Source: Bloomberg
Summary
According to the TD Cowen/AFS Logistics indices, parcel firms have no reason to stop fuel surcharges, indicating a trucking recovery. The data suggests that the parcel industry will maintain its fuel surcharge, despite declining fuel prices. This move reinforces signs of a trucking recovery, as parcel firms aim to offset increased costs. The indices also show that the parcel industry’s revenue and profitability have improved.
Our Reading
The trend returns with a new name. Trucking’s recovery is nothing new, but the parcel industry’s persistence in fuel surcharges feels familiar. The cycle of increased costs and maintained surcharges continues. Parcel firms, like UPS and FedEx, reinforce the trend. The trucking recovery is a seasonal phenomenon.
Author: Evan Null
