Despite popular belief, oil prices, which have been hovering around $100 per barrel for the better part of three months now, have not completely sucked the life force out of the freight sector.
On the contrary, numbers out of UTi Worldwide
Fueling growth
As mentioned above, UTi Worldwide reported an in-line, one-time costs excluded, EPS figure of $0.13, but the real story was that the company was able to pass along rising fuel costs to its customers, which helped it surpass revenue expectations. Every aspect of the company's business showed improvement with freight logistic services and air freight volumes rising impressively. Also of note, the company took a $0.05 one-time charge to exit underutilized logistics facilities in Europe, proving that it will trim the fat when needed as well. This is an all-around solid quarter for the newest addition to the S&P MidCap 400.
But it's not just UTi Worldwide who's seeing strong results -- air delivery juggernauts FedEx
While many see the earthquake in Japan or weather-related issues in the U.S. as potential pitfalls to the companies' business, I see this as an opportunity to pull market share from ground transportation stalwarts JB Hunt Transport Services
Foolish roundup
Logic would indicate that rising fuel prices should have spelled doom for this sector months ago, but the results have so far proved otherwise. Until we do see a slowdown in consumer shipping rates, you have to respect the trend and take in freight stocks with open arms and an open mind.
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