Although recent reports noted that the LTL trucking industry (less than truckload) grew by over 9% in 2010, trucking stocks still have an uncertain future.
Rising fuel costs as well as other external factors are affecting the strength of trucking stocks.
The market as a whole has been fluctuating with little direction recently, and because of this choppiness in trading, trucking stocks have come under pressure.
On Monday, March 21, trucking stocks closed at their highest level in more than a month, however, they took a downward turn the following day.
This downward turn can partially be explained by the rise in crude oil prices of more than $1.
15 per barrel.
Expeditors International (EXPD) has become one of the trucking sector's weakest stocks, dropping more than 3%.
Several other stocks such as C.
H.
Robinson Worldwide (CHRW) and Con-Way (CNW) have also been posting significant losses.
As these large organizations continue to lose ground in the stock market, the trucking sector becomes even weaker.
The market volatility is just another obstacle in the way of the trucking industry's economic recovery.
The difficult aspect of the market at this point is that unlike in the past two years when the market was on a steady decline, the market is now undergoing uneven trading that makes it more volatile.
If crude oil prices continue to rise, it's likely that the trucking sector will continue to see fluctuating stock prices.
In addition to fluctuating stocks and rising crude oil prices (which translates into higher prices at the pump), the trucking industry is also facing a looming driver shortage.
The deck seems to be stacked against the industry at this point, however, what's bad for the trucking industry has been shown to be bad for the economy as a whole.
If the industry cannot continue its recovery from the recession, other sectors will likely suffer the effects.
With rising food costs as well as other consumer goods people who are not in the industry directly have already begun to feel the effects of the industry's volatility.
In order for the trucking sector stocks to return to a consistent level, crude oil prices will need to even out as well.
With such uncertainty in the oil markets it seems as though the trucking sector stocks are in for a long road to recovery.
With so many external factors affecting the trucking industry, it's vital that those in the industry begin to look at cutting internal costs and making processes more efficient so that they can sustain themselves during these uncertain times.
Rising fuel costs as well as other external factors are affecting the strength of trucking stocks.
The market as a whole has been fluctuating with little direction recently, and because of this choppiness in trading, trucking stocks have come under pressure.
On Monday, March 21, trucking stocks closed at their highest level in more than a month, however, they took a downward turn the following day.
This downward turn can partially be explained by the rise in crude oil prices of more than $1.
15 per barrel.
Expeditors International (EXPD) has become one of the trucking sector's weakest stocks, dropping more than 3%.
Several other stocks such as C.
H.
Robinson Worldwide (CHRW) and Con-Way (CNW) have also been posting significant losses.
As these large organizations continue to lose ground in the stock market, the trucking sector becomes even weaker.
The market volatility is just another obstacle in the way of the trucking industry's economic recovery.
The difficult aspect of the market at this point is that unlike in the past two years when the market was on a steady decline, the market is now undergoing uneven trading that makes it more volatile.
If crude oil prices continue to rise, it's likely that the trucking sector will continue to see fluctuating stock prices.
In addition to fluctuating stocks and rising crude oil prices (which translates into higher prices at the pump), the trucking industry is also facing a looming driver shortage.
The deck seems to be stacked against the industry at this point, however, what's bad for the trucking industry has been shown to be bad for the economy as a whole.
If the industry cannot continue its recovery from the recession, other sectors will likely suffer the effects.
With rising food costs as well as other consumer goods people who are not in the industry directly have already begun to feel the effects of the industry's volatility.
In order for the trucking sector stocks to return to a consistent level, crude oil prices will need to even out as well.
With such uncertainty in the oil markets it seems as though the trucking sector stocks are in for a long road to recovery.
With so many external factors affecting the trucking industry, it's vital that those in the industry begin to look at cutting internal costs and making processes more efficient so that they can sustain themselves during these uncertain times.
Source...