Dive Brief:
- P.A.M. Transportation Services’ owner-operator truck count grew sequentially and year-over-year last quarter, surpassing 400 trucks for the first time in two years, the company reported.
- Meanwhile, the carrier’s company truck count also increased sequentially from Q1, but it was down YoY from Q2 2023, according to the release.
- The change in fleet makeup occurred as P.A.M. Transport reported a $705,000 net loss last quarter, putting it in the red for three consecutive quarters following losses of $700,000 in Q1 and $2.2 million in Q4.
PAM Transport owner-operator, company truck counts
Dive Insight:
Other carriers also have adjusted their fleet sizes to reduce costs as they approach what they hope is the end of a two-year freight market downturn.
Werner Enterprises’ dedicated truck count slipped 7% YoY to fewer than 5,000 trucks last quarter, as the carrier’s operating income nosedived by 58% YoY in the quarter.
Landstar System, which has a fleet consisting of mostly owner-operators, saw an even sharper dip in that workforce. Landstar’s owner-operator headcount dropped by 14% YoY in Q2.
Joe Vitiritto, P.A.M. Transport CEO and president, described its Q2 results as “very similar to the first quarter” in the earnings release, while noting a glimmer of hope that “the current unfavorable freight market” might be ending at last.
“The quarter started off slower than anticipated but began to show signs of seasonal demand patterns that were more consistent with pre-COVID periods and we saw capacity tightening some as we moved towards the end of the quarter,” Vitiritto said.
“We continue to see downward rate pressure, but we are also seeing some opportunities that tell us we may be getting closer to a cycle change,” he added.
