Why FedEx and UPS Don't Reflect the Overall Economy

Discussion in 'The Latest UPS Headlines' started by cheryl, Jul 28, 2010.

  1. cheryl

    cheryl I started this. Staff Member

    Why FedEx and UPS Don't Reflect the Overall Economy - Seeking Alpha

    Strong earnings and increased forecasts from UPS (UPS) and Federal Express (FDX) lifted hopes of the economic bulls. Sorry. They are gaining market share on other carriers, online retailers are gaining market share and companies are running leaner inventories and using “just right now” shipping to keep inventories lean.

    The freight forwarding and air cargo business has a great many smallish companies that are flexible, nimble, and cater to certain industries such as pharmaceuticals. They are going out of business due to the recession and a pullback in credit lines. Go back through industrial directories and yellow pages and you will see the proof.

    When the final revisions to GDP are ready three years from now, they will show a flat economy or slightly negative growth in Q2. Ignore the bulls, the double dip is here, right now.