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Diving certificate:
- The number of trucks operated by PAM Transportation Services itself increased sequentially and year-over-year last quarter, surpassing 400 trucks for the first time in two years, the company reported.
- Meanwhile, the carrier’s truck count also increased sequentially from the first quarter, but declined from the second quarter of 2023 compared to the same period last year, the press release said.
- The change in fleet composition came after PAM Transport reported a net loss of $705,000 last quarter, making it three consecutive quarters of losses after posting losses of $700,000 in the first quarter and $2.2 million in the fourth quarter.
PAM Transport Owner-Operator, Company Truck Counting
While both increased sequentially in the second quarter, only the number of owner-operators increased year-on-year.
Diving insight:
Other carriers have also been adjusting their fleet sizes to reduce costs as they hopefully near the end of a two-year downturn in the freight market.
Werner Enterprises’ truck count fell 7% year-over-year to fewer than 5,000 trucks last quarter, while the carrier’s operating profit fell 58% year-over-year in the quarter.
At Landstar System, whose fleet is primarily made up of independent drivers, the decline in workforce was even greater. Landstar’s independent driver count fell 14% in the second quarter compared to a year ago.
Joe Vitiritto, CEO and president of PAM Transport, described the second quarter results in the earnings release as “very similar to the first quarter,” but pointed to a glimmer of hope that “the current unfavorable freight market” may finally be coming to an end.
“The quarter started slower than expected but showed early signs of seasonal demand patterns more consistent with pre-COVID periods, and we saw some capacity tightening toward the end of the quarter,” Vitiritto said.
“We continue to see downward pressure on interest rates, but we also see some opportunities that tell us we may be approaching a cycle change,” he added.
