I Think This Is Big News. I Just Don't Know What To Think Of It.

UPS is selling off it's brokerage house, Coyote Logistics. The 3PLs have been struggling post covid era. Coyote has been producing decent revenues and remains profitable.

UPS purchased Coyote Logistics a decade ago for 1.8 billion. They are selling it now for 700 million less. It says to me, they are no longer confident in this business model. I just don't know what else to think.

Something is up, but I'm not real clear on what's happening. Does anybody else's curiosity get turned up a bit by these kind of goings on? Do any of you have any opinions or insights on this turn of events?

It just tells me that the economy is garbage and everyone needs to hold on for a wild ride. Commercial and residential real estate are tanking, the true inflation numbers aren't being reported and the majority of people are struggling to just get by. Politicians have absolutely wrecked the value of the dollar and the rest of the world has taken notice. Every empire throughout history has fallen due to ego and greed, we're watching it happen again.

I agree with all that Robert. It just seems odd.

If a person was holding UPS stock, this should be a deal breaker for them. It was one of the bright spots under their umbrella. To sell it at a 700 million dollar loss looks like desperation. I'd like to think it's not, but this is a real head scratcher for me.

Totally agree but those investors have recovered the investment and made money. The next step is to bail while there's still some value and on to the next thing. Just a few weeks ago, the tallest building in Ft Worth sold for 12mil. It cost 112mil to build. Those with money are trying to move to things to secure the wealth they have and ride the wave to see the aftermath. I've never invested in the stock market personally. I don't mind risk but I never gamble and prefer to secure what I have with precious metals and tangible items. Regardless of what happens, I'll still have my house, my vehicles, the lights will stay on and my family can eat. To me, those are the most important things.

OS I read this the other day and made me curious too. UPS has sold other lines off in the last several years. TForce bought the truckload line, which I think is tied to CFI in some form.

The big 3 brokers had the industry by the throat before covid. Brokers are popping up daily it seems. All you need is fmcsa approval and a bond. It costs about 3k and your a freight broker. The brokerage business has gotten just as competitive as trucking. UPS sold it off before it dives further in value I would guess.

Even the big brokers are feeling the pain of this long lasting rate downturn, many have gone out of business.