bulk movement increase
Aug 8, 2008 1:25 PM
While Schneider National, Green Bay WI, has seen a leveling of total truckload freight, tank truck movements have continued to rise since late 2006, according to a report compiled by the carrier's logistic division.
Tank truck carriers have struggled to make a profit in the last three years, but many were able to report a small revenue increase in 2007 as productivity improved. "As with any other mode, fuel swallowed up profits and exceeded labor costs," the report stated. "In addition to fuel and labor, contributors to reduced profits include (costs associated with) healthcare, equipment, maintenance, and general economic conditions."
The report also noted that ethanol transportation has proved to be a boon for many tank truck carriers. "As ethanol continues to gain ground as an alternative fuel, increases in production have presented growth opportunities for liquid bulk carriers," the report stated. "In the short term, many tank carriers will be able to take advantage of this spike in demand. In the longer term, however, it is expected that (other) bulk and barge carriers will react to the demand, obtain new equipment, and encroach on this market thus reducing tank carriers to first- and last-mile delivery."
© 2013 Penton Media Inc.
Acceptable Use Policy blog comments powered by Disqus