TL Carriers Say Fuel Costs, Driver Pay Hurt 3Q Profits

ruckload carriers said driver pay increases and inability to recoup sharply rising fuel costs tempered their profits during the third quarter, even as they pushed profits sharply higher amid strong freight volumes and tight capacity.

Of the nine publicly traded TL carriers that released earnings for the three months ended Sept. 30, most reported strong gains and said high demand for their services allowed them to increase rates.

But continuing rounds of driver pay raises and fuel costs that averaged 30% higher than the year-earlier period not only dampened third-quarter earnings, they also represented a trend many fleets said they expected would continue into the fourth quarter.