‘Smorgasbord’ of Clients Feeds Hauler

Hauling freight for oil and gas exploration companies used to be the mainstay of Acme Truck Line. But years of cyclical booms and busts demonstrated that it needed other sources of revenue to continue growing.

The price of oil, which fluctuates on a daily basis, determines how much money oil companies are willing to spend on exploration, which in turn, affects the rig count in the Gulf of Mexico. Hauling equipment for those rigs is the bread-and-butter business for Acme and other trucking companies along the coast of Louisiana. If there are fewer rigs working, there are fewer trucks running.

According to the Baker Hughes Rig Counts, the number of oil rigs working off the shores of the United States has fluctuated much in the last eight years, from a low of 40 in May 1992 to a high of 142 in April 1998. As of May 14, Louisiana accounted for 88 of the 98 offshore operations in U.S. coastal waters.

With such swings in business, Acme needed to diversify. That’s why this “oil field hauler” began offering other services, including intermodal, logistics, courier and air freight.

“In terms of markets and industries, right now, the oil field still represents the majority of our business,” said Mike Coatney, president of the company. “But it’s a cyclical business. Every three or four years, you’re going to have a peak, and then for a couple of years, it’s going to go down. It’s kind of like a yo-yo, and sometimes the yo-yo hits pretty hard.”

As a cushion against the mood swings of oil and gas exploration, Coatney strives to keep his service offerings and customer base as broad as possible. By keeping a wide repertoire, he insulates the company from downturns in any one segment.

For the full story, see the May 24 print edition of Transport Topics. Subscribe today.