As major indices on Wall Street bounced back on news of a two-week cease fire in the Iran war, sourcing industry stocks rode the bandwagon. While investors pushed up the Dow Jones Industrial Average and the Nasdaq up over 2.8 percent each, shares of logistics, freight, trucking, shipping and supply chain technology showed gains of between 2 and 5 percent.
Trading volume was light for many shares across the industry, suggesting that investors remained cautious. There were some declines too, as investors took profits after reaching higher values. The Descartes Systems Group Inc., for example, dropped 3.1 percent to $67.32 in trading today, which followed a jump in its stock price late last month.
But the bulk of shares were up.
Global logistics and integrated freight segment, shares of FedEx Corp., United Parcel Service (UPS) and DHL Group and rose significantly. FedEx closed the day up 4.6 percent to $373.30 while UPS saw a 2.94 percent gain to close at $100.44. DHL rose 5.7 percent to end the day at $48.33. Shares of DSV A/S, the global freight forwarding and supply chain solution provider, increased 3.6 percent to $217.30 while Kühne + Nagel, the sea, air, and overland logistics and contract logistics provider, gained just 0.1 percent to finish at $183.25.
On the heavy asset rail and trucking front, shares of Union Pacific and CSX Corp. showed gains of 1.2 percent and 1.7 percent, respectively. CSX ended at $42.14 while Union Pacific closed at $249.12. Shares of Old Dominion Freight Line rose 4.3 percent to wrap up at $207.53 while J.B. Hunt Transport closed the day with robust gains of 3.2 percent to close at $224.63.
In the transportation and sourcing services segment, C.H. Robinson Worldwide, Expeditors International and Landstar System all showed gains. C.H. Robinson Worldwide wrapped up the day with a 3.8 percent gain to close at $172.42. Expeditors International increased 1.4 percent to close at $146.61, while Landstar System rose 2.8 percent to $171.45.
In the global maritime and port operations segment, which includes companies that control the movement of raw materials as well as finished goods across oceans, there were gains, but Wall Street was less inspired.
COSCO Shipping, a major Chinese state-owned enterprise dominant in Pacific trade routes, had its share gain 0.7 percent to $15.20 while ZIM Integrated Shipping, an asset-light global container liner focused on niche routes, had its stock rise just 0.5 percent to $26.42.
