On Thursday, shares of FedEx (NYSE:FDX) declined in premarket trading as the company’s forecast withdrawal alarmed about softening consumer demand and hammered equities in the sector worldwide.

Besides FedEx, Hong Kong’s Cathay Pacific Airways and France-based transporter CMA CGM also indicated that consumers save for essentials such as gas and food as surging prices discourage casual shopping.

Memphis-based firm, considered the leader of the broader logistics sector, fell 19 per cent to USD 165.67 after it pulled a financial forecast it had issued three months ago.

Rival United Parcel Service shed 6.8 per cent, XPO Logistics fell 11.2 per cent, and e-commerce giant Amazon declined 2.8 per cent, while US stock futures were knocked down overnight after FedEx’s results.

FedEx’s weak result underlines the challenging macroeconomic setting as elevated inflation and concerns about slowing global growth cut shipping volumes. However, it is also believed that FedEx’s dour performance in the first quarter is mostly a company-specific issue.