{"id":3404,"date":"2022-07-22T17:49:22","date_gmt":"2022-07-22T17:49:22","guid":{"rendered":"https:\/\/cantruck.ca\/mullen-no-signs-of-freight-recession-but-supply-chain-issues-holding-economy-back\/"},"modified":"2025-01-10T16:43:09","modified_gmt":"2025-01-10T16:43:09","slug":"mullen-no-signs-of-freight-recession-but-supply-chain-issues-holding-economy-back","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/mullen-no-signs-of-freight-recession-but-supply-chain-issues-holding-economy-back\/","title":{"rendered":"Mullen: No Signs of Freight Recession, but Supply Chain Issues Holding Economy Back \u00a0\u00a0\u00a0"},"content":{"rendered":"
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Merger and acquisition activity and an ability to pass along price increases were the drivers behind the strong second quarter growth for Mullen Group, said its chairman Murray Mullen, who also added that while the pace of growth will moderate, he doesn\u2019t see any signs of a significant slowdown anytime soon.<\/span><\/p>\n<\/div>\n

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\u201cWhat about this freight recession investors are spooked about? I don\u2019t see it,\u201d Mullen said in a conference call with analysts. \u00a0\u201cDemand is not collapsing. There\u2019s less capacity to move available freight\u2026our results should be just fine, especially with sticky freight rates.\u201d<\/p>\n<\/div>\n

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As Truck News<\/i> reports, the company said revenues were driven by general pricing increases and steady customer demand in all four operating segments backstopped by consumer spending and overall economic activity that remained at elevated levels throughout the quarter.<\/p>\n<\/div>\n

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\u201cOur strong performance was achieved despite overall economic activity continuing to be negatively impacted by bottlenecks and supply chain disruptions, limiting growth in the economy as well as being a major reason productivity has deteriorated and inflationary pressures remain higher than normal,\u201d he said.<\/p>\n<\/div>\n

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Mullen explained that he anticipates the strong job market will keep consumer spending from crashing \u2013 a sentiment he said he hears from industry peers on both sides of the border.<\/p>\n<\/div>\n

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\u201cWe have not seen any meaningful decline in demand,\u201d he said. \u201cI know the markets are anticipating the freight recession, and once social media gets a hold of it, everybody thinks it will happen until new data comes out that challenges the new thesis.\u201d<\/p>\n<\/div>\n

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However, Mullen cautioned, \u201cWe don\u2019t see any growth. We can\u2019t add growth because we can\u2019t get equipment, can\u2019t get people, and we\u2019ve lost productivity.\u201d<\/p>\n<\/div>\n

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He feels there\u2019s more supply-side risk than demand-related risk.<\/p>\n<\/div>\n

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\u201cOur warehouses are plugged, we can\u2019t get rail service, we\u2019re losing trucking capacity because of high fuel prices.\u201d<\/p>\n<\/div>\n

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But what really worries Mullen is the impact supply chain challenges have on independent contractors, especially when it comes to parts shortages.<\/p>\n<\/div>\n

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\u201cWhere independent contractors are at real risk is the availability of parts,\u201d he said. \u201cThey are not easy to get right now. If an independent contractor\u2019s truck goes down because a clutch went out, it can be down quite a while and that\u2019s 100% of your fleet.\u201d<\/p>\n<\/div>\n

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Full story here.<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Merger and acquisition activity and an ability to pass along price increases were the drivers behind the strong second quarter growth for Mullen Group, said its chairman Murray Mullen, who…<\/p>\n","protected":false},"author":2,"featured_media":1414,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16,28],"tags":[30,21,355,33,2135,2049,2136,1187],"class_list":["post-3404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-conditions","category-labour-hr-driver-shortage","tag-capacity","tag-economy","tag-equipment","tag-freight-market","tag-mullen","tag-supply-chain-disruption","tag-supply-demand","tag-volumes"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/3404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/comments?post=3404"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/3404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media\/1414"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=3404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=3404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=3404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}