OTTAWA, Ont. — Canada’s top carriers were in the precarious situation in the third quarter of watching their costs rise as fast as their revenues, financial data released by Statistics Canada this morning reveals.
The top 97 for-hire carriers (Canadian-based trucking companies earning $25 million or more annually) generated operating revenues of $2.6 billion and operating expenses of $2.4 billion in the third quarter of 2008.
For these carriers, the year-over-year growth rates for operating revenues and for operating expenses were identical (+2.1% each) in the third quarter.
Although that continued the steady but moderate year-over-year growth recorded so far in each of the first three quarters of 2008 the fact that costs have not been curtailed is an issue considering the current economic climate.
In the third quarter, the operating ratio (operating expenses divided by operating revenue) remained unchanged from the previous year at 0.95. A ratio greater than 1.00 represents an operating loss. Many analysts believe that makes 5 cents on the dollar is right at the edge of what motor carriers need to stay healthy.
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. All posts by Truck News