EGL Reports Freight Falloff

April 11, 2001
Houston-based logistics provider Eagle Global Logistics (EGL) said its domestic shipment activity in March was slightly below last year’s levels and did not reflect the acceleration normally seen at the end of the quarter. EGL said that March has traditionally reflected a sharp increase in activity, as compared to January or February, by as much as 20% in the last two years. This year, however, March
Houston-based logistics provider Eagle Global Logistics (EGL) said its domestic shipment activity in March was slightly below last year’s levels and did not reflect the acceleration normally seen at the end of the quarter.

EGL said that March has traditionally reflected a sharp increase in activity, as compared to January or February, by as much as 20% in the last two years. This year, however, March reflected a 2% decline in North American priority shipments compared to January levels, while deferred shipments grew 1%.

EGL also said that some customers began converting shipments from air to ground during the quarter, in order to cut freight transport costs. Priority shipments in North America – typically moved by air – declined by 7% in the first quarter from a year ago, said EGL, while deferred shipments – mostly moved on the ground – increased 7%.

“We are seeing the impact of the weak economy on our business,” said Elijio Serrano, EGL’s CFO. “It is unlikely that we will be able to achieve our previous 2001 earnings, revenue and other forecasts. The uncertainty concerning the duration of the economic slowdown makes it extremely difficult to forecast future financial results.”

“We did not see sufficient new bid activity or market share gains in the first quarter to offset the effects of the slowing economy,” added James R. Crane, EGL’s chairman and CEO. “We remain confident that we will continue to add business from new and existing customers.”

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

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 ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...