Swift Transportation cuts outlook

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News report from The Wall Street Journal on one of North America’s largest trucking firms, which last week said it was likely to earn less this year than previously forecast because of a curious anomaly currently hitting the US road transport market: although capacity is shrinking in the face of rising volumes and squeezed supply, major shippers are so concerned about securing space that they are locking trucking companies into long-term contracts which offer carriers lower margins. As a result, the peak season pressure, which should see freight rates jump, has failed to materialise.