Shares of freight transportation management company Hub Group, Inc. (HUBG) fell as slower train speeds and longer dwell times by the rails are increasing costs and impacting volumes for Hub Group. These issues are likely to persist into 2015, but the railroads are taking steps to increase capacity and improve service levels. It does not appear that lower service levels are impacting shippers’ attitudes toward longer-term conversion to intermodal.
From Diamond Hill Capital (Trades, Portfolio)'s Small Cap Fund Third Quarter 2014 Commentary.
