Bankruptcies, Business Failures, Layoffs, etc

103-year-old meat producer forced to seek bankruptcy protection

finance.yahoo.com

103-year-old meat producer forced to seek bankruptcy protection

Deli meat producer Freirich Foods claims “temperature abuse” of tons of corned beef at a third-party cold storage facility is the reason it was forced to file for bankruptcy protection. The post 103-year-old meat producer forced to seek bankruptcy protection appeared first on FreightWaves.
finance.yahoo.com finance.yahoo.com

 
Guard Dad said:
I have to wonder, with all these freight carriers going under, what's going to happen to the supply chain? Will it get worse again?
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That is why I am wondering "It’s ugly right now and likely only to get worse." that Jman posted is due to not enough ways to move the freight in a timely manner, or is it that too many forwarders are chasing a shrinking market of freight to be moved.

The forwarding community usually sees a recession coming before other industries. All of a sudden yearly predictions for sales don't match the business coming in the doors, and layoffs start.
 
They will likely consolidate. It’s really nothing unusual, the freight industry seems to go thru cycles every so many years. One thing I’ve noticed about those filing for bankruptcy protection….most have huge amounts of debt on their books. Aside from freight volume being down, higher interest rates are killing businesses burdened with debt.

When I referred to things getting worse I meant freight volumes are low in many traffic lanes and freight rates are at or near 15 year lows. Sounds great until you realize insurance, repairs, tires, and fuel costs are not low but are high and climbing. Generally speaking there’s just not a lot of profit in the freight industry at the moment. It’s all about survival, at least on the trucking side.
 
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J-man said:
They will likely consolidate. It’s really nothing unusual, the freight industry seems to go thru cycles every so many years. One thing I’ve noticed about those filing for bankruptcy protection….mist have huge amounts of debt in their books. Aside from freight volume being down, higher interest rates are killing businesses burdened with debt.
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And fuel and labor costs.

The young guy next door to my (former) office started running a local delivery truck about four years ago. He made money at first, but the last year he's been badly in the red. He came and talked to me about it to get my opinion. He said all costs were up; fuel, insurance, he was having to pay drivers more even while getting worse employees, etc. He finally sold the truck and shut it down two weeks ago. He's going back to turning wrenches, which is what he's very good at.
 
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Guard Dad said:

U.S. Money Supply Is Doing Something No One Has Witnessed Since the Great Depression, and It Foreshadows a Big Move to Come in Stocks​


www.fool.com

U.S. Money Supply Is Doing Something No One Has Witnessed Since the Great Depression, and It Foreshadows a Big Move to Come in Stocks | The Motley Fool

M2 money supply hasn't made a move this pronounced since the early 1930s.
www.fool.com www.fool.com
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You can feel something is in the air, I have a feeling it’s the overdue correction.
 
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