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Waste companies, recycling centers and commodity traders pay Toppoint Holdings Inc. to move materials to ports for export. Waste-paper transportation brings in most of its revenue; it also carries scrap metal and logs. Customers can use its services for loading, trucking, moving containers through ports and unloading, rather than arranging each step separately.
Import-container delivery is its next-largest revenue source. Toppoint moves containers from Newark and Philadelphia ports to customers’ locations and works with importers to pair inbound deliveries with export loads using the same container. It relies on owner-operators and independent contractor drivers rather than company-owned trucks, adding outside carriers when capacity is insufficient. Keeping those operators available is central to fulfilling orders, and their work is subject to Department of Transportation safety and driving-hours requirements.
Customers include Waste Management, Georgia-Pacific and Cellmark Inc. Its ten largest customers supply more than half of revenue, generally without guaranteed minimum shipping volumes. The business therefore depends on those customers’ shipping activity, particularly export demand for waste paper, as well as inbound container traffic.
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Toppoint’s results hinge on waste-paper export demand, import-container volumes and prices for short-haul port trucking against competitors such as Evans Delivery Company—not broad parcel-delivery trends.
Waste Management is one of Toppoint’s top customers, paying it to transport recyclables for export, while Waste Management collects waste and recyclables for businesses, households and local authorities. Its Recycling Processing and Sales business is the part to watch for clues about Toppoint’s recycling-export hauling demand.
EIA Crude Oil Stocks Change (Oct/16)
The weekly US crude oil and gasoline stocks report tracks how much crude oil and fuel is held in storage; for Toppoint, inventory-driven fuel-price changes can affect the diesel costs its owner-operators pay and the transportation costs not recovered through surcharges.
Expected-0.3MLast release-8.557M
If it comes in above expectations
If the reading is above the -0.3M estimate, it is above the previous -8.557M. Larger-than-expected stocks tend to ease fuel prices, which may lower owner-operators’ diesel costs and reduce pressure on Toppoint when fuel surcharges do not fully or promptly offset the change.
If it comes in below expectations
Smaller-than-expected stocks tend to lift fuel prices, which may raise owner-operators’ diesel costs and increase pressure on Toppoint if fuel surcharges do not fully or promptly offset the change.
Waste Management, Inc. earningsWM
Waste Management’s Recycling Processing and Sales business will show whether this major Toppoint customer is still moving recyclables toward export, supporting Toppoint’s export-hauling demand.
Watch whether Waste Management’s Recycling Processing and Sales business strengthens or weakens. Stronger activity would suggest more recyclable material moving into export channels, giving Toppoint a chance to keep hauling freight for this major customer. Weaker activity could mean less freight from that source; customer changes matter particularly because Toppoint’s ten largest customers account for about 59% of its revenue.
Industrial Production MoM (Oct)
Industrial production tracks output from factories, mines and utilities; for Toppoint, stronger output can mean more paper, scrap-metal and log export loads to haul and more transportation revenue, while weaker output can mean fewer loads.
Stronger factory, mine and utility output may support Toppoint’s paper, scrap-metal and log export loads; weaker output may reduce them. The effect depends on whether demand for the commodities it hauls rises or falls.
