Trucking Closes Book on Year of Profit and Change

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nother year of strong demand and tight capacity generated higher revenue and profits for most freight carriers in 2006. But it also was a year of anticipation as fleet operators bought new tractors in record numbers, to avoid buying new models in 2007.

Fuel prices were volatile, and a slowdown in freight tonnage raised concern about future economic growth. A shift in the political makeup of Congress, along with new leadership at key regulatory agencies, set the stage for possible changes in transportation policies.

Elections in Canada and Mexico also produced new leaders who are expected to continue promoting trade with the United States.

Higher fuel prices cut into consumers’ purchasing power and dampened retail sales, while rising interest rates and soaring real estate values contributed to a slowdown in new home construction, two of the biggest sources of demand for motor carriers.

For the full story, see the Dec. 18-25 print edition of Transport Topics. Subscribe today.