Today's Pickup: Celadon's accounting issues grow

  (Photo: Shutterstock)

(Photo: Shutterstock)

Good day,

Celadon is restating its earnings reports going back through at least 2014, a dramatic widening of an accounting issue first revealed almost a year ago. 

Last May, Celadon reported revenue of $978.7 million net of fuel surcharges. They said at the time that their financial statements for 2016 and the quarter ending September 30 of that year “should no longer be relied on.” Celadon’s website describes the company as the “premier NAFTA carrier” in the U.S.

The company also said that the Audit Committee had begun an investigation of the earnings, leading to Monday's announcement that the investigation had “identified errors that will require adjustments” to the financial statements from 2014, 2015, 2016 and 2017 “and potentially periods prior thereto.” The prepared statement issued late Monday by Celadon said the investigation is ongoing. For further details on the investigation and a statement from the CEO who was brought in last July, click here.

Did you know?

An index based on fleet size reveals approximately 63% of load offerings come via direct interaction between carrier and shipper, while 23% of loads came from direct contact with brokers, and 14% from the use of an online load board. Almost none of the volume currently comes from the use of digital freight apps.

Quotable:

“We sell a lot of pork to China, so higher tariffs on our exports going there will harm our producers and undermine the rural economy. No one wins in these tit-for-tat trade disputes, least of all the farmers and the consumers.”

-NPPC President Jim Heimerl, pork producer from Johnstown, Ohio

In other news:

Ryder acquires MXD Group

Ryder announces the acquisition of e-commerce fulfillment provider MXD Group for a price of $120M. (Seeking Alpha)

Less than one degree could determine ice-free arctic

A range of less than one degree Fahrenheit (or half a degree Celsius) of climate warming over the next century could make a significant difference to the probability of future ice-free summers in the Arctic, new University of Colorado Boulder research shows. (The Maritime Executive)

What will ELDs do to the noble profession of truck driving?

If long-distance trucking rates continue to escalate, the difference between air and surface transportation cost per pound could significantly decrease and make airfreight a more attractive alternative. (Air Cargo World)

UPS seen at ‘breaking point’ as pilots lament outsourcing

Pilots are angry that UPS has turned to third-party cargo airlines to help make up for a shortage of aircraft capacity, needed to handle its growing e-commerce business. (The Seattle Times)

Infrastructure investors focused on funding faster information superhighway

Investors aren’t waiting for President Trump’s infrastructure bill to construct highways — they are already busy building on the information superhighway instead. (Forbes)

Final Thoughts:

The increasing cost of transporting goods has hit the bottom lines of companies across the U.S. The industry's tight labor market is prompting carriers to offer more competitive benefit packages. Ninety percent of truckload fleets offer paid leave, while four of every five private carriers offer a 401(k) plan and matching contributions, according to the ATA study.

"Fleets are reacting to concerns about the driver shortage by raising pay and working to make the job more attractive," said Bob Costello, chief economist at ATA. "I expect that trend to continue as demand for trucking services increases as our economy grows."

Hammer down everyone!

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