In The News

Syleconomics show strongest January on record

Sylectus has released its February edition of “Syleconomics,” tracking the performance of the trucking industry based on data from its customers.

Once again, the numbers showed that January was a good month for trucking. In fact, the report reflected “the best January results ever.”

“There are two very positive figures coming out of the January numbers,” Sylectus President Stuart Sutton wrote in the report. “First, January 2012 shows slightly stronger than January 2011. Second, the rate per mile for January 2012 is the strongest rate we have seen since we started recording our data eight years ago. If this rate structure holds through February, it will be a very good first quarter.”

Compared with January 2011, January 2012 showed increases in nearly every statistical category, highlighted by a 6 percent increase in total miles, a 6 percent increase in revenue per mile and a 35 percent increase in fuel revenue. It all added up to a 12 percent increase in total revenue.

The report also included data that indicate that linehaul revenue per mile, which fell as low as $1.25 in 2009, climbed to $1.63 in January 2012.

Total revenue per mile, which includes linehaul revenue, accessorial revenue and fuel revenue, stood at $1.72 in January 2009, $1.70 in 2010 and $1.91 in 2011. In January 2012, total revenue per mile reached $2.05.

Both the linehaul revenue per mile and total revenue per mile reached their highest January rate since Sylectus began recording in 2005.

Other data indicated that the supply of trucks continues to lag behind an increasing demand. Those companies that survived the recession continue to benefit from an increase in business volume.

As the trucking industry continues its strong performance, Sutton wrote that carriers can benefit even more from being involved in a Transportation Network such as Sylectus.

“Whenever we promote our Virtual Fleet and Pro versions of our software, people ask ‘what value will I get?” Sutton wrote. “We explain the traditional value statements (improved productivity, better customer service, reduced costs, greater efficiencies, etc.), but we also tell them that their business will grow.

“Their immediate response is ‘How can my software provider help my business grow?’ and ‘How much will it grow?’

Sutton went on to explain that membership in the Sylectus Alliance comes with more than 560 built-in customers. Sylectus also organizes and hosts multiple networking events each year that allow its members to foster and improve their business relationships.

“Of course, we always promote the concept of ‘always saying yes,” to your customers because you have access to about 10,000 trucks across North America,” Sutton wrote. “The more you say ‘yes’ to your customers, the more business your customers give you.”

The report also includes data that indicates that Sylectus companies grew about 20 percent annually over the past six years, compared with annual growth of about 2 percent for the “Transport Topics top 100 for-hire carriers,” and annual growth of about 5.6 percent for a major expediter.

“Remember, that number is an average,” Sutton wrote. “The amount of growth you will actually experience depends on you, the subscriber. The more you embrace the network, grow and enhance your relationships with other good companies within the network, train your people how to use the network (and) continue to do quality, ethical work within the network, then your business will grow.”