5 Best Freight Stocks For 2014

Forward Air Corporation

Often times there are excellent businesses operating in industries that are either difficult to understand, obscure or unattractive. Sometimes good investments can be found in these regions precisely because of these factors as many investors don't take time to understand specific businesses or they simply don't know they exist. For whatever reason, certain industries are often overlooked and when this happens - value can often be found. One such industry in my opinion is freight logistics - including freight consolidation and freight forwarding.

Even though the big names including UPS and Fedex (FDX) are known worldwide - the logistics universe is much more nuanced and is home not only to highly efficient but prosperous operators including CH Robinson Worldwide (CHRW) and Expeditors International of Washington (EXPD) - two companies that have produced excellent results and solid dividends for shareholders over the course of their history. A smaller company focused on air freight logistics that has recently caught my interest is the Forward Air Corporation (FWRD).

Top 10 Shipping Companies To Own In Right Now: Vitran Corporation Inc (VTNC)

Vitran Corporation Inc. (Vitran), incorporated on April 29, 1981, is a provider of freight surface transportation and related supply chain services throughout Canada 34 states in the eastern, southeastern, central, southwestern, and western United States. The Company�� business consists of Less-than-truckload services (LTL). These services are provided by stand-alone business units within their respective regions. Vitran�� business is carried on through its subsidiaries, which hold the licenses and permits required to carry on business. As of December 31, 2012, Vitran�� principal wholly owned operating subsidiaries included Vitran Express Canada Inc. (Ontario), Can-Am Logistics Inc. (Ontario), Vitran Logistics Ltd. (Ontario), Expediteur T.W. Ltee (Canada), Vitran Corporation (Nevada), Vitran Express Inc. (Pennsylvania), Vitran Logistics Corp. (Delaware), Vitran Logistics Inc. (Indiana), and Las Vegas/L.A. Express, Inc. (California). In March 2013, Vitran Corp Inc completed divestiture of its Supply Chain Operation division to Legacy Supply Chain. In October 2013, Vitran Corporation Inc. completed the sale of its United States LTL business.

LTL Services

Within Canada, the Company provides next-day service within Ontario, Quebec and parts of western Canada, and generates its revenue from the movement of LTL freight within the three- to five-day east-west service lanes. The majority of its trans-Canada freight is shipped intermodally, whereby the Company�� containers are loaded onto rail cars and trans-loaded to Vitran facilities where Vitran�� network of owner operators pick up and deliver the freight to various destinations. During 2012, Vitran�� Canadian LTL business represented approximately 27.6% of total LTL revenues. Vitran�� Transborder Service Solution (inter-regional) provides over-the-road service between its Canadian LTL and United States LTL business units.

Advisors' Opinion:

• [By Monica Gerson]

  Breaking news

  Vitran Corporation (NASDAQ: VTNC) announced today that it has entered into a definitive arrangement agreement with TransForce pursuant to which TransForce has agreed to acquire all of the outstanding common shares of Vitran not already owned by TransForce for US$6.50 in cash per share, in accordance with TransForce's prior proposal. To read the full news, click here. ReneSola (NYSE: SOL) today announced it signed a Memorandum of Intent (MOI) to sell three utility-scale projects in Western China, with a total capacity of 60MW, to Jiangsu Akcome Solar Science & Technology Co on December 30, 2013. To read the full news, click here. Cooper Tire & Rubber Company (NYSE: CTB) today announced it has terminated the merger agreement with Apollo Tyres (NSE:ApolloTYRE). To read the full news, click here. RedHill Biopharma (NASDAQ: RDHL) today announced that it has entered into a definitive agreement with leading healthcare investor OrbiMed Israel Partners Limited Partnership, an affiliate of OrbiMed Advisors LLC, for the sale of RedHill's American Depository Shares and warrants in a private placement transactionor a total sum of $6.0 million. To read the full news, click here.

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5 Best Freight Stocks For 2014: Universal Truckload Services Inc (UACL)

Universal Truckload Services, Inc., incorporated on December 11, 2001, is engaged in providing transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. The Company�� over-the-road trucking services include both flatbed and dry van operations and it provides rail-truck and steamship-truck intermodal support services. It also offers truck brokerage services, as well as full service international freight forwarding and customs house brokerage services. The Company provides truckload transportation and related services for a range of general commodities over irregular routes using dry and specialty vans and un-sided trailers, including flatbed, drop deck, and specialty. In December 2013, the Company announced that it has completed acquisition of Westport Axle Corporation.

The Company primarily operates through a contractor network of agents and owner-operators who provide the Company with approximately 3,100 tractors and approximately 3,000 trailers. At December 31, 2011, the Company had approximately 565 agents. The Company conducts its operations through its wholly owned operating subsidiaries under the brand names, such as Universal Am-Can, Ltd., Mason & Dixon Lines, Inc., Louisiana Transportation Inc., Mason Dixon Intermodal, Inc., Economy Transport, Inc., Great American Lines, Inc., Universal Logistics Solutions, Inc., Universal Logistics Solutions International, Inc. and Cavalry Transportation, LLC.

The Company provides services in three categories, such as truckload services, brokerage services and intermodal support services. The Company transports a range of general commodities, including machinery, building materials, paper, food, consumer goods, automotive parts, furniture, steel and other metals. During the year ended December 31, 2011, its truckload operations represented 60.5%, of its operating revenues.

The Company provides primarily broker freight to third-party transportation providers th! rough its agent network at times when the Company generates more freight business than it can service with its available owner-operators. The Company offers full service international freight forwarding and customs house brokerage services, as well as third-party logistic services. During 2011, its brokerage services represented 24.8%, of its operating revenues. Its intermodal support services are primarily short-to-medium distance delivery of rail and steamship containers between the railhead or port and the customer and drayage services. During 2011, its intermodal support services represented 14.7% of its operating revenues.

The Company�� agents provide the primary interaction with its shippers. They generate freight shipments and also provide terminal and dispatch services for the owner-operators and are an essential source for recruitment of new owner-operators. The agents use a company-provided software program to list available freight procured by the agent, dispatch owner-operators to haul the freight and provide all administrative information necessary for it to establish the credit arrangements for each shipper. The owner-operators are individuals who own, operate and maintain one or more tractors that they either provide drivers, or drive themselves. The Company�� owner-operators provide it with approximately 3,100 tractors. Owner-operators also may own trailers that they provide the Company in addition to their tractor and driving services. As of December 31, 2011, its owner-operators provided approximately 3,000 trailers, which represent over 50% of the trailers the Company use in its business.

Advisors' Opinion:

• [By Sean Williams]

  What: Shares of Universal Truckload Services (NASDAQ: UACL  ) , a North American provider of trucking and logistics solutions, jumped as much as 12% after receiving an upgrade from BB&T�Capital Markets.

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Universal Truckload Services (Nasdaq: UACL  ) , whose recent revenue and earnings are plotted below.

5 Best Freight Stocks For 2014: TNT Express NV (TNTE)

TNT Express NV is the Netherlands-based express delivery company. It collects, transports and delivers documents, parcels and freight on a time-certain or day-definite basis. The Company operates worldwide with domestic, regional and intercontinental delivery. It has own operations in more than 60 countries and can deliver to more than 200 countries through own operations, subcontractors and agents. Its customers are international companies, as well as small and medium enterprises. The Company serves industries such as technology, automotive, industrial, healthcare and lifestyle, as well as financial institutions and governments. The Company operates interconnected international air and road networks. The air network consists of a central air hub in Liege, Belgium, and a fleet of more than 50 aircrafts. The road networks are operated in Europe, the Middle East, Asia, Australia and South America. Advisors' Opinion:

• [By Robert Wall]

  One of the country�� largest employers with more than 150,000 staff, Royal Mail has shifted away from letters to more lucrative package shipping, competing with TNT Express NV (TNTE) of the Netherlands and Deutsche Post AG (DPW)�� DHL Express.

• [By Inyoung Hwang]

  TNT Express NV (TNTE) lost 4.3 percent to 6.33 euros, its lowest price in four months. PostNL NV, the Dutch mail service with operations in the U.K. and Germany, said it will sell about half of its 29.8 percent stake in the Dutch package-delivery company to reduce debt. The 15 percent stake up for sale is valued at about 540 million euros ($738 million), according to data compiled by Bloomberg. PostNL gained 1.8 percent to 4.17 euros.

5 Best Freight Stocks For 2014: Chalmers Ltd (CHR)

Chalmers Limited is an Australia-based company engaged in transport, logistic services, warehousing and container storage, repairs and sales. The Company operated in three segments: Transport, Containers and Property. Transport consists of road transport, predominantly import/export FCL containers and the interface with logistics/ warehousing/hubbing services. Containers represent the empty container park operations concerned with handling, storage, repairs, upgrades, pretrips and so on of empty containers on behalf of shipping and leasing company customers. Property represents the capital investment Chalmers has in freeholds located in Melbourne. The Company�� subsidiaries include Chalmers Industries Pty Ltd, Chalmers (Australia) Pty Ltd and Chalmers Industries (Brisbane) Pty Ltd. Advisors' Opinion:

• [By Corinne Gretler]

  Chr. Hansen A/S (CHR) slid 1.7 percent to 186 kroner after Credit Suisse Group AG cut the stock to neutral, the equivalent of hold, from outperform. The brokerage said that profit from its natural-color business remains under pressure. The world�� biggest maker of dairy enzymes cut its full-year sales forecast on July 3 because of lower prices for the red pigment carmine.