Titanium grows logistics revenue as truck transport earnings slide
Titanium Transportation saw rising logistics revenue in the third quarter, while continuing tough conditions weighed on truck transportation earnings.
The company reported Q3 results of $118.4 million in revenue, up 5.1% year over year. This was driven by a 24% increase in logistics volumes, leading to an 18% year-over-year revenue gain.
The company opened an eighth U.S. freight brokerage office shortly after the end of Q3.
“During the first three quarters of the year, Titanium remained focused on navigating a challenging freight environment and strengthening our capital position,” Titanium chief executive officer Ted Daniel said in a release.
“Despite ongoing market pressures, our logistics segment delivered 24% volume growth and over 18% revenue growth in Q3 2024, reflecting modest stabilization in pricing. Economic normalization in the truck transportation industry has yet to follow. In the meantime, we proactively pursued sustainable growth opportunities and generated free cash flow to fortify our balance sheet. For the remainder of the year, we are committed to leveraging strategic investments in people and technology to position the company for long-term value creation as soon as the market recovers.”
Titanium posted a quarterly loss of $400,000 due to weak market conditions in the truck transportation segment.
“The market’s performance in the third quarter was in line with expectations, driven largely by ongoing overcapacity, especially in the truckload sector,” Daniel said. “Early signs of stabilization are emerging, though freight rates remain at relatively low levels. The rebalancing of capacity continues as fleet operators recalibrate their operations. We believe this gradual reduction of excess capacity will pave the way for improved pricing in coming quarters.”
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Reading between the lines the message here seems to be that under current rate conditions, we can’t afford to own and operate high-quality, well-maintained equipment. We can’t afford to provide our drivers with a decent living wage that includes living up to our tax and labour obligations, providing extended health care benefits or vacation pay. We can’t even pay our owner operators enough money to make their truck payments and maintain their current lifestyles. We can’t afford to staff or maintain a legally located adequately sized facility to operate our business from including adequate parking for our equipment so it isn’t parked illegally in areas not zoned or authorized for that purpose or on the shoulders of local streets and roads. Is the best solution to these problems really to go and quote more cheap freight and pimp it out to the segment of our industry that have absolutely no regard for any of the financial, legal or moral obligations listed above and are trashing our industry’s safety image and reputation in the eyes of the general public? is this not enabling the very root cause of the current state of our industry?