LTL and Truckload Carrier Sees Spike in Tonnage and Shipments During First Half of 2010

Aug. 24, 2010 - PRLog -- Frozen Food Express Industries (Dallas located refrigerated truck food carrier with truckload, less than truckload freight, and third party logistics solutions) announced its financial results for the second quarter of 2010. Frozen Food Express is truly a major nationwide leading temperature controlled truckload and less than truckload carrier in the lower 48 United States. The major concentration of the carrier is to transport temperature controlled along with frozen perishables for the health care, confectionery, and food markets. The carrier also operates a third party logistics (3pl) division in order to exceed demands of shippers and also other freight brokerage clients.

The Company's CEO stated the carrier had put a higher emphasis on service quality and tractor utilization. Mr. Stubbs believes the focus upon retention of money-making shippers may improve margins in truckload and increase tonnage and shipment volume on the less than truckload (LTL) division as well. A combination of an exodus of competitors and decrease in available capacity has improved the freight transportation and logistics marketplace. A lot of these financial elements permitted Frozen Food Express to reduce their pre-tax loss by more than 41%.

Even with revenue merely creeping up 9%, the use of existing equipment, increase in pricing, and shortage of rivals permitted for these enhanced final results. Regarding the previous six months however, the operating revenue had decreased a little more than 3%. Tractor productivity (calculated by revenue per truck per week) was also up by much more than 4% throughout the quarter as the market has appeared in order to turn in the favor of the freight carrier. In 2009 Frozen Food Express said that they had made the decision to park a section of their particular existing tractors until the market returned. At this point the company seems to be putting them back into operation as the industry continues to strengthen.

Shippers also have been inclined to react to the freight marketplace furthermore. Carrier professionals say they have observed a willingness on part of the shippers and logistics firms to adjust pricing to reflect the tightening marketplace. Truck Drivers returning to work can definitely guide the transportation industry return to profitability as freight prices advance off of historically low levels. Many freight carriers have put into practice cost-saving methods, as losses during the very last number of years have been raising. During second quarter of 2010, many carriers have noticed much better results from a combination of a favorable freight pricing environment and results of these kinds of carrier cost saving approaches.

Frozen Food Express says a large part of its achievements during these turbulent economic times are actually the employees loyalty to the carrier and willingness to look for new efficiencies in all phases of the operation. The carrier continues to have a solid cash position devoid of loans outside of its credit agreement. Frozen Food Express also has almost seven million dollars in cash, 83 million in shareholder equity and no outstanding debt. Although the carrier is in a strong position to weather out the economic climate, the management is devoted on continuing to manage its assets utilization and look for further operational efficiencies.

It seems freight carriers have regained a foothold in the transpiration industry. Many Carriers and third party logistics businesses have reported far better than expected earnings and narrowed losses due to tightening capacity and lowered overhead. An economic recovery within the freight industry certainly appears to be underway. We should hope the momentum makes it possible for a continual economic recovery not only for freight and transportation, but likewise for the broader economy.

Full Story Here: http://blog.freightaccess.com/2010/08/less_than_truckload...

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