What makes "asset-heavy" transportation companies different from other logistics businesses?

Asset-heavy transportation companies own their vehicles—trucks, ships, planes, and vans—rather than primarily renting or contracting them. This ownership gives them complete control over their operations, helps them guarantee service during shortages, and often allows for better quality control and reliability. While these companies require more capital investment, they typically have stronger barriers to competition and more pricing power than asset-light brokers who simply coordinate shipments using other companies' vehicles.

What does "less-than-truckload" (LTL) shipping mean?

Less-than-truckload (LTL) shipping is when multiple shipments from different customers share space on the same truck. Unlike full truckload shipping where one customer's freight fills an entire truck, LTL carriers like ODFL, XPO, and SAIA combine smaller shipments going in similar directions. This service is ideal for businesses that don't have enough merchandise to fill a whole truck. LTL carriers operate complex networks of terminals where freight is sorted and consolidated, requiring significant infrastructure and expertise.

What is "dry bulk shipping" and why is it important?

Dry bulk shipping refers to the transportation of unpackaged bulk cargo—like coal, grain, iron ore, and cement—in the holds of specialized vessels. Companies like SBLK, DSX, and GOGL own these massive ships that carry the raw materials fueling the global economy. These vessels are the workhorses of international trade, moving commodities between continents in the most cost-effective way possible. Investing in dry bulk shipping provides exposure to global commodity demand and trade patterns.

Why does supply chain resilience benefit these companies?

Supply chain resilience has become a priority for businesses after recent global disruptions exposed vulnerabilities in just-in-time systems. Companies that own their transportation assets can guarantee capacity regardless of market conditions—a valuable proposition when third-party carriers are unavailable or extremely expensive. As businesses rebuild more robust supply chains, they increasingly partner with logistics providers who control their own networks. This shift creates a significant advantage for the fleet-operating companies in this stock group, potentially leading to stronger customer relationships and more stable revenue.

What does "Market Cap" tell me about these transportation companies?

Market capitalization (Market Cap) represents the total dollar value of a company's outstanding shares, calculated by multiplying the current stock price by the number of shares. For transportation companies, market cap often reflects the scale of their operations and fleet size. Larger market cap companies like UPS and FedEx typically operate massive global networks with thousands of vehicles, while smaller market cap firms might focus on specific regions or shipping types. Market cap can help you understand a company's relative size in the industry and its potential resources for fleet expansion or weathering economic downturns.

15 handpicked stocks

Delivery Masters

These carefully selected companies own the trucks, ships, and planes that keep global goods moving. By controlling their own transportation networks, they have a powerful edge in today's complex supply chains. Our analysts have handpicked firms with significant fleet ownership for your consideration.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17