Editorial: TT 100 List Shifts With Economy

The 2000-2001 Transport Topics 100 is now available!

Transport Topics’ latest ranking of the 100 largest U.S. trucking companies tells a lot about how this industry has been weathering the tough economy in the past year or so.

And because — as the opinion piece on the next page makes clear — the tough economy will be with us for a while, that listing can point to how trucking firms may handle the pressures in the months to come.

Some of the stronger freight haulers built market share by acquiring other healthy companies, and thereby removed some familiar names from the annual list.

Some companies didn’t make the list because they weren’t strong enough to survive the economic slowdown.

These things, of course, made room for companies that haven’t been on the list before.

Some companies have climbed onto this year’s ranking by targeting new segments of freight-hauling, such as providing long-haul expedited less-than-truckload service, something that blurs the distinction between LTL and truckload service and provides shippers with an economical option to airfreight.

Many trucking companies — including the most successful ones — are finding it harder to make a buck and, even though freight revenues generally rose for Transport Topics 100 members, company after company reported smaller profits.

During 2000 fuel prices headed for the stratosphere and freight demand softened, creating excess capacity that made it more difficult for fleets to cover the increased cost of doing business.

These conditions will surely lead to a further shakeout and consolidation of the industry as carriers seek ways to provide more efficient service at lower costs. But it also will create opportunities for strong, well-run companies to extend their influence. That is apparent when you look at the mergers and acquisitions and the changing fortunes of some of the major players on the 2000-2001 Transport Topics 100.

Now some things are changing for the better, but when they will make a notable difference is unclear. Fuel costs are on a downward trend, although no one can say for how long. Interest rates have been dropping steadily, but that has not yet perked up withering demand. Some carriers are boosting their freight charges even though demand remains weak.

All of the companies on the Transport Topics 100 have a story to tell. And together, they weave a complex tale of an industry in transition, with many winners and some losers. The longer it takes until the goods-hauling economy recovers, the greater the challenge to those who survive and the greater the risk that others may fall.

This story appears in the July 23 print edition of Transport Topics. Subscribe today.

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