Trucking company stocks have taken a terrifying tumble this afternoon following gloomy reports from several major companies — and experts are blaming a slowdown in U.S. manufacturing.
The plunging stocks have left many concerned that trucking companies may be forced to cut shipping rates.
Analysts say that if current trends continue, a surplus of trucks will leave carriers with no choice but to cut rates to fight for fewer loads.
Among the factors blamed for the slowdown include a strong U.S. dollar, which has made American exports less competitive, along with declining investments in domestic oil. The drought and bird flu have also been named as causes for the trucking industry’s woes.
The companies that have made investors nervous?
–UPS reported a significant drop in daily package volume.
–Roadrunner slashed its sales forecast because of weak demand and aggressive pricing practices. Roadrunner stock fell 46% today to a new all-time low for the company.
–Swift announced it would no longer be expanding its fleet to try to keep prices competitive.
–After recently acquiring Con-way, XPO Logistics stock has fallen 14%.
–YRC stocks fell 16%.