Smithway hurt by lack of freight and drivers

Aug. 7, 2002
Truckload carrier Smithway Motor Xpress posted losses of $1.2 million on revenue of $44.6 million in the second quarter, compared to losses of just $384,000 on revenues of $49.9 million in the same period last year. Fort Dodge, IA-based Smithway said a shortage of drivers combined with weak freight demand in the Midwest -- particularly in steel and construction materials -- were the main reasons for
Truckload carrier Smithway Motor Xpress posted losses of $1.2 million on revenue of $44.6 million in the second quarter, compared to losses of just $384,000 on revenues of $49.9 million in the same period last year.

Fort Dodge, IA-based Smithway said a shortage of drivers combined with weak freight demand in the Midwest -- particularly in steel and construction materials -- were the main reasons for those losses. Currently, 50 of its tractors are sitting idle without drivers, said Smithway.

For the first six months of 2002, Smithway lost $3.2 million on revenues of $85.6 million. That compares to losses of $1.7 million on revenues of $95.3 million in the first half of 2001.

Chairman, president & CEO William G. Smith said revenue for each tractor in use per week improved by 1.3% this quarter compared to the same period of 2001. Smithway had higher revenue per loaded mile in its van operation, but he said that was cancelled out by lower non-revenue miles in both the carrier’s flatbed and van operations.

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...