Navistar, which makes commercial trucks, diesel engines, and buses, is benefitting from a rise in demand for freight trucks, as well as a jump in fleet utilization.
The demand for freight is highly correlated with economic conditions.
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Huge Chinese demand and high freight prices are keeping foreign steel away from the U.S. And smart expansion strategy has solidified USS' position.
Sales of medium and heavy trucks and buses plunged 39% to 19, 095 vehicles, hurt by slowing economic growth, reduced freight transportation, and lower demand in sectors such as mining.
The primary factor in the decline in stock price for the two firms was the weak demand for coal freight services, a trend which will affect CSX in Q4 2012 and will likely to do so over the next few quarters.
And consumer tastes for out-of-season vegetables, exotic fish and fresh flowers have also added to the demand for air-freight services.
All is at a delicate equilibrium, until the owner feels compelled to give in to a firmly worded request from the retailer for an additional discount, or a demand to air-freight, at manufacturer's expense, some boxes of shirts that suffered a two-week production delay and now won't be accepted by the retailer if they're any later than they already are.
Impressive growth in air freight is largely a result of growing demand for transportation for high-value and perishable consumer goods.
He fears cheap Brazilian sugar, decisions from Brussels and China's demand for steel, which is pushing freight rates higher.
Freight rates hit a record low Wednesday on weak demand for iron ore, poor weather conditions in mining regions and a glut of shipping capacity.
Since it takes two years to build a container ship, freight capacity is inflexible, so small changes in demand can cause marked changes in price.
Anand, a former chairman of India's Railway Board, argues that a move in that direction is logical in India, where passengers, by and large, are becoming more expensive, as they demand more space and comfort, while freight by contrast costs less, as improved technology leads to better and faster use of space.
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Freight transport accounts for 40% of the growth in demand, partly because trucks are growing more efficient at a slower rate than cars.
As its chairman, Sir Alastair Morton, has made clear, many billions of pounds need to be invested in the railways by the government, as well as private investors, over the next decade to meet projected demand for rail services by both passengers and freight.
Automotive freight revenue primarily increased due to higher vehicle production, which has seen increases to meet pent up demand created by the high average vehicle age in the U.S. However, as individuals continue replace old vehicles, we might see growth in this segment moderate going forward since vehicles are not a commodity purchased by an individual customer on a recurring basis.
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