Michael Triano's questions to Hub Group Inc (HUBG) leadership • Q4 2024
Question
Michael Triano of UBS asked if customers are showing increased interest in converting truckload freight to Intermodal due to recent market tightening. He also inquired about customer inventory levels and whether any widespread inventory builds are occurring.
Answer
CFO Kevin Beth confirmed that Hub Group is having constructive discussions with customers about truck-to-rail conversions, noting that the company's strong service performance during peak season is building customer confidence. Executive Phillip Yeager stated that they are not seeing widespread inventory builds, as most customers are focused on rightsizing their stock. He suggested a potential tariff situation could be an impetus for future pull-forwards, but nothing is happening yet.