FedEx outlook seen ominous for truckers

Cybergal · May 12, 2008

FedEx outlook seen ominous for truckers
5/12/08

CHICAGO (Reuters) - FedEx Corp's Friday reduction of its profit outlook because of high fuel costs and weak demand is a bad omen for small U.S. trucking companies that have been hammered by both.
"Trucking companies are getting squeezed at both ends -- by fuel costs and the fact that high gasoline costs are hurting consumers," said Lee Klaskow, an analyst at Longbow Research. "In recent downturns the (U.S.) consumer has shouldered the burden and eased the blow for trucking companies, but this time they may not be able to because of the price of fuel.
"Smaller trucking companies in particular face extremely stiff headwinds."
The U.S. trucking sector has been hit by weak demand since the third quarter of 2006, caused by lackluster retail and auto sales, the housing sector meltdown and faltering U.S. economic activity. Excess truck supply has pushed prices down, as competition for business is fierce.
http://www.reuters.com/article/reutersEdge/idUSN1228824520080512
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BigDiesel · May 12, 2008

Of course FedEx, UPS are going to be doom and gloomers and spin to their advantage...... They want all the freight !!!

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