“The slowing economy and severe weather clearly had a negative impact on our revenues during the first quarter as we experienced a general slowing of freight shipments by our major accounts,” said Robert J. Meyers, Transport’s president and CEO.
Meyers said two of Minnesota-based Transport’s largest customers reduced their respective shipping volumes by over 30% during the quarter. This unanticipated reduction in demand accounted for the majority of its revenue decline versus a year ago and was responsible for nearly all of its loss for the quarter, he said.
Despite the softer demand in the market, Meyers added the carrier would retain its focus on the long term. During the first quarter, despite posting losses, the company reduced debt by an additional $6.2 million, while also reducing driver hiring and training, communications, and general office expenses in excess of $1 million over last year’s levels.
However, those savings were partially offset by increased fuel and accident costs, which were negatively impacted by severe weather throughout much of the first quarter, he added.
