Today's Pickup: How A Canadian Carrier Recession-Proofed Its Business
Before Ted Daniel started Canadian cross-border carrier Titanium Transportation Group (TSX-V:TTR), he specialized in helping turn around distressed companies. It's perhaps no surprise that the CEO and his wife, Chief Operating Officer Marilyn Daniel, built a company that they call "recession-proof."
"We didn't realize the magnitude of what this really meant until we faced a once-in-a-lifetime world shutdown pandemic," Ted Daniel told financial analysts on May 13 after reporting a 13.6% surge in revenue in first-quarter financial results.
While Titanium's U.S. brokerage business supplied growth during the quarter, its core Canadian-based truckload business saw a small dip. Key to that stability is not depending on any single customer. Daniel said no shipper accounts for more than 6% of Titanium's business.
The mix of freight its 475 power units haul in Canada and the U.S. is also a key. The company has extensive exposure to essential consumer goods at multiple levels – from raw materials to finished goods.
Did you know?
The United States-Mexico-Canada Agreement goes into force on July 1. U.S. Customs and Border Protection recently opened an office in Washington to coordinate the implementation of the trade agreement.
Quotable:
"The supply chain is fully integrated with the United States and that is why we must reactivate ourselves as a nation. If not, we put ourselves at risk in the face of competition from other areas of the world."
– Miguel Elizalde, president of Mexican commercial vehicle producer group ANPACT, on the shutdown on vehicle production.
In other news:
Driver denied sick leave for coronavirus gets back pay
An Indiana truck driver who was denied emergency sick leave after getting COVID-19 symptoms received about $3,000 in back pay following a decision by the U.S. Department of Labor. (WBIB)
Fuel hauler focuses on loyalty to get through pandemic
A fuel-hauling carrier in Illinois sees sticking by its loyal customers as an essential part of surviving COVID-19. (Fleet Owner)
Truckstop owner donates free identity protection for drivers
The owner of a truckstop and software company in California is providing free business identity protection services to truck drivers. (Paso Robles Daily News)
COVID-19 spreading in East Africa trucking corridors
A growing number of coronavirus cases among truck drivers raising alarms in East Africa. (Barron's)
Final thoughts:
Titanium is one of just three publicly traded trucking companies in Canada – and the smallest, with a market cap of C$42 million. But interesting things continue to happen at the carrier, particularly as it continues the expansion of its U.S. brokerage business and keeps an eye out for acquisitions on both sides of the border.
Hammer down, everyone!
Photo: Titanium Transportation Group
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