LTL carriers get more competitive as demand slowdown continues

195004 Resource 165493 94146 94146 1200593542265 1201280155036 Controlled LTL carriers’ margins are decreasing with more competitive pricing

LTL carriers have to be more aggressive on pricing to keep the volume due to overcapacity in the network.

LTL Carriers are reporting a decrease in demand and an increase in price competition. The increasing price of fuel is reducing the margin which LTL carriers make on a shipment. FedEx Freight in 2007 reduced its fuel surcharge which is putting pressure on other LTL carriers to either increase their discounts or adjust their fuel surcharge. Alan Graf, FedEx Corp.’s CFO stated “Since September, our fuel costs have increased more than 8%, or $85 million." JPMorgan analyst Thomas Wadewitz said “he expects LTL carriers to continue to increase capacity going into 2008 and sees carriers getting more competitive on pricing.” 9 application/xml false Fuel Surcharge LTL LTL carriers get more competitive as demand slowdown continues Purchasing.com http://www.purchasing.com/article/CA6518769.html?industryid=48397 Mozilla/5.0 (Windows; U; Windows NT 6.0; en-US; rv:1.8.1.11) Gecko/20071127 Firefox/2.0.0.11 127.0.0.1 127.0.0.1 Establish 208.105.4.154 false true false false true 187565 false false true false false false true 165493 blog blogsite/ChinaSupplyChain/web