INDUSTRY PULSE: Cost control remains an issue for nations top carriers

Avatar photo

OTTAWA, Ont. — Costs continue to rise faster than revenues for Canadas largest carriers.

During the final quarter of 2006 average revenue for carriers earning over $25 million annually increased 2.3% from the fourth quarter of 2005 to $26.5 million. But average per carrier expenses increased 2.9% to $24.9 million, according to data published by Statistics Canada.

As a result, the top for-hire carriers’ operating ratio (operating expenses divided by operating revenue) stood at 0.94 in the fourth quarter compared to 0.93 in the same quarter of 2005. A ratio greater than 1.00 represents an operating loss.

In total the top 91 for-hire motor carriers of freight generated operating revenue of $2.4 billion and operating expenses of $2.3 billion in the fourth quarter, both up less than 1% from the previous quarter.

Avatar photo

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.


Have your say


This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.

*