Dollars & Sense
Sylectus Report May 2012
Syleconomics Report Indicates Continued Growth
April 2011 was the first full month in 2011 where we could document the impact of Japan's Tsunami on world trade. So even though April 2012 vs. 2011 was a huge month for Sylectus subscribers, some of that growth is attributed to the effect of the natural disaster visited upon Japan, and by extension, the rest of the world. Still, April was a great month.
The only negative was an 8-10% decrease in rate per mile April v. March 2012, which can be directly attributed to the 10% decrease (two days) in business days, April v. March. So, in effect, April figures were an improvement. Driver and truck capacity shortages continue to buoy the rates although the rate per mile did show a slight decrease.
A 17% increase in total trip count and average length of haul, April 2011 to April 2012, coupled with a 3% increase in total revenue per mile are strong indicators that the economy is continuing its slow growth.
2011 was the best year ever for many Sylectus customers and 2012 is setting new records. We see a particularly strong increase for our long-term customer base (customers with us for at least 5 years). The long-term customers have such a strong, well-established, trusted network within the Sylectus Alliance, that they have been able to leverage the Alliance capacity into higher business volumes.
Line-haul revenue per mile in 2008 varied from $1.50 to $1.60 per mile. In 2009 the Line-haul revenue per mile slipped as low as $1.25 before rebounding to the mid $1.40 range. 2011 ended the year nicely, and 2012 has started as the strongest five month period ever, even surpassing the 2008 high months that were affected by the spike in the price of fuel. The total revenue per mile for the month of April 2011 was an average of $2.03; for April 2012, the average was $2.15 total revenue per mile.
Indicators predict continued slow, but sustained economic growth for the transportation industry, and as our industry goes, so goes the fate of the nation.