Transportation companies' guidance are often great gauges of the economy's health. When the economy is good, more goods are produced and more are shipped, benefiting these companies. And also vice versa. United Parcel Services-the world's largest package delivery company- and Burlington Northern Santa Fe- a Forth-Worth based major Class I railroad-cautioned investors in their 3Q earnings announcement that this year's surge in peak-season deliveries is likely to be the weakest since 2003.
The holiday shopping season is "not dead on arrival, but it's a dud," according to Matthew Rose, BNSF's chairman, president and chief executive officer. " Meanwhile,
Scott Davis, vice chairman and chief financial officer at UPS, said the Atlanta company expects an "OK season, just not as robust as we've seen in the past four years. We expect slowing retail sales will restrain U.S. domestic volume growth."
Nonetheless, both companies are expecting decent growth on international shipping.
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