For-hire revenues jump nearly 15% y-y

OTTAWA — About 3,406 for-hire Canadian trucking companies posted annual revenues of $1 million or more in the fourth quarter of 2005, up from 3,225 carriers in the fourth quarter of 2004.

Operating revenues totaled $7.3 billion, up 14.6 percent from the fourth quarter of 2004. Operating expenses reached $6.7 billion, up 15.2 percent from the same period in 2004, according to Stats Canada.

Both average operating revenues and expenses rose by approximately 9 percent in the fourth quarter the same period of 2004; revenues were $2.1 million in the last quarter of 2005, and expenses were $2.0 million. The growth of operating revenues and expenses by carriers was therefore mitigated by a significant 5.6 percent increase in the estimated number of carriers.

Even though for-hire carriers’ total fuel expenses rose 20.3 percent over the fourth quarter of 2004, the operating ratio remained unchanged at 0.92.

For-hire trucking transportation revenues from domestic movements increased by 16.3 percent to $4.7 billion in the fourth quarter from $4.0 billion registered one year earlier. Meanwhile, an 18.3 percent increase in revenues from outbound movements contributed significantly to the 11.1 percent increase in revenues from international movements.