Although record fuel costs have hurt transportation stocks for the most part, Marten Transport (Nasdaq:MRTN) and Dynamex (Nasdaq:DDMX) are faring better than most due to their focus on niche markets and should be among the first to recover when the economy strengthens.

Marten Transport is a leading transporter of food and other goods that require a temperature-controlled environment. Approximately 80% of the $560 million in revenues Marten generated in 2007 were from deliveries of temperature-controlled products. The company’s main transport routes are between the midwest and west coast, southwest, southeast and the east coast. Average haul length is around 900 miles.

Marten’s fleet includes over 2,400 company and independent contractor tractors. Its track record of 99% on-time delivery is a major selling point to customers shipping perishable goods. 

During the first six months of 2008, Martin boosted truckload revenues 5.5% year over year to $255.2 million from $241.9 million and logistic revenues, which consisted of brokerage and intermodal operations, logistics revenue increased 69.7% year over year to $48.2 million from $28.4 million. However, net income fell to $6.1 million, or $0.28 per share, for the six-month 2008 period from $8.9 million, or $0.41 per share, one year earlier due to soaring fuel costs, Marten is addressing fuel cost challenges by expanding its asset-light logistics business, reducing fuel consumption per load through shorter hauls and regional routes, and installing auxiliary power units on rigs that provide heat, air conditioning and electricity to its drivers without running . . .

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