MEDIOCRE AT BEST The CCJ Top 250’s specialized carriers fared best – and worst – in 2007. But most general freight carriers saw anemic growth – or none at all. BY AVERY VISE t the time, most trucking Three carriers that were in A widespread slowdown companies probably saw last year’s CCJ Top 250 – No. The CCJ Top 250’s growth slowed A2007 as fairly miserable – 67 Performance Transportation further in 2007. Revenues grew 3.9 soft freight demand, ample capacity Services, No. 88 Jevic Transportation percent, down from the 9 percent and high fuel prices. Diesel averaged and No. 248 Alvan Motor Freight – increase recorded the year before and $2.89 a gallon in 2007, rising steadily ceased operations this year and so the 16.1 percent rise in 2005 over throughout the year from a low have been dropped from this year’s 2004. For LTL and truckload gen- of $2.41 in January to an unprec- CCJ Top 250. Fuel wasn’t the lone eral freight carriers – the majority of edented $3.44 by late November. culprit. For example, the troubled the CCJ Top 250 – 2007 was truly a For many, those were the good old automobile industry contributed to lackluster year. In fact, 2007 was just days. Today’s diesel prices are more the demise of Alvan Motor Freight another 2006 for LTL carriers, which than 35 percent higher than even the and car hauler PTS, which shut saw no change in revenues. Truckload highest average price during 2007. down in bankruptcy principally due general freight carriers posted a 3.3 Escalating prices coupled with the lag to a Teamsters strike. Other carri- percent gain as a group. between fuel purchasing and fuel sur- ers that have survived have suffered Only one group in the CCJ Top charge payments put severe strains on severe financial distress. For example, 250 – tank and bulk carriers – saw smaller carriers in particular. But fuel Missoula, Mont.-based Jim Palmer higher revenue growth in 2007 than in prices and other economic weaknesses Trucking – No. 226 in this year’s CCJ 2006. Together, those carriers’ revenue have taken their toll on the nation’s Top 250 – filed for Chapter 11 bank- increased 9.6 percent – up from the 4.9 leading trucking companies as well. ruptcy protection in July. percent growth they posted in 2006. 56 Commercial Carrier Journal August 2008 CCJ0808_Top250_Opening.indd 56 7/28/08 6:11:23 PM CCJ TOP 250 Percent of Percent of Revenue change carriers 2007 revenue 2007 from 2006 Acquisitions apparently played a BY SEGMENT significant role in the growth of the LTL General Freight 14% 16% no change tank truck segment. The second- Truckload General Freight 44% 24% 3.3% largest tank carrier, Trimac, posted Flatbed & Heavy Haul 11% 2% 6.5% Household Goods 4% 4% -4.2% a 16.3 percent revenue gain, no doubt in large part to its acquisition Motor Vehicles 3% 1% -9.0% of Logistics Express in June 2007. Package & Small Shipments 2% 48% 5.6% Ruan Transportation, which isn’t Refrigerated Products 8% 2% 6.2% much smaller than Trimac, saw a Tank Truck & Bulk Commodities 13% 3% 9.6% 26.7 percent increase in revenues, in part because of its acquisition of Jim 13.8 percent increase in revenue. 2007 demand, this year’s surge in Aartman Inc. in January 2007. Jim Excluding Maverick yields 5.3 percent trucking failures could boost both Aartman was No. 210 in last year’s growth for the segment. volume and pricing for the nation’s CCJ Top 250, but it did not report A single refrigerated carrier, C.R. leading carriers. revenues. Removing Trimac and Ruan England, had an even greater impact on On the surface, it seems as if the from the calculation leaves tank/bulk the performance of its sector in the CCJ pullback in capacity began in 2007. haulers in the CCJ Top 250 with a 5.1 Top 250. Together, revenues at refriger- For the entire CCJ Top 250, revenues percent revenue growth. ated carriers rose 6.2 percent. But C.R. grew 3.9 percent while the growth in Other groups posted significant England, the nation’s largest refrigerated tractors and drivers practically was nil revenue growth – just not as strong trucking company, posted revenue gains at 0.2 percent and 0.4 percent, respec- as in 2006. Despite continued trou- of 15.3 percent. A dramatic increase in tively. The number of trailers actually bles in the housing market, flatbed the England Dedicated business was at dropped 2.4 percent. Those figures are and heavy-haul carriers in the CCJ least partially responsible for the strong skewed, however, by the dominance Top 250 posted the second-highest results. Without C.R. England’s results, of the package/courier giants UPS and growth rate of 6.5 percent. Again, refrigerated carriers’ revenue growth FedEx and, to a lesser extent, DHL. consolidation may have played a role. would be 3.5 percent. Those companies, which together The nation’s largest flatbed carrier, The other two major groups of posted a revenue increase of 5.6 per- Maverick USA, acquired Schneider’s specialized carriers in the CCJ Top 250 cent, represent nearly half of all the rev- Specialized Division in mid-2006. A – motor vehicle haulers and household enues rung up by the CCJ Top 250. full year of results following this siz- goods movers – suffered significant Excluding the package carriers from able expansion in 2007 compared to revenue declines, which isn’t surprising the comparison of revenues, equip- only about half a year in 2006 likely given the troubles in the automotive and ment and drivers paints a very dif- figured significantly into Maverick’s housing sectors. Revenues for moving ferent picture for the CCJ Top 250 in companies fell 4.2 percent in 2007, while 2007. Revenues rose only 2.1 percent, ABOUT THE CCJ TOP 250 vehicle transporters’ revenues declined 9 while the number of tractors and trail- The CCJ Top 250 is the most compre- percent. Revenues for Active USA, which ers increased 3.4 percent and 3.3 per- hensive ranking of U.S. for-hire car- specializes in transporting medium- and cent, respectively. The group’s driver riers. The ranking takes into account heavy-duty trucks, plummeted 71.6 per- force rose 2.3 percent. This growth, not only the revenues posted by a cent – the largest drop in the entire CCJ mild as it is, sounds implausible given trucking company but also its fl eet Top 250 – no doubt due to the truck the effects of the truck pre-buy and size and employment base. The size pre-buy that accelerated its 2006 rev- softness in freight demand. It’s pos- of a carrier’s truck, tractor and trailer enues and put the brakes on 2007. sible, however, that acquisitions and fl eet indicates its level of invest- the fact that the pre-buy continued ment, while driver employment Plenty of capacity? several months into 2007 helped boost and owner-operator arrangements Surging fuel costs don’t necessar- the CCJ Top 250’s results. suggest a carrier’s value as a supplier of jobs. For a detailed explanation ily mean that 2008 is shaping up as Ultimately, the question of what of the CCJ Top 250 ranking meth- worse than 2007. By most accounts, happened to capacity in 2007 largely odology, see page 70. In addition to the surge in diesel prices this year is may be moot. Diesel prices and detailed information on the CCJ Top what began to trim trucking capacity other factors in 2008 have settled the 250, the editorial package includes significantly. With freight demand issue, and brighter days likely are a ranking of carriers within their trending slightly ahead of the weak ahead for the CCJ Top 250. industry segments. Turn the page for the CCJ Top 250® foldout Write 346 on Reader Service Card Bridgestone_CCJ0808PG058.indd 1 7/23/08 12:04:18 PM CCJ0808_Top250_PAGES_57-64.indd 57 8/7/08 11:20:18 AM 1 = Footnote NR = Not ranked Revenue (in 000) Equipment Drivers Overall TL = Truckload Blended LTL = Less-than-truckload 1-50 All Owned Leased Owner- Ranking Trucks & Total Total Total Trucks & Owned Trucks & Leased Company Operators Total 2007 2006 Company City & State Industry Segment 2007 2006 % Change Tractors Trucks Tractors Trailers Tractors Trailers Tractors Trailers Drivers & Agents Drivers 1 1 UPS/United Parcel Service, Inc. 1 Atlanta, GA LTL Packages 49,692,000 47,547,000 4.3 99,900 93,600 6,300 21,800 99,900 21,800 0 0 100,000 0 100,000 2 2 FedEx Corp. *(cal. yr. rev) 2 Memphis, TN LTL Packages 36,390,000 33,970,000 6.7 61,096 39,507 21,589 65,868 40,030 64,604 21,066 1,264 77,151 21,066 98,217 3 3 YRC Worldwide, Inc. 3 Overland Park, KS LTL General Freight 9,621,316 9,918,690 -3.1 26,822 452 26,370 87,941 24,426 84,317 2,396 3,624 43,154 0 43,154 4 5 DHL Express USA, Inc. (‘07 rev. est. for U.S.) 4 Plantation, FL LTL Packages 4,242,000 4,050,000 4.5 20,600 20,000 600 800 8,200 400 12,400 400 9,000 12,000 21,000 5 7 Swift Transportation Co., Inc. Phoenix, AZ TL General Freight 3,265,000 3,172,790 2.8 17,927 0 17,927 50,013 11,674 50,013 6,253 0 17,900 2,950 20,850 6 4 Con-way, Inc.