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Transports Not Better, 'Just Less Worse': Analyst

The transport sector saw an increase of 60 percent over the last six months, a greater percentage increase than the S&P 500, but Lee Klaskow, a transportation analyst at Longbow Research, said the fundamentals of the industry are not getting better, just "less worse."

"Car loads are still down 17 percent year over year on the rail side, and on the truck side you have tonnage down 10 to 15 percent," he added. "So things are not good, but it does appear that we're bouncing along the bottom."

Klaskow said the industry did see freight flow improvements due to the government's popular cash for clunkers program, but he said this just pushed demand forward and predicted 2010 will be weaker than anticipated as a result.