each month of the second quarter. For the first quarter, Con-way reported a loss of $4 million, or 8 cents a share, compared with a year-earlier loss of $154 million, or $3.35 a share.
