Freight Carrier Executives See LTL and Truckload Shipments Spike as Truckers Find Freight

Frozen Food Express Industries (Dallas based refrigerated truck food carrier with truckload

, less than truckload freight, and third party logistics services) released its financial results for the second quarter of 2010. Frozen Food Express is truly a major nationwide leading temperature controlled truckload and less than truckload carrier inside the lower 48 United States. The principal emphasis of the carrier is to transport temperature controlled as well as frozen perishables for the health care, confectionary, and food markets. The carrier additionally operates a third party logistics (3pl) division to be able to exceed specifications of shippers and some other freight brokerage customers.

The Carrier's CEO reported the carrier had put a larger stress on service quality and freight truck utilization. Mr. Stubbs feels the focus on preservation of moneymaking customers will boost margins in truckload and increase tonnage and shipment volume on the less than truckload (LTL) division as well. A combination of an exodus of competitors and decline in available capacity has improved the freight transportation and logistics marketplace. Most of these financial elements permitted Frozen Food Express to reduce their pre-tax loss by more than 41%.

Despite revenue simply creeping up 9%, the use of existing equipment, increase in pricing, and lack of competitors permitted for these improved final results. Regarding the last six months however, the operating revenue had decreased more than 3%. Tractor productivity (calculated simply by revenue per truck per week) was also up by more than 4% during the quarter as the marketplace has appeared in order to turn in the favor of the freight carrier. In 2009 Frozen Food Express said they had made the decision to park a section of their particular existing tractors until the market came back. Right now the carrier seems to be putting them back into service as the industry continues to improve.

Shippers have in addition been inclined to respond to the freight marketplace furthermore. Carrier management say they have seen a willingness on part of the shippers and logistics firms to adjust discounts to be able to reflect the tightening marketplace. Truck Drivers going back to work may certainly guide the transportation industry returning to profitability as freight prices advance off of historically low levels. A lot of carriers have adopted cost-saving methods, because losses throughout the last number of years have been growing. In the course of second quarter of 2010, the majority of carriers have noticed much better results from a combination of a positive freight pricing environment and outcomes of these kinds of carrier cost saving techniques.

Frozen Food Express believes a large component of its achievements through these turbulent economic times have been the employees dedication to the company and motivation to seek new efficiencies in virtually all phases of the operation. The carrier continues to possess a strong cash position devoid of financial obligations outside of its credit agreement. Frozen Food Express has almost seven million dollars in cash, 83 million in investor equity and simply no outstanding debt. Even while the carrier is in a strong position to weather out the economic climate, the management is dedicated on continuing to manage its assets utilization as well as look for even more operational efficiencies.

It seems freight carriers have regained a foothold in the transpiration industry. A number of Carriers and third party logistics companies have reported far better than expected earnings and narrowed losses due to tightening capacity and lowered overhead. An economic recovery within the freight industry definitely seems to be underway. Let us hope the momentum enables a continual economic recovery not only for freight and transportation, but likewise for the broader economy.



Full Story Here: http://blog.freightaccess.com/2010/08/less_than_truckload_carriers_see_freight_marketplace_improving/

Freight Carrier Executives See LTL and Truckload Shipments Spike as Truckers Find Freight

By: Brad Hollister

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