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Revenues and costs heading in wrong directions for motor carriers

OTTAWA, Ont. Data released today by Statistics Canada confirm the continuation of three trends for motor carriers...


OTTAWA, Ont. Data released today by Statistics Canada confirm the continuation of three trends for motor carriers: slumping overall revenue growth, rising costs, and the growing importance of domestic shipments.

For-hire trucking companies based in Canada with annual revenue of $1 million or more generated operating revenue of $7.1 billion in the fourth quarter of 2007, up less than 1% from the previous year. Growth in revenue earned from hauling domestic shipments (+5%) offset a decline in revenue (-7%) from transborder shipments.

Domestic freight has been growing faster than transborder freight since 2003.

These companies reported operating expenses of $6.8 billion, 2% higher than a year earlier and a larger increase than that of operating revenue. As a result, the operating ratio (operating expenses divided by operating revenue) deteriorated to 0.95 from 0.94 a year ago.


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