Essendant Collaborates with Hub Group to Introduce Managed Delivery System for 48-Hour Warehouse Deliveries
Strategic Partnership Announcement: Essendant has partnered with Hub Group to implement a Managed Delivery model, enhancing its supply chain strategy to achieve 48-hour warehouse deliveries across nearly all major U.S. markets.
Operational Efficiency: The partnership combines Hub Group's extensive carrier network and final mile facilities with Essendant's distribution capabilities, aiming to streamline multi-stop truckload shipments and improve delivery reliability with a 95% on-time service rate.
Scalable Delivery Model: The Managed Delivery program, set to launch on November 1, 2025, features a flexible structure designed to adapt to changing customer needs and market conditions.
Essendant's Commitment: With a century-long heritage, Essendant focuses on delivering value through disciplined supply chain solutions, while Hub Group emphasizes service, efficiency, and innovation in transportation and logistics management.
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Cass Transportation Index: Freight Market Softness with Rising Rates
- Volume Decline: The Cass Freight Index reported a 7.2% month-over-month drop in shipments for December, with a year-over-year decline of 7.5%, indicating softness in the freight market despite stabilizing prices, highlighting industry challenges.
- Elevated Expenditures: Although expenditures fell by 1.9% month-over-month in December and only 0.6% year-over-year, this reflects persistent high freight costs that have not decreased as much as shipment volumes, following significant increases in 2021 and 2022.
- Truckload Index Recovery: The Cass Truckload Linehaul Index rose by 1.0% month-over-month in December and posted a 1.8% increase for 2025, recovering from declines of 10% in 2023 and 3.4% in 2024, indicating gradual market recovery.
- Future Demand Outlook: Cass Information Systems suggests that after significant destocking in Q4, a favorable Supreme Court ruling on IEEPA tariffs could act as a positive catalyst for freight demand moving forward.
Major Analyst Recommendations for Friday: Nvidia, Apple, CoreWeave, Broadcom, Alphabet, Netflix, and Others
Wall Street Upgrades and Initiations: Several firms have upgraded or initiated coverage on various stocks, including Nvidia, Vital Farms, and CoreWeave, highlighting strong growth potential in sectors like AI and agriculture.
Positive Outlook for Lithium and Health Insurance: UBS upgraded Albemarle due to expected lithium market growth, while Jefferies expressed bullishness on Humana, citing its competitive advantages in the health insurance sector.
Tech Stocks Performance: Mizuho and CLSA reiterated positive ratings for Broadcom and Apple, respectively, with expectations of strong earnings and revenue growth driven by AI and consumer demand.
Market Reactions and Downgrades: Baird downgraded Synchrony, citing overvaluation, while other firms like Morgan Stanley and Wells Fargo initiated coverage on logistics and biotech companies, indicating a mixed sentiment in the market.
