SHIPPING NEWS

CN Revenue Breaks Records

Canadian National Railway revenue increased six percent to $1.718 billion in the second quarter, for a new record even though the stronger Canadian dollar reduced revenue gains by $88 million. The improvement came about through freight rate increases for all commodity groups and higher fuel surcharges. Volume growth, especially in grain and intermodal, supported the price hikes. (Thomas L. Gallagher 7/20/06)

C.H. Robinson Net Income Improves in Second Quarter

Transportation and logistics firm C.H. Robinson Worldwide late Tuesday reported second-quarter net income of $66.6 million or 38 cents a share, up from $49.3 million or 28 cents a year earlier. Total transportation gross profit for the quarter increased 27.6% to $232.9 million, the company said in a statement. (Thomas L. Gallagher 7/20/06)

Saia Operating Income Soars 51 Percent

The former SCS Transportation, now known as Saia, reported a 51 percent increase in operating income for the second quarter, on revenue of $225 million, up 21 percent compared to the prior-year quarter. Saia said LTL tonnage increased by 12 percent over this time last year, and yield grew by 3 percent, excluding fuel surcharges. "Revenues benefited from both tonnage growth well above the underlying economy and a favorable pricing environment," said Saia President Rick O'Dell. (Bill Carey 7/21/06)

Swift's Second-Quarter Income Rises on Higher Fuel Surcharges, Sets 'Poison Pill' Stockholder-Protection Plan

Truckload carrier Swift Transportation Co. Wednesday reported its second-quarter net income rose to $45.5 million or 60 cents a share, up from $29.8 million or 40 cents a year earlier. The company's profit was boosted by higher fuel surcharges and rates, the Associated Press reported. (7/06)

Con-way Reports Higher Second-Quarter Income, Revenue

Transportation firm Con-way Inc. reported second-quarter net income of $74.1 million or $1.40 a share, up from $66.8 million or $1.20 a year earlier. Revenue rose to $1.1 billion from $1.02 billion last year, the company said in a statement late Tuesday. Operating income at Con-way Freight, which operates a number of less-than-truckload carriers, and Con-way Transportation, its truckload, expedited, forwarding and brokering division, rose 6.5% to a record $102.3 million. (7/06)

Old Dominion Profit Soars 55 Percent

Old Dominion Freight Line said double-digit tonnage growth and an improved pricing environment drove solid second-quarter results. Old Dominion, Thomasville, N.C., reported net income of $21.6 million, up 55 percent from the second quarter last year, on revenue of $330 million, up 25 percent. Most of the revenue was generated by existing service centers over one year old, although Old Dominion said the opening of five new service centers helped. The LTL carrier said its tonnage growth increased by 17.6 percent, the result of an 11 percent increase in shipments and a 6 percent increase in weight per shipment. (Bill Carey 7/27/06)

CSX's 2Q Income Jumps; Railroad Sets Stock 2-for-1 Split

Eastern freight rail line CSX Corp. late Tuesday reported its second-quarter profit more than doubled and it announced a 2-for-1 stock split. The railroad's net income jumped to $390 million or $1.66 a share, from $165 million or 73 cents last year. Heartland Express' Second-Quarter Profit Increases Truckload carrier Heartland Express' second-quarter profit rose to $24.8 million or 25 cents a share, up from $17.6 million or 18 cents a year ago. Heartland's operating revenue rose 11% to $143.1 million, the company said Tuesday. Heartland Express is ranked No. 48 on the Transport Topics 100 listing of the U.S. and Canadian for-hire trucking companies. (7/06)

J.B. Hunt Reports Record Revenue, Earnings for 2Q

Truckload carrier J.B. Hunt Transport Services reported Tuesday that it earned a record $55.3 million or 36 cents a share, up from $54.6 million or 33 cents a year ago.

Landstar's 2Q Income, Revenue Reach Records

Truckload carrier Landstar System Thursday reported record second-quarter net income of $29.5 million or 50 cents a share, up from $22.4 million or 37 cents a year earlier. Revenue rose 19% to a record $643 million, the company said. (7/06)

BNSF to Increase Quarterly Dividend

Western freight rail line Burlington Northern Sante Fe Corp. said Thursday it will increase its quarterly dividend by 5 cents per share to 25 cents. (7/06)

Marten's 2Q Earnings, Revenue Increase

Refrigerated truckload carrier Marten Transport's second-quarter income rose to $7.5 million or 34 cents a share, from $6.8 million or 31 cents a year earlier, the company said late Wednesday. Operating revenue rose 16.9% to $131.9 million, the company said. (7/06)

Vitran Reports Record Second-Quarter Income, Revenue

Toronto-based transportation and logistics firm Vitran Corp.'s second-quarter profit and revenue rose to records, as it posted net income of $5.8 million or 45 cents a share, up from $4.8 million or 38 cents last year. Revenue rose 18% to $123.6 million, the company said Thursday. Vitran has truckload and less-than-truckload operations in the United States and Canada. (7/06)

USA Truck's 2Q Income, Revenue Reach Records

Truckload carrier USA Truck said Thursday its second-quarter net income rose to a record $4.4 million, from $4.3 million a year earlier. Earnings per share fell to 38 cents from 45 cents in the previous second quarter. Revenue including fuel surcharges rose 6.5% to $99.6 million. (7/06)

Union Pacific Reports 64% Gain in 2Q Income

Western freight railroad Union Pacific Corp. said Thursday its second-quarter profit rose 64% to $390 million or $1.44 per share, from $233 million or 88 cents a year earlier. The earnings exceeded the railroad's forecast of a range of $1.20 to $1.30 per share. UP kept in place its forecast that it would earn $5 to $5.20 per share for the full year. Revenue rose 17% to a record $3.92 billion. Union Pacific is the largest U.S. freight railroad by revenue. (7/06)

Werner Reports Higher Second-Quarter Earnings, Revenue

Truckload carrier Werner Enterprises said late Wednesday its second-quarter net income improved 11% to $28 million or 35 cents a share, from $25.3 million or 31 cents a year earlier. Revenue rose 9% to $528.9 million, Werner said in a statement. (7/06)

Knight Transportation Reports Record 2Q Income, Revenue

Truckload carrier Knight Transportation reported record second-quarter net income and revenue late Wednesday, posting a profit of $18.1 million or 21 cents a share, up from $15 million or 17 cents a year earlier. Revenue jumped 23.8% to $165.8 million, the company said in a statement. "From a freight perspective, we are optimistic that demand for our services will remain solid through the remainder of the year for all three of our businesses," said Kevin Knight, chairman and chief executive officer. (7/06)

By outsourcing logistics, shippers can leverage economies of scale, increase productivity, and reduce costs.

During the past decade, outsourcing to 3PLs has been a means of leveraging economies of scale and tapping into a logistics infrastructure that delivers increased robustness to a company's supply chain. Logistics outsourcing has improved productivity and significantly reduced costs. Read article

Shippers are using performance metrics to drive business-critical decisions with powerful data.

As the producer of hats worn by such notables as country singer Toby Keith, Dorfman Pacific of Stockton, Calif., can't afford to mess around when it comes to performance. That's why for the last 18 months, this purveyor of labels like Scala (worn by Keith), Callanan, The Red Hat Society, and Indiana Jones has been using metrics to measure performance at its 275,000-square-foot production facility. Read article

Increasingly, supply chain management is the key to competitive advantage. Does your company have a fully integrated supply chain management strategy, or are you still thinking in terms of purchasing?

If you still think of your process as purchasing, you are living in the 1960s. Competition today is no longer company to company, but rather supply chain to supply chain. Since many of us in the same industries use many of the same suppliers, a good procurement process must evolve into fully integrated supply management. The company that does the best job of integrating its supply network - in terms of objectives, strategies, processes, and data linkage - creates optimal competitive advantage for the entire supply network and optimal value for its shareholders and customers. Read article

Discounts for LTL shipments could be just the beginning. Learn how F.A.K. rates could benefit your company.

Just about every shipper that is making shipments via less-than-truckload (LTL) general-commodity motor carriers is enjoying discounts off of the carriers' class rates. A substantial number of these discounts are in the 50- to 60-percent range, or even higher. A discount, however, isn't the only way shippers are cutting their transportation costs these days. Many have also negotiated "Freight, All Kinds" ratings, commonly referred to as "F.A.K. rates." Read article

Seeing your supply chain as a series of discrete functions often results in increased overall costs. Using a "landed cost" model instead can be the first step in containing shipping costs.

Total landed cost is the sum of all costs associated with making and delivering products to the point where they produce revenue -- usually your customer's door. So, if you employ tactics to reduce costs in all discrete functions from manufacturing through delivery, you'll have a lower total landed cost, right? Theoretically, yes. But in the real world, cost savings in one area often result in cost increases in another. Read article