LTL carriers aren't doing as well as you think

Aug. 12, 2005
The big problem for LTL carriers, says analyst firm The Colography Group (www.colography.com), is that shippers have been able to resist any significant

The big problem for LTL carriers, says analyst firm The Colography Group (www.colography.com), is that shippers have been able to resist any significant rate increases, but LTL carriers are hesitant to cut their prices to gain market share out of fear their yields could slip into negative territory. The message for LTL carriers, according to Colography Group: "It will be exceedingly difficult to price their way to profitability.

Year Announced Rate Increase1 Realized Yield Growth2 Inflation3 Actual Net Yield4
1998 5.5% 3.2% 1.6% 1.6%
1999 3.9% -2.9% 2.2% -5.1%
2000 4.9% 7.1% 3.4% 3.8%
2001 5.8% 0.9% 2.8% -1.9%
2002 6.4% 1.9% 1.6% 0.4%
2003 6.1% 2.8% 2.3% 0.5%
2004 6.1% 4.9% 2.7% 2.2%
Source: The Colography Group

1 SMC3
2 Year-over-year growth; The Colography Group
3 inflationdata.com
4 Realized yield minus inflation

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