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LTL Carriers

The investment research company Stifel Nicolaus reports that LTL carriers are going to raise their rates from 3 to 4 percent because of the supposed fuel surcharges. This was stated in a note to the investors where the company stated the freight in the U.S. was hanging on to growth. In August 2012 the for-hire truck tonnage soared to 3.2 percent comparing with 2011. However, American Trucking Associations report the 0.9 percent tonnage dropping in July 2012.

LTL Carriers' Earnings and Analysts’ Forecast

The reason for rates for LTL services rising is that the industry players aim to improve margins which were damaged at the recession period a few years ago. This decision was considered better than gaining the market share, according to Stifel Nicolaus. The capacity of LTL carriers remains in balance even in the climate of slowing economy. The rates rising nevertheless is going to support the carriers in present economical conditions. The analysts foresee LTL freight volume in three percent increase in a year of 2014. The same year the rates are going to rise in 5 per cent.

The top biggest Less than Truck Load carriers became bigger in 2011. The amount of LTL carriers also rose the last year and their annual revenue accounted for one billion dollars. Such regional LTL carrier as Saia increased its sales in 14.1 per cent in 2011, earning $ 1.03 billion dollars and joining the list of billion owners. While the total profit percentage at the LTL market grew to 11.6 percent which accounted for 30.6 billion dollars, ten of the biggest LTL carriers increased their year’s profit to 17 percent in 2011 and earned about 22.2 billion dollars.

LTL Carriers – the Great Revenue Owners

Those ten largest trucking companies earned 73 percent revenue of the whole LTL market which is in 68 percent more than in 2010. The revenue of the ten billion-dollar leaders accounted for 81 per cent of the 25 top LTL carriers, which were ranked by SJ Consulting for The Journal of Commerce last year. The growing up strength of the 25 top LTL carriers was underscored by the 10 billion dollar owners. The recovery of LTL industry has just started after being its players’ revenue dropped in 25 per cent in 2009.

The study of SJ Consulting underlines that the quickest growth in revenue was shown by Old Dominion Freight Line. This company increased its less than truck load sales in 25.7 per cent last year. The largest LTL carrier FedEx Freight surpassed Con-Way freight and YRC Freight earning 3.2 billion dollars in profit. UPS Freight became the forth biggest Less Than Truck Load carrier, earning $2.3 billion dollars. It left ODFL and ABF Freight System behind with $1.7 billion revenue.

One of the largest LTL carriers, owned by the private person, earned 1.6 billion dollars and placed the seventh position in top ten list, according to JS Consulting Group. The last positions were shared between Estes and the regional team of carriers YRC Worldwide which earned together about 1.5 billion dollars selling LTL services. Sais and R+L Carriers earned 1.2 billion dollars in revenue.