Those who are banking on the global economic recovery are closely eying shipping and transportation-related exchange traded funds (ETFs), but the two sectors could see very different performance through the holiday season.
UPS (NYSE: UPS) could help drive the transportation ETF. The world’s largest shipper is on target for a holiday shipping spike this year. At its peak, this season is expected to be busier than the last, the company said the 24 million shipments will be about 60% more than the 15.1 million the company ships on a normal day, according to Dow Jones Newswire on The Wall Street Journal. The busiest day is expected to be Dec. 22. [Transportation ETFs: The Good and the Bad.]
FedEx (NYSE: FDX) also has a bullish outlook for the holidays, forecasting an 11% increase in shipping between Thanksgiving and Christmas. It also expects to make history on Dec. 13 – the shipper predicts that it will ship 16 million packages around the world on that day, making it the busiest ever, reports The Orlando Business Journal.
The broader shipping sector is feeling a bit of a pinch.