Werner Enterprises CEO Derek Leathers said the structural capacity attrition tightening the truckload market is only in the third inning, as the carrier reported second-quarter results that showed a sharp jump in One-Way revenue per truck per week to $6,114 from $4,787 a year ago. The adjusted operating margin for all trucking operations rose to 4.6% from 2.5%, while the One-Way segment's operating margin improved more than 700 basis points year-on-year. Leathers attributed the supply-driven upcycle to intensifying regulatory pressure, including enforcement around non-domiciled CDLs, English language proficiency, and cabotage, as well as the FMCSA's withdrawal of about one-third of ELD approvals, which he said is dismantling shadow capacity. He also cited the Montgomery vs. Caribe fallout and a recent Dallas jury decision against C.H. Robinson as boosting demand for carriers with strong reputations like Werner. The company raised its full-year forecast for Dedicated revenue per truck per week to an increase of 3% to 5% and for One-Way revenue per truck per mile to growth of 10% to 13%, reflecting significant productivity improvements and a tightening driver market.
Werner Enterprises IncCEO cites regulatory tightening and driver attrition as supply-driven upcycle, boosting pricing and margins.
TFI International Inc