Frozen Food Express Industries (Dallas located refrigerated truck food carrier with truckload, less than truckload freight, and third party logistics solutions) released their financial outcomes for the second quarter of 2010. Frozen Food Express is truly a top nationwide leading temperature controlled truckload and less than truckload carrier in the domestic United States. The main focus of the carrier is to haul temperature controlled along with frozen perishables for the health care, confectionary, and food markets. The carrier also operates a third party logistics (3pl) division so as to exceed demands of shippers as well as other freight brokerage customers.
The Company's CEO suggested the carrier had put a higher focus on service excellence and asset utilization. Mr. Stubbs believes that the focus on preservation of moneymaking clients will improve margins in truckload and increase tonnage and shipment count on the less than truckload (LTL) division as well. A combination of an exodus of competitors and reduction in available capacity has improved the freight transportation and logistics marketplace. These types of economic elements permitted Frozen Food Express to lower their pre-tax loss by more than 41%.
Even with revenue only slightly up 9%, the use of existing equipment, increase in pricing, and lack of competition permitted for these enhanced final results. Regarding the previous six months however, the operating revenue had dropped even more than 3%. Tractor productiveness (measured by revenue per truck per week) was additionally up by a lot more than 4% during the quarter as the market has appeared in order to turn in the favor of the freight carrier. In 2009 Frozen Food Express mentioned they had made the decision to park a portion of their particular existing tractors until finally the marketplace came back. Now the carrier appears to be putting all of them back into operation as the industry continues to recover.
Shippers have in addition been prepared to react to the freight marketplace additionally. Carrier management say they have found a willingness on part of the shippers and logistics firms to adjust pricing in order to reflect the tightening marketplace. Truck Drivers returning to work will certainly aid the transportation industry returning to profitability as freight prices advance off of historically low levels. A lot of freight carriers have put into practice cost-saving techniques, as losses throughout the last number of years have been growing. Throughout second quarter of 2010, the majority of carriers have seen much better results from a combination of a positive freight pricing environment and results of these carrier cost saving techniques.
Frozen Food Express says a significant component of its success through these turbulent economic times have been the employees loyalty to the company and willingness to look for new efficiencies in virtually all phases of the operation. The carrier continues to possess a good cash position devoid of financial obligations outside of its credit agreement. Frozen Food Express possesses almost seven million dollars in cash, 83 million in investor equity and simply no outstanding debt. While the carrier is in a solid position to weather out the economic climate, the management is dedicated on continuing to manage its assets utilization as well as seek out even more operational efficiencies.
It seems freight carriers have regained a foothold in the transpiration industry. Several Carriers and third party logistics firms have reported far better than expected earnings and narrowed losses due to tightening capacity and lowered overhead. An economic recovery inside the freight industry definitely appears to be underway. Let's hope the momentum allows a continual economic recovery not only for freight and transportation, but also for the broader economy.
Full Story Here: http://blog.freightaccess.com/2010/08/less_than_truckload_carriers_see_freight_marketplace_improving/
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