DALLAS, June 19, 2008 (PRIME NEWSWIRE) -- Frozen Food Express Industries, Inc. (Nasdaq:FFEX) and FFE Transportation Services, offering nation-wide transportation in the temperature controlled truckload and LTL, dry truckload, and brokerage/logistics markets, announced today that it will implement a charge to its shippers for the rapidly rising cost of refrigeration necessary in the transportation of temperature controlled products. It expects the charge will be fully implemented by the middle of this year's third quarter.
"Our customers count on us to keep their products pristine in a temperature controlled environment. Our ability to do that depends on the use of diesel-powered refrigeration units. The cost to operate those units is tied directly to the ever increasing price of fuel. So far this year, the per-gallon price of diesel is up more than 40%. Until now, we have held the line and not passed on this increasing cost, as we are sensitive to our customers' needs. That has been quite a struggle, and we have reached the point where it is not financially feasible to continue to bear the brunt of this brutal fuel environment without some relief," stated John Hickerson, Senior VP and Chief Marketing Officer. "We have reached out to our customers for input on this tough situation and our shipping partners have been mostly understanding about the necessity for FFEX to offset the climbing cost for refrigerating their products," said Hickerson.
"Previously, we have reported a variety of initiatives to hold the expense of fuel costs in check," stated Russell Stubbs, Senior VP and Chief Operating Officer. "We have turned our trucks' speeds down; we are spending more on fuel efficient tractors and better insulated trailers. We have taken many steps to reduce tractor idling time. All of those have been effective, and we will continue to do everything possible to hold shipping costs at affordable levels while supplying the quality service for which FFEX is known. This is all about customer service and we must offset some of the increasing cost related to providing the service our customers expect and deserve. Our goals have not changed, and we will still be standing after any shake out that many expect in the economy. Our efforts to cut costs and enhance revenue remain intact and on-target.
"This will be an enterprise wide program adopted by the fleets at all FFEX brands."
About FFEX
Frozen Food Express Industries, Inc. is a publicly owned motor carrier specializing in core offerings of temperature-controlled transport of products and perishable goods including food products, health care supplies and confectionery items. We offer nationwide service in both over-the-road and intermodal modes of temperature-controlled truckload and LTL freight, as well as dry truckload freight. We also offer services in brokerage, logistics, and dedicated hauling. Additional information can be found at our Web site, http://www.ffex.net. To join our email alert list, please click on the following link: http://www.ffex.net/irpass.asp?BzID=1065&to=ea&s=0
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Forward-Looking Statements
This report contains information and forward-looking statements that reflect our management's current beliefs and expectations and assumptions which are based upon information currently available. Forward-looking statements include statements relating to plans, strategies, objectives, expectations, intentions, and adequacy of resources, and may be identified by words such as "will", "could", "should", "believe", "expect", "intend", "plan", "schedule", "estimate", "project", and similar expressions. Those statements are based on current expectations and are subject to uncertainty and change.
Although our management believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Should one or more of the risks or uncertainties underlying such expectations not materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected.
Among the key factors that are not within our management's control and that may cause actual results to differ materially from those projected in such forward-looking statements are demand for the company's services and products, and its ability to meet that demand, which may be affected by, among other things, competition, weather conditions and the general economy, the availability and cost of labor and owner-operators, the ability to negotiate favorably with lenders and lessors, the effects of terrorism and war, the availability and cost of equipment, fuel and supplies, the market for previously-owned equipment, the impact of changes in the tax and regulatory environment in which the company operates, operational risks and insurance, risks associated with the technologies and systems used and the other risks and uncertainties described in our filings with the Securities and Exchange Commission.