Forward Air is a leading provider of time definite surface transportation and related logistics services to the North American deferred air freight market. Our scheduled surface transportation services provide our customers a cost effective and reliable alternative to air transportation. We transport cargo that must be delivered at a specific time, but is less time-sensitive than traditional air freight. We operate a network of 83 terminals located on or near airports in the United States and Canada, including a central sorting facility in Columbus, Ohio and ten regional hubs serving key markets. Our typical shipment consists of a pallet load of freight, such as electronics, telecommunications equipment, machine parts, trade show exhibit materials or medical equipment. We utilize a flexible source of capacity that results in a largely variable cost model, with low capital requirements.
We market our services primarily to air freight forwarders, which are businesses that arrange transportation of cargo for third parties; integrated air cargo carriers; and passenger and cargo airlines. To serve this market, we offer customers a very high level of service with a focus on on-time, damage-free deliveries. We serve our customers by locating terminals on or near airports and maintaining regularly scheduled transportation service between major cities. During 2007, approximately 21% of the freight we handled was for overnight delivery, approximately 61% for delivery within two to three days and the balance for delivery in four to five days.
We also offer customers a growing array of logistics services including: door-to-door pickup and/or delivery; exclusive use vehicles (commonly referred to as truck brokerage); dedicated fleet; warehousing; customs brokerage; pooled distribution and shipment consolidation and handling.
For the year ended December 31, 2007, we generated record operating revenue of $392.7 million, an increase of 11.3% from $352.7 million in 2006. Our operating income for the year ended December 31, 2007 was $71.1 million, a decrease of 5.8% from $75.4 million in 2006. As a percent of revenue, operating income decreased to 18.1% in 2007 from 21.4% in 2006.
