U.S. Xpress boss talks to Canadian truckers about weathering “perfect storm”

TORONTO, (April 23, 2004) — The chairman and co-founder of one of the continent’s largest for-hire carriers told a group of Canadian trucking CEO’s that the North American transportation community is facing the most demanding time in its history.

Speaking at the opening ceremonies at the Truck World show in Toronto yesterday, U.S. Xpress Enterprises Chairman Patrick Quinn said “as we come out of the perfect storm, I would say the forecast is partly sunny.”

Quinn — whose Chattanooga, Tenn.-based truckload fleet is the fifth largest in North America, consisting of 5,500 tractors and over 15,000 trailers — said the so-called “perfect storm” tested the limits of the industry, but opportunities exist for those who have weathered all the mounting, overlapping costs carriers have faced with over the last few years.

Such high costs — especially fuel, insurance, new emission-mandated engines, and the impact of hours of service rules — has pushed 12,000 U.S. trucking operations out of the market and created a “capacity crunch” to the tune of 15 per cent, Quinn said. But even though there is freight to be had, the industry lacks the manpower to haul it, he continued, adding that U.S. Department of Labor statistics show trucking has the highest turnover rate of any industry — recently spiking to 95 per cent in the U.S. And there’s mot much reason to believe Canada is any different.

“Most fleets today can easily go out and buy another 100 trucks,” he said. “But what for? To park them beside the 100 you already have sitting there?”

Quinn said that it seems today’s carriers and shippers have learned the lessons of the “perfect storm” and are finding ways to truck through it. He warned, however, the costs are here to stay, if not increase, in the near future. Insurance remains high, another round of tougher emission regs are set to take effect in 2007, and diesel prices are once again taking their toll on truckers.”

“Trucking has its own four-letter word … fuel,” Quinn said to the approval of the audience.