For-Hire Carriers See Profits Climb Sharply

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ruckload carriers that rushed to raise freight rates earlier this year because of new driver work rules generally posted sharply higher profits for the first quarter despite surging fuel prices, tightened industry capacity and a tight labor market.

Of the 11 for-hire truckload carriers that reported earnings for the period ended March 31, many posted strong gains because they charged shippers more for freight to offset lost productivity due to the new hours-of-service rules.

That includes J.B. Hunt, the largest publicly held TL carrier, which had already reported that it tripled year-earlier profits to $33 million on revenue of $617.7 million.

But Covenant Transport said lower tractor utilization and a lack of drivers had suppressed its profits, while several others failed to increase profits because of unusual charges.

For the full story, see the May 10 print edition of Transport Topics. Subscribe today.