WASHINGTON, D.C. — Small and large trucking companies alike are suffering from rising fuel costs.
FedEx has slashed its profit outlook based on higher fuel costs and reduced demand for services. And smaller trucking companies continue to fold.
“Trucking companies are getting squeezed at both ends by fuel costs and the fact that high gasoline costs are hurting consumers,” Lee Klaskow, an analyst at Longbow Research told Reuters. “Smaller trucking companies in particular face extremely stiff headwinds.”
“There’s been plenty of pain from low volumes in the trucking sector and everyone’s hanging on for the turnaround,” added Keith Schoonmaker, an analyst at Morningstar.
Some analysts have suggested the industry will benefit if smaller operators are squeezed out of the market.
– With files from Reuters
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