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

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


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.


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