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Fitch Ratings says that U.S. transportation growth to remain “steady”

Fitch Ratings says that U.S. transportation growth to remain “steady”

Renegotiated trade agreements and steeper tariffs are likely to affect import/export volumes overall, say analysts

Logistics Management
By Patrick Burnson, Executive Editor · April 4, 2018

According to Fitch Ratings in its latest U.S. Transportation Trends special report, recent trade friction between the United States and China and the prospects for higher interest rates are not likely to affect growth for the major transportation segments for the foreseeable future.

Nonetheless, analysts warn that borrowing for capital programs may be curbed somewhat should the Federal Reserve continue to raise interest rates.

“High concentrations of fixed-rate debt in the transportation sector should offset any ripple effect higher interest rates could create," said Senior Director Chad Lewis.

Senior Director Emma Griffith added that renegotiated trade agreements and steeper tariffs are likely to affect import/export volumes overall, with some U.S. ports possibly feeling the effects more acutely.

"Ports that handle large volumes of steel and aluminium are likely to bear the initial brunt of new tariff policy, though the full effect of these changes will take years to fully materialize," she added.

In an interview with LM, Griffith said that  Fitch was tracking the ports of Mobile and Houston for the first impact... FULL ARTICLE

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