P.A.M. Transportation Services Profile
P.A.M. Transportation Services, Inc. operates as a truckload dry van carrier transporting general commodities throughout the continental United States, as well as in certain Canadian provinces.
The company also provides transportation services in Mexico under agreements with Mexican carriers. Its freight consists primarily of automotive parts, expedited goods, consumer goods, such as general retail store merchandise, and manufactured goods, such as heating and air conditioning units.
The company conducts operations and holds assets principally through the following wholly owned subsidiaries: P.A.M. Transport, Inc., Met Express, Inc., Costar Real Estate Holding, Inc., Costar Equipment, Inc., Unmoored Realty, LLC, T.T.X., LLC, P.A.M. Cartage Carriers, LLC, Overdrive Leasing, LLC, Choctaw Express, LLC, Choctaw Brokerage, Inc., Transcend Logistics, Inc., Decker Transport Co., LLC, East Coast Transport and Logistics, LLC, S & L Logistics, Inc., P.A.M. International, Inc, and P.A.M. Mexico Holdings LLC. The company’s operating authorities are held by P.A.M. Transport, Inc., P.A.M. Cartage Carriers, LLC, Choctaw Express, LLC, Choctaw Brokerage, Inc., T.T.X., LLC, Decker Transport Co., LLC, and East Coast Transport and Logistics, LLC. Effective on January 1, 2010, the operations of most of the company’s operating subsidiaries were consolidated under the P.A.M. Transport, Inc. name in an effort to more clearly reflect the company’s scope and available service offerings.
The company's operations are all in the motor carrier segment.
The company’s operations can generally be classified into truckload services or brokerage and logistics services. This designation is based primarily on the ownership of the asset that performed the freight transportation service. Truckload services are performed by the company divisions that generally utilize company-owned trucks, long-term contractors, or single-trip contractors to transport loads of freight for customers, while brokerage and logistics services coordinate or facilitate the transport of loads of freight for customers and generally involve the utilization of single-trip contractors.
Approximately 66% of the company's revenues are derived from domestic shipments while approximately 34% of the company’s revenues are derived from freight originating from or destined to locations in Mexico or Canada.
Business and Growth Strategy
The company’s strategy focuses on the following elements: providing a full suite of complimentary truckload transportation solutions; developing customer relationships within high density traffic lanes; and providing superior and flexible customer service.
Marketing and Significant Customers
The company’s marketing efforts are diversified and designed to gain access to dedicated, expedited, regional, automotive, and long-haul opportunities (including those in Mexico and Canada) and to expand brokerage and logistics offerings.
General Motors Company accounted for approximately 13% of the company’s revenues in 2022. Walmart Inc. accounted for approximately 9% of the company’s revenues in 2022. Fiat Chrysler Automobiles accounted for approximately 6% of the company’s revenues in 2022.
The company also provides transportation services to other manufacturers who are suppliers for automobile manufacturers. Approximately 31% of the company’s revenues were derived from transportation services provided to the automobile industry during 2022.
Revenue Equipment
As of December 31, 2022, the company operated a fleet of 2,451 trucks, which included 407 independent contractor trucks. As of December 31, 2022, the company’s trailer fleet consisted of 7,784 trailers. The company-owned trucks and leased trucks are late model, well-maintained, premium trucks. The average age of the company’s trucks and trailers as of December 31, 2022 was 2.1 years and 6.6 years, respectively.
The company contracts with independent contractors to provide greater flexibility in responding to fluctuations in consumer demand. They are also responsible for maintaining compliance with the Federal Motor Carrier Safety Administration regulations.
Seasonality
Generally, the company’s revenues do not exhibit a significant seasonal pattern; however, revenue is affected by adverse weather conditions, holidays and the number of business days that occur during a given period because revenue is directly related to the available work days of shippers. Operating expenses are typically higher in the winter months primarily due to decreased fuel efficiency and increased maintenance costs associated with inclement weather. In addition, automobile plants for which the company transports a large amount of freight typically undergo scheduled shutdowns in July and December, and the volume of automotive freight the company ships is reduced during such scheduled plant shutdowns.
Regulation
The primary regulatory agencies affecting the company’s operations include the Federal Motor Carrier Safety Administration (‘FMCSA’), the Pipeline and Hazardous Materials Safety Agency, and the Surface Transportation Board, which are all agencies within the U.S. Department of Transportation (‘DOT’).
The company is in compliance in all material respects with applicable regulatory requirements relating to the company’s business and operate with a ‘satisfactory’ rating (the highest of three rating categories) from the DOT. In addition, the company is subject to compliance with cargo-security and transportation regulations issued by the Transportation Security Administration, a component department within the U.S. Department of Homeland Security. To the extent that the company conducts operations outside the United States, the company is subject to the Foreign Corrupt Practices Act, which generally prohibits the U.S. companies and their intermediaries from offering bribes to foreign officials for the purpose of obtaining or retaining favorable treatment.
History
P.A.M. Transportation Services, Inc. was founded in 1980. The company was incorporated under the laws of the state of Delaware in 1986.
