BMO Trucking Credit: The END of Transparent Data? | FreightWaves
The trucking industry is losing a critical source of credit insight as BMO sells its transportation finance unit. FreightWaves’ John Kingston, who pioneered tracking BMO’s unique data, reveals how trucking credit quality is finally strengthening just as this transparent data source disappears. He also dives into rising diesel prices, heating oil’s election impact, and the […] The post BMO…
BMO is selling its transportation finance unit to Stonepeak, ending a valuable source of credit insight for the trucking industry. This unique data, tracked by FreightWaves for six to seven years, will no longer be available, potentially hindering transparency in truck credit metrics. The sale is expected to close in the fourth quarter, marking the end of a once rare and transparent look at loan quality across the trucking cycle.
The data includes crucial metrics like size of lending book, write-offs, provisions, allowances, and gross impaired loans, which paint a detailed picture of credit stress in trucking. Recently, BMO's write-offs dropped significantly, while allowances decreased, indicating an overall improvement in credit quality. However, this progress could be jeopardized with the loss of the transparent data source.
The diesel market is currently facing challenges, with the DOE Energy Information Administration's weekly retail diesel price hitting its highest level since military action began in the Middle East. Refinery maintenance season also adds pressure, with some facilities scheduled maintenance programs booked two to three years in advance, making deferrals difficult despite the incentives to maximize run rates due to high crack spreads.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
