OTTAWA, Ont. In a continuation of a disturbing trend, for-hire motor carrier revenues dropped in the third quarter of 2007, according to data published by Statistics Canada today.
Revenues for Canada’s 3,551 for-hire motor carriers earning at least $1 million annually have been in steady decline all of 2007 and likely are in decline in 2008.
The $7.1 billion in revenues generated in the third quarter was down 1.9% from the third quarter of 2006. Lower revenues from transborder shipments was the main cause.
In another disturbing trend, cost declines are not keeping pace with the dropping revenues. As a result, motor carriers’ operating ratio (operating expenses divided by operating revenues) deteriorated to 0.94 from 0.93.
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