- Logistics and transportation companies fell sharply in today’s global stock market rout, underscoring how much the companies stand to lose if global economic growth and trade continue to slow.
- FedEx (NYSE:FDX) fell ~9% early before mounting a partial recovery to end -4.9%, while other global carriers suffered declines, with UPS -3.6% and DHL parent Deutsche Post (OTCPK:DPSGY) ending -4% in German trading; A.P. Moeller-Maersk (OTCPK:AMKAF), which holds the world’s biggest container shipping capacity, ended -6.5% in Copenahgen.
- The group has enjoyed a 48% increase in revenues in the last five years to $751B in 2014, according to Stifel, as companies have increasingly looked abroad to source and sell their products and supply chains have grown more complex.
- U.S. trucking companies also sold off: YRCW -6.3%, XPO -2.4%, ECHO -4.2%.