Cuts in government spend affect logistics and transportation providers

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The sequestration takes its next federal victim and this time, it’s the US defense department. US activities in the Middle East have been something of a cash cow for some logistics firms. However, federal expenditure cuts could cause smaller providers to cease operations, while FedEx could lose 50% of the value on USTRANSCOM contracts, and UPS could see a decline of about 14%, according to this article, which looks into the effects of the changes on freight movements. And there’s a wider article on the impact on logistics, here.