Tough times to turn around for trucking industry
by March 16, 2009 2:01 pm 76 views
Times are tough for trucking operations like Fort Smith-based Arkansas Best Corp. and Van Buren-based USA Truck Inc., but if they can hang on, the future is bright.
The American Trucking Associations reports in its “U.S. Freight Transportation Forecast to 2020” that freight tonnage will grow more than 26% and total freight transportation revenue will grow 68%.
“Like many other industries, trucking is experiencing a very difficult time during the current economic recession,” ATA President and CEO Bill Graves noted in a statement. “Yet, all signs point to a strong, vital, long-term future for our industry. Trucking exclusively serves 80% of all communities in the U.S. for the products and goods they receive. When the recovery begins, trucks will help lead the way.”
Arkansas Best posted 2008 net income of $29.16 million, a drop from its 2007 net income of $56.82 million. Its revenue in 2008 was $1.833 billion, slightly below the $1.836 billion in 2007. The company recorded a fourth-quarter net income loss of $10.97 million, compared to a net income of $13.48 million in the same quarter of 2007.
Total revenue for USA Truck in 2008 was $535.62 million, up over the $482.1 million in 2007. It’s fourth quarter 2008 net income was $599,000, compared to a net income loss of $1.57 million in the same period of 2007. Fourth quarter 2008 revenue was $116.16 million, down from $122.52 in revenue during the fourth quarter of 2007. The company has cut almost 20% of its non-driver workforce to respond to the downturn in freight volume.
Other findings from the ATA study include:
• Trucks’ share of total tonnage will rise gradually from 68.8% in 2008 to 70.9% by 2020.
• Rail’s overall share (carload plus intermodal) of total tonnage will slip slightly from 14.9% to 14.7% by 2020.
• Air cargo tonnage is estimated to grow from 14.5 million tons in 2008 to 22 million tons in 2020.
The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its 50 affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.