Freight Slump May Continue Into First Half of ’08, Report Says

U.S. railroads and trucking companies may see weak demand at least through the first half of next year, according to a report from Fitch Ratings, Bloomberg reported.

Railroads may fare better than truckers because tighter rail capacity will help boost rates,
Fitch analyst Stephen Brown wrote in a report, Bloomberg said.

The outlook reflects the effects of the U.S. housing slump and global deterioration in credit markets. Fitch predicts U.S. economic growth of 1.7% next year, down from 1.8% for 2007, Bloomberg reported.

“Pricing in the truck sector will remain competitive, although the steep decline in truck deliveries in 2007 combined with normal equipment retirements should help to improve the capacity situation somewhat,” the report said.