Shares of Swift Transportation fell Monday by 13 percent amid speculation that the Federal Motor Carrier Safety Administration was looking into allegations that drivers’ logbooks were falsified.
Wall Street analysts suggested that if FMCSA lowered the carrier’s safety rating, it could lead to higher insurance premiums which would cut into profits.
Swift is currently disputing a conditional rating which the agency proposed in 2001 and again last year. FMCSA officials would not comment on the new logbook allegations accept to say that they are studying the situation. Swift officials were unavailable for comment late yesterday.
Swift had planned to release it year-end and fourth quarter numbers at the end of today’s trading session. It closed Monday at $19.04/share and rose a few cents higher this morning.
