Strong Economy Didn't Boost Profits in 1999

It should have been a banner year for trucking companies in 1999. The U.S. economy was robust and demand for freight-hauling was strong. Although bedeviled by a shortage of drivers and rising fuel costs during the second half of the year, many trucking executives and industry analysts thought they saw an end to overcapacity and a real opportunity to raise rates and boost razor thin profit margins.

	CON = Contract HHG = Household Goods HS = Heavy Specialized LTL = Less-Than-Truckload	MV = Motor Vehicle OS = Other Specialized REF = Refrigerated TL = Truckload TANK = Tank Truck

Unfortunately, it was another disappointing year for trucking’s bottom line.

An analysis of financial and operating reports filed with the Department of Transportation’s Bureau of Transportation Statistics by Transport Topics shows that revenue for a group of 129 large carriers — excluding United Parcel Service and FedEx Ground — increased 8.5% to $39.11 billion in 1999, up from $36.05 billion in 1998. However, net income for the same group of carriers actually fell to $1.12 billion in 1999, from $1.23 billion during the previous year.

Hardest hit overall were the tank truck and refrigerated segments of the industry, although some specialized carriers and vehicle haulers posted large losses for the year.

For the full story, see the July 31 print edition of Transport Topics. Subscribe today.