Good day,
Purolator, the courier and less-than-truckload subsidiary of Canada Post, had a decent first quarter – all things considered.
Revenue grew by 5.1% to C$457 million (about $331 million) year-over-year, while net profit dropped by 5.9% to C$8 million. Canada Post reported those numbers as part of its first-quarter financial report, which was released on March 25.
Purolator also performed much better than Canada Post as a whole. The government-owned postal carrier, which owns more than 90% of Purolator, swung to a C$50 million loss as revenues grew by 2.1%
Canada Post’s rough quarter stems from its struggle to handle the growing shift from letters to parcels. While Purolator’s dip in profits reflects the challenges of improving profit from growing e-commerce volumes, it’s important to consider the numbers in context.
COVID-19 drove up costs in the latter part of the quarter. Purolator also is spending more money as part of a C$1 billion investment to improve the efficiency of its network.
Did you know?
83,426 truck drivers crossed the U.S.-Canada border during the week ending May 24, according to the Canada Border Services Agency. That is a 2.8% increase from the previous week, but still down 25.5% from a year ago.
Quotable:
“We would like to see more companies saying that they’re receiving a lot of benefits and they understand the importance of USMCA.”
– Eugene Laney, head of international government affairs for DHL Express USA, on the results of a recent survey on how small and medium-sized businesses see the United States-Mexico-Canada Agreement (USMCA).
In other news:
ATA reports increase in driver pay
The average pay for truck drivers serving national, irregular routes hit $53,000, an increase of $7,000, in the American Trucking Associations’ latest Driver Compensation Study. (Fleet Owner)
Sloppy paperwork leads to trucker’s cannabis arrest
A truck driver was arrested in British Columbia after inconsistencies in his paperwork led a police officer to discover 1,250 pounds of unlicensed cannabis. (The Growth Op)
Ship assessors turning to virtual inspections for oil tankers
Assessors are increasingly inspecting oil tankers virtually because of the COVID-19 pandemic. (Insurance Journal)
Largest driver-free ferry freight terminal opens in the UK
Tilbury2 officials launched its unaccompanied ferry freight terminal in London, which operates without truck drivers. (Bdaily)
Final thoughts:
As a standalone company, Purolator is one of Canada’s largest transportation and logistics providers. It has a fleet of over 4,000 vehicles, including about 500 tractors. But it faces a tough battle in Canada’s e-commerce space, contending with Amazon, TFI International and Mullen Group.
Hammer down, everyone!