Profitability vs. Contribution: A System for Evaluating Terminal Contribution Potential

This paper describes how motor carriers sometimes find themselves in the position of operating terminals that were once profitable and prosperous then have since slipped into decline. The growth rate slows and then reverses itself. Management becomes lethargic, then defeatist. Finally, terminal profit becomes breakeven, and then becomes terminal loss. The reasons for decline in terminal profits are many. Sometimes it is neglect by corporate management. Sometimes it is poor terminal management and sales effort. Many areas in the old, industrial heartland of the country have been in decline for many years. In some areas, this decline has accelerated in the past six or seven years. Plants and jobs (and freight) have closed or relocated elsewhere. It is natural to assume that a terminal located in a declining industrial center will also slip into decline. If the terminal becomes unprofitable, management will begin considering cost reduction measures. The most drastic measure, of course, is closing the terminal down completely.

• Corporate Authors:

  Transportation Research Forum

  P.O. Box 5074
  Fargo, ND  United States  58105
• Authors:
  • Siebert, Peter K
• Publication Date: 1977

Language

• English

Media Info

• Media Type: Print
• Edition: Volume XVIII, Number 1
• Pagination: pp 317-322
• Monograph Title: Transportation in Transition. Proceedings of the Eighteenth Annual Meeting

Subject/Index Terms

• TRT Terms: Freight traffic; Freight transportation; Freight transportation support businesses; Motor carriers; Profitability; Profits; Transportation planning; Truck facilities; Truck terminals; Trucking
• Subject Areas: Freight Transportation; Highways; Motor Carriers; Planning and Forecasting; Society; Terminals and Facilities; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01104383
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 17 2008 9:24AM