War had little trucking impact

May 22, 2003
The war in Iraq may have had little economic impact on the trucking industry. Jeff Chung, head of the logistics practice at California-based investment bank USBX Advisory Services, said the war indirectly affected trucking through high fuel prices. However, Chung told Fleet Owner that the economy in general is what dictates the fate of the industry. "Right now, the economy isn't picking up much and
The war in Iraq may have had little economic impact on the trucking industry.

Jeff Chung, head of the logistics practice at California-based investment bank USBX Advisory Services, said the war indirectly affected trucking through high fuel prices.

However, Chung told Fleet Owner that the economy in general is what dictates the fate of the industry.

"Right now, the economy isn't picking up much and as a result there's not much if any freight market growth," Chung said.

Chung added that many larger fleets are posting profits mainly derived from cost-cutting initiatives and "windfall freight" gained from the collapse of Consolidated Freightways (CF) last year.

He said the incremental growth pace of the U.S. economy right now is still making it hard for fleets to obtain freight rate increases.

About the Author

Sean Kilcarr | Editor in Chief

Sean Kilcarr is a former longtime FleetOwner senior editor who wrote for the publication from 2000 to 2018. He served as editor-in-chief from 2017 to 2018.

 

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