Mr. Seidl: Expectations for the group were high in early 2007 as investors were hoping that the freight sector would rally from the slide that started in the third quarter of 2006. Unfortunately, as we progressed through 2007, it became clear that the second half turnaround was not going to materialize. In essence, we were in for what I would deem a "freight recession" for about a year, and I believe we still remain in that state here in early 2008. However, the transportation space performed as expected with the railroad industry outperforming the trucking space.
TWST: Did that freight recession lead the way into the general economic downturn
that we seem to be seeing now?
Mr. Seidl: I think this time it did lead the way for the economy. This has
translated into increased interest in the transportation space by the investment
community. If you think about it, the companies that I cover pretty much haul
all of the bulk materials and all of the finished goods in this country. If the
transportation carriers are experiencing difficult times, it cannot bode well
for the economy.
Tickers included in this excerpt: CNW, CVTI, FDX, JBHT, ODFL, UPS, WERN
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