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Nick
Carey of Reuters reported YRC CEO Zollars as stating that parts of the U.S. economy may already be in
recession and the U.S. Federal Reserve should cut rates by up to 50
basis points to boost economic growth. Zollars is the top executive of North
America's largest trucking company, YRC Worldwide.
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Reuters further quoted Zollars as saying;
" I think the Fed needs to do more to help boost the economy.
They should cut rates by at least a quarter point, or a half point."
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Last month Zollars told Reuters that he thought the
U.S. economy faced a "more than 50-50 chance of a
recession." "We are pretty much in the same downward
trajectory right now," Zollars stated this past Friday. "Regardless
of what you call it, it's pretty tough out there for a lot of people
right now."
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| The U.S. trucking sector has struggled
with declining freight volumes since the third quarter of 2006. Some
analysts and truck company officials say the sector is in the midst of a
"freight recession." |
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As well as slowing economic growth, the industry
has been hurt by the housing slowdown, declining auto sales by U.S.
domestic automakers and lackluster retail sales.
|
| Oil's rise to nearly $100 a barrel has
not helped trucking companies or their clients. "The price of oil is really
hurting our customers right now," Zollars said. |
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Like many transportation companies, YRC passes on the
higher fuel costs to customers via fuel surcharges. With
all these headwinds, Zollars said, "It's not clear when this
(U.S. economic growth) is likely to turn around."
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In trade on
Nasdaq YRC shares were trading up 14 cents at $16.67. YRC
hit a 52-week high of $47.09 on Feb 22. The shares reached a 52-week
low this Wednesday of $15.87.
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| Report Source: http://www.guardian.co.uk/feedarticle?id=7098870
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| Original report by Nick
Carey, editing by Phil Berlowitz at Reuters |
