PAMT, the newly renamed parent company of PAM Transport, reported an operating loss of $37.7 million for Q4, largely attributed to truck depreciation, the company reported last week.
An accounting update increased depreciation values by about $24.7 million, the company said, and a separate impairment charge provided a window into oversupply in the used equipment market.
“An impairment charge of $6.4 million was recorded to align the carrying value of revenue equipment to market values of used equipment,” the company said.
Excluding those changes, its adjusted operating loss was $6.6 million, still a significant decline from its Q4 2023 adjusted operating loss of $811,000.
The company has exposure to Mexico, and its freight primarily consists of automotive parts as well as expedited, consumer and manufactured goods, according to an annual report. Other carriers have remarked on how potential tariffs could affect their businesses.
As part of that hit to its earnings, its Q4 operating revenue of $166.5 million was about 8% less than a year ago, reflecting a year of lower volumes.
The loss came as PAM Transport shifted capacity from company drivers to owner-operators. The company reduced its company driver truck count to 1,754 but upped its average owner-operator count to 510.
Correction: A previous version of this article included a header image of a Pam International Inc. trailer. The image was removed after Pam International Inc. notified Trucking Dive that the publication had mistaken the carrier for P.A.M. International Inc., an affiliate of PAM Transport.
