INDUSTRY PULSE: Canadas largest carriers increase revenues but fail to keep lid on costs
OTTAWA, Ont. — Costs are rising faster than revenues for Canadas largest motor carriers, an analysis of third quarter financials released today by Statistics Canada reveals.
In the third quarter, the top 91 for-hire motor carriers of freight (Canadian-based trucking companies earning $25 million or more annually) generated operating revenue of $2.4 billion and operating expenses of $2.3 billion, both almost unchanged from the preceding quarter. However, average per carrier revenue increased 5.0% from the third quarter of 2005 to $26.4 million, while average per carrier expenses increased 5.5% to $24.7 million.
The operating ratio (operating expenses divided by operating revenue) was 0.94, compared with 0.93 in the third quarter of 2005. A ratio greater than 1.00 represents an operating loss.
The third quarter of 2006 data on the top for-hire carriers, taken from the Quarterly Motor Carriers of Freight Survey, provide results from 64 general freight carriers and 27 specialized freight carriers.
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