LTL Freight Shipments Increase with Freight Quotes
Frozen Food Express Industries (Dallas based frozen 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 a top national leading temperature controlled truckload and less than truckload carrier in the domestic United States. The major focus of the carrier is to carry temperature controlled and frozen perishables for the health care, confectionary, and food markets. The carrier in addition has a third party logistics (3pl) division to be able to exceed demands of shippers and also some other freight brokerage clients. The Company's CEO reported the carrier had put a greater stress on service quality and tractor utilization. Mr. Stubbs feels the particular focus upon retention of money-making clients will improve margins in truckload and increase tonnage and shipment volume on the less than truckload (LTL) division as well. A combination of an exodus of competition and decrease in available capacity has improved the freight transportation and logistics marketplace. These types of economic factors allowed Frozen Food Express to reduce their pre-tax loss by more than 41%. Despite revenue only creeping up 9%, the use of existing equipment, increase in pricing, and shortage of competition permitted for these enhanced final results. For the last six months however, the operating revenue had dropped more than 3%. Tractor production (measured simply by revenue per truck per week) was also up by a lot more than 4% during the quarter as the market has appeared to turn in the favor of the freight carrier. In 2009 Frozen Food Express mentioned that they had decided to park a section of their particular existing tractors until finally the marketplace returned. Right now the carrier seems to be putting them back into service as the marketplace continues to improve. Shippers have in addition been inclined to react to the freight marketplace additionally. Carrier executives say they have seen a willingness on part of the shippers and logistics firms to adjust pricing to be able to reflect the tightening marketplace. Truck Drivers going back to work may certainly help the transportation industry return to profitability as freight prices advance off of historically low levels. Several freight carriers have put into practice cost-saving techniques, because losses during the very last number of years have been growing. Throughout second quarter of 2010, the majority of carriers have seen improved results from a combination of a favorable freight pricing environment and results of these kinds of carrier cost saving techniques. Frozen Food Express believes a significant ingredient of its achievements through these turbulent economic times are actually the employees commitments to the carrier and willingness to seek new efficiencies in all phases of the operation. The carrier continues to possess a solid cash position without having loans 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 though the carrier is in a strong position to weather out the economic climate, the management is devoted on continuing to manage its assets utilization and also seek out even more operational efficiencies. It appears freight carriers have regained a foothold in the transpiration industry. Many Carriers and third party logistics companies have reported better than expected earnings and narrowed losses due to tightening capacity and reduced overhead. An economic recovery within the freight industry definitely appears to be underway. Let us hope the momentum enables a sustained financial recovery not only for freight and transportation, but also for the broader economy. Full Story Here: http://blog.freightaccess.com/2010/08/less_than_truckload_carriers_see_freight_marketplace_improving/ |
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