The last few years have been challenging for the global shipping industry. The industry's downturn began following the financial crisis of 2009 and the subsequent global recession. The only exception, though, was the LNG tanker market, which benefited from growing LNG demand in Asia.
However, just as the wider shipping industry is seeing a recovery, the LNG tanker market has entered a downturn. Indeed, LNG charter rates have more than halved compared to last year. Despite this scenario, Teekay LNG Partners L.P. (NYSE: TGP ) is an attractive proposition as the partnership is largely protected from short-term volatility in LNG freight rates and is well positioned to capitalize on growth in the LNG market in the long term.
Short-term LNG freight rates down sharply
The global recession resulted in the shipping industry entering a prolonged downturn. Between 2007 and 2009, ship owners in the crude oil, oil products, and dry freight market ordered new vessels. However, just as the capacity increased, the global economy entered a recession. Not surprisingly, freight rates fell sharply.
Hot Life Sciences Stocks To Invest In Right Now: PostNL NV (PNL)
PostNL NV is a Netherlands-based Company active in delivery sector. The Company is engaged in the delivery of documents, small packages and standard parcels. The Company�� business is organized into three segments: Mail in the Netherlands, responsible for mail services in the Netherland, documents management, direct marketing and fulfillment services, and operating over 2,600 shop-in-shop post offices; Parcels, providing parcel services in the Netherlands and Belgium for both domestic and cross-border parcel distribution, and International, operating in the postal markets of the United Kingdom, Germany and Italy, and focusing on domestic addressed mail services. The Company also provides marketing and communication services, fulfillment solutions and e-commerce related solutions. Advisors' Opinion:- [By Inyoung Hwang]
PostNL (PNL) sank 11 percent to 2.48 euros, the biggest decline since Jan. 14. The Amsterdam-based company said sales in the second-quarter were 1.03 billion euros ($1.37 billion), falling short of the 1.04 billion euros predicted by analysts on average. PostNL forecast addressed mail volume in 2013 will drop as much as 11 percent, greater than its previous forecast of no more than 10 percent.
Top Freight Companies To Invest In 2014: Canadian National Railway Co (CNR.TO)
Canadian National Railway Company (CN), incorporated on August 24, 1995, is engaged in the rail and related transportation business. CN�� network of approximately 20,100 route miles spans Canada and mid-America, connecting three coasts: the Atlantic, the Pacific and the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama) and metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis and Jackson (Mississippi), with connections to all points in North America. CN�� network, and its co-production agreements, routing protocols, marketing alliances and interline agreements, provide CN customers access to all three North American Free Trade Agreement (NAFTA) nations. In March 2012, the Company acquired a locomotive program.
Petroleum and chemicals
The petroleum and chemicals commodity group consists of a range of commodities, including chemicals, sulfur, plastics, petroleum products and liquefied petroleum gas products. The Company�� petroleum and chemicals shipments originate in the Louisiana petrochemical corridor between New Orleans and Baton Rouge; in northern Alberta, and in eastern Canadian regional plants.
Metals and minerals
The metals and minerals commodity group consists primarily of non-ferrous base metals and ores, concentrates, iron ore, steel, construction materials, machinery and dimensional loads. The Company provides rail access to aluminum, mining, steel and iron ore producing regions.
Forest products
The forest products commodity group includes range of lumber, panels, paper, wood pulp and other fibers such as logs, recycled paper, wood chips, and wood pellets. The Company has rail access to the western and eastern Canadian fiber-producing regions. In United States, the Company is located to serve both the Midwest and southern United! States corridors with interline connections to other Class I railroads.
Coal
The coal commodity group consists of thermal grades of bituminous coal, metallurgical coal and petroleum coke. Canadian thermal and metallurgical coal is exported through terminals on the west coast of Canada to offshore markets. In United States, thermal coal is transported from mines served in southern Illinois, or from western United States mines through interchange with other railroads, to utilities in the Midwest and southeast United States, as well as offshore markets through terminals in the Gulf and the Port of Prince Rupert.
Grain and fertilizers
The grain and fertilizers commodity group depends primarily on crops grown and fertilizers processed in western Canada and the United States Midwest. The grain segment consists of three primary segments: food grains (mainly wheat, oats and malting barley), feed grains and feed grain products (including feed barley, feed wheat, peas, corn, ethanol and dried distillers grains), and oilseeds and oilseed nproducts (primarily canola seed, oil and meal, and soybeans).
Intermodal
The intermodal commodity group is consists of two segments: domestic and international. The domestic segment transports consumer products and manufactured goods, operating through both retail and wholesale channels, within domestic Canada, domestic United States., Mexico and transborder, while the international segment handles import and export container traffic, directly serving the ports of Vancouver, Prince Rupert, Montreal, Halifax and New Orleans.
Automotive
The automotive commodity group moves both finished vehicles and parts throughout North America, providing rail access to certain vehicle assembly plants in Canada, and Michigan and Mississippi in the United States. The Company also serves vehicle distribution facilities in Canada and the United States, as well as parts production facilities in Mi! chigan an! d Ontario. The Company serves shippers of import vehicles via the ports of Halifax and Vancouver, and through interchange with other railroads.
The Company competes with Canadian Pacific Railway Company.
Advisors' Opinion:- [By Roadmap2Retire]
I am also considering various stocks that are not currently in my portfolio, but the current high valuations do not provide many options.
Canadian National Railway (CNR.TO) engages in transportation of goods including petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, intermodal, and automotive products. The company operates 20,100 route miles of track that spans Canada adn mid-America connecting the three coasts of Atlantic, Pacific and Gulf of Mexico. CNR is a dividend contender that has been raising its dividends for 17 consecutive years and has a 5-yr DGR of 13.9% and a 10-yr DGR of 17.4%. Norfolk Southern (NSC) engages in rail transportation of raw materials, intermediate and finished goods operating approximately 20,000 router miles across the southern and eastern US. NSC and other railroads stand to benefit from the oil boom in continental US, and before permanent pipelines are put in place, railroads are the only option available to transport the huge supplies. NSC is a dividend contender raising its dividends for 12 consecutive years and has a 5-yr DGR of 10.8% and 10-yr DGR of 21.1%. Procter & Gamble (PG) and Unilever plc (UL) are giants in the consumer packaged goods field. PG has five segments - beauty, grooming, healthcare, fabric care and home care. UL has four segments - personal care, foods, refreshment and home care. PG has been raising dividends for 57 years; has a 5-yr DGR of 10.2% and a 10-yr DGR of 10.8%. UL has been raising dividends for 25 years; has a 5-yr 7.07%. Aerospace & Defense Sector: With the global turmoils continuing and the rise of new conflicts across Eastern Europe and Middle East, I am considering adding some exposure to the Aerospace & Defense Sector. I recently posted an article regarding the current valuation of the stocks in the sector here. Index Funds - China ETF, Emerging Markets - I am considering adding a new index fund to my portfolio to track the Chinese marke
Top Freight Companies To Invest In 2014: TNT Express NV (TNTE)
TNT Express NV is the Netherlands-based express delivery company. It collects, transports and delivers documents, parcels and freight on a time-certain or day-definite basis. The Company operates worldwide with domestic, regional and intercontinental delivery. It has own operations in more than 60 countries and can deliver to more than 200 countries through own operations, subcontractors and agents. Its customers are international companies, as well as small and medium enterprises. The Company serves industries such as technology, automotive, industrial, healthcare and lifestyle, as well as financial institutions and governments. The Company operates interconnected international air and road networks. The air network consists of a central air hub in Liege, Belgium, and a fleet of more than 50 aircrafts. The road networks are operated in Europe, the Middle East, Asia, Australia and South America. Advisors' Opinion:- [By Robert Wall]
One of the country�� largest employers with more than 150,000 staff, Royal Mail has shifted away from letters to more lucrative package shipping, competing with TNT Express NV (TNTE) of the Netherlands and Deutsche Post AG (DPW)�� DHL Express.
- [By Inyoung Hwang]
TNT Express NV (TNTE) lost 4.3 percent to 6.33 euros, its lowest price in four months. PostNL NV, the Dutch mail service with operations in the U.K. and Germany, said it will sell about half of its 29.8 percent stake in the Dutch package-delivery company to reduce debt. The 15 percent stake up for sale is valued at about 540 million euros ($738 million), according to data compiled by Bloomberg. PostNL gained 1.8 percent to 4.17 euros.
Top Freight Companies To Invest In 2014: Forward Air Corp (FWRD)
Forward Air Corporation operates in two segments: Forward Air, Inc. (Forward Air) and Forward Air Solutions, Inc. (FASI). Through the Company's Forward Air segment, it is a provider of time-definite surface transportation and related logistics services to the North American deferred air freight market. It offers its customers local pick-up and delivery (Forward Air Complete) and scheduled surface transportation of cargo. It transports cargo that must be delivered at a specific time but is less time-sensitive than traditional air freight. As of December 31, 2011, it operated its Forward Air segment through a network of terminals located on or near airports in 85 cities in the United States and Canada, including a central sorting facility in Columbus, Ohio and 12 regional hubs serving key markets. It also offers its customers an array of logistics and other services including expedited full truckload (TLX); dedicated fleets; warehousing; customs brokerage; and shipment consolidation, deconsolidation and handling. During the year ended December 31, 2011, approximately 23.9% of the freight it handled was for overnight delivery, approximately 61.3% was for delivery within two to three days and the balance was for delivery in four or more days. Through its FASI segment, it provides pool distribution services throughout the Mid-Atlantic, Southeast, Midwest and Southwest continental United States. Pool distribution involves managing high-frequency, last mile handling and distribution of time-sensitive product to destinations in geographic regions. In March 2013, it acquired Total Quality, Inc. In February 2014, Forward Air Corporation acquired Central States Trucking Co. and Central States Logistics, Inc. from Central States Inc.
Forward Air
The Company receives freight from air freight forwarders, integrated air cargo carriers and passenger and cargo airlines at its terminals, which are located on or near airports in the United States and Canada. It also picks up freight from custo! mers at designated locations via our Forward Air Complete service. It transports these shipments by truck through its network to its terminals nearest the destinations of the shipments. It operates scheduled service to and from each of its terminals through its Columbus, Ohio central sorting facility or through one of its 12 regional hubs. It also operates scheduled shuttle service directly between terminals where the volume of freight warrants bypassing the Columbus, Ohio central sorting facility or a regional hub. When a shipment arrives at its terminal nearest its destination, the customer arranges for the shipment to be picked up and delivered to its final destination, or it, in the alternative, through its Forward Air Complete service, deliver the freight for the customer to its final destination. Its airport-to-airport network consists of terminals located in the 85 cities. As of December 31, 2011, independent agents and FASI operate 18 and two of its Forward Air locations.
The Company operates direct terminal-to-terminal services and regional overnight service between terminals where justified by freight volumes. It provides regional overnight service to the markets within its network. Direct shipments also reduce the likelihood of damage because of reduced handling and sorting of the freight. It operates regional hubs in Atlanta, Charlotte, Chicago, Dallas/Ft. Worth, Denver, Kansas City, Los Angeles, New Orleans, Newark, Newburgh, Orlando, and Sacramento. During 2011, the average weekly volume of freight moving through its network was approximately 34.0 million pounds per week. During 2011, its average shipment weighed approximately 717 pounds and shipment sizes ranged from small boxes weighing only a few pounds to large shipments of several thousand pounds.
The Company�� logistics and other services allow customers to access services from a single source: expedited full truckload (TLX); dedicated fleets; customs brokerage, such as assistance with the United States C! ustoms an! d Border Protection (U.S. Customs) procedures for both import and export shipments; warehousing, dock and office space; drayage and intermodal; hotshot or ad-hoc ultra expedited services, and shipment consolidation and handling, such as shipment build-up and break-down and reconsolidation of air or ocean pallets or containers.
Forward Air Solutions
Through the Company�� FASI segment, it provides pool distribution services through a network of terminals and service locations in 19 cities throughout the Mid-Atlantic, Southeast, Midwest and Southwest continental United States. Pool distribution involves managing high-frequency handling and distribution of time-sensitive product to destinations in specific geographic regions. Its customers for this product are regional and nationwide distributors and retailers, such as mall, strip mall and outlet-based retail chains. Its pool distribution network consists of terminals and service locations in the 19 cities. Its Forward Air wholesale customer base is comprised of freight forwarders, integrated air cargo carriers and passenger and cargo airlines. Its air freight forwarder customers vary in size from independent, single facility companies to international logistics companies, such as SEKO Worldwide, AIT Worldwide Logistics, Expeditors International of Washington, Associated Global, UPS Supply Chain Solutions and Pilot Air Freight. Its FASI pool distribution customers are consisted of national and regional retailers and distributors, such as The Limited, The Marmaxx Group, The GAP, and Aeropostale. The Company also participates in air cargo and retail trade shows and advertise its services through direct mail programs and through the Internet via www.forwardair.com and www.forwardairsolutions.com.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Forward Air (Nasdaq: FWRD ) , whose recent revenue and earnings are plotted below.
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