FedEx Corp. and competing cargo airlines are finding theiryields squeezed in an economy that Alan Greenspan once observed isputting good things in ever-smaller packages.
Both FedEx and United Parcel Service Inc. have posted drops inrevenue per package this year. With clients used to paying byweight, softer demand from a weakening global economy has hamperedthe carriers' ability to change the way they set rates.
“If weight per shipment was going up, that was always a goodsign,” said Kevin Sterling, a BB&T Capital Markets analyst inRichmond, Virginia, who has a buy rating on both companies. “Thatis no longer a valid key statistic to look at to determine if thefreight economy is improving. Everything seems to have gottenlighter.”
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