I noted this chatter on Friday, but was unable to render opinion, earlier then requested. I apologies to a couple of readers who asked me about this. In short, FEDEX and UPS have been issed a subpoena
" FedEx Corp. (FD.N: Quote, Profile, Research) said on Friday that it has received a grand jury subpoena as part of a probe by the U.S. government into possible criminal violations of antitrust laws in the air cargo transportation industry.
The investigation appears to be part of global probe of airlines suspected of fixing cargo prices that began in February, when the European Union's executive arm and the U.S. Justice Department raided a number of airlines on both sides of the Atlantic. Other carriers have been asked for information."
A long time ago, I began the issue tracking , of over 20 airlines implicated in this. The Backgrounder is simple --its a matter "Price Gaging" and "undermining". It would be highly unprofessional for me to state anyone engages in such endeavors. It would be the Justice Department and ECU to make that decision -- after all facts are dissected.
However, I think the under laying principle is not about the Transportation industry but rather its the measure of economics of "regional powers" that are forcing such price movement. This obviously makes it harder for certain countries to compete in global trade. Like why I would I buy from Poland, when I can buy the same thing in Brazil. Both are identical widgets and cost the same, yet the cost of transportation is higher from Poland to Toronto, rather Brazil to Toronto. For the sakes of simplicity, just imagine I am in the equi distance from both these origins and I have to make a call on which one to buy.
Well, now you go figure.....
Update : Ahead of the bell
"Shares of FedEx Corp. and UPS Inc. could see increased movement Monday after the companies said their business records have been subpoenaed by the Justice Department for an investigation of possible antitrust violations in the air cargo industry."