Werner Enterprises executives expressed confidence that the supply-driven recovery in truckload markets will persist despite a seasonal July slowdown. Chairman and CEO Derek Leathers told investors at Deutsche Bank's Chicago Industrials Summit that regulatory crackdowns on bad actors continue to constrict capacity, with 850 to 900 CDL schools forced to close and roughly 10,000 training programs removed from the FMCSA registry. Werner's one-way TL fleet saw revenue per truck per week jump 28% year over year in the second quarter following a restructuring that shrank the fleet by 34% to 1,700 units, and the company expects one-way rate per mile to increase 10% to 13% year over year in the third quarter. The dedicated fleet, which accounts for 80% of Werner's total TL network, is capturing low- to mid-single-digit contractual rate renewals, and management reiterated a path to low-double-digit margins during the middle of the freight cycle, which could occur next year.
Werner Enterprises IncRegulatory crackdowns constrict capacity, supporting pricing and margins.
Deutsche Bank Aktiengesellschaft