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Trucking News

Truckload trips on 1Q hurdle

Published Wednesday, March 30, 2005

Contrary to transportation analysts’ expectations of fairly robust growth in trucking through 2005, two major truckload carriers--Covenant Transport and U.S. Xpress Enterprises--expect a recent slowdown in demand to bring first-quarter losses. “The main factor affecting the quarter is softer than expected freight demand, which in turn is contributing to lower than planned tractor productivity and average freight revenue per loaded mile,” said Covenant chairman & CEO David R. Parker. In fact, in Covenant’s case, capacity has loosened enough so that shippers are actually shopping among carriers for cutthroat rates. “Some customers are using the seasonal ...

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