P.A.M. Transportation Services’ operating income dropped 62% YoY to $13.8 million in Q2, the carrier announced last week in an earnings statement.
P.A.M. reported operating income above $30 million for five straight quarters between Q3 2021 and Q3 2022, but recent quarters have brought significant declines.
P.A.M. Transportation Services' operating income falters from pandemic surge
Other carriers, such as Marten Transport, are also seeing operating income much more subdued than last year — when surges in demand produced bountiful profits. Marten cited soft freight market demand, excess capacity and inflationary costs putting pressure on industry pricing, volumes and margins.
But multiple carriers also underwent difficulties in the first half of this year, casting clouds over when rebounds will occur. Marten Transport and Knight-Swift Transportation Holdings both saw operating income decrease between the first two quarters of this year amid declines across multiple segments, including truckload and intermodal.
In contrast, P.A.M.’s earnings showed an increase in operating income from Q1 to Q2. Additionally, YoY declines improved by over 10 percentage points in Q2 from a 73% dropoff in Q1.
