TL capacity

Knight-Swift focuses on cost reductions, asset utilization 

Knight-Swift Transportation said it is focused on reducing costs throughout the organization. That includes culling trailer counts, as well as tractor counts in some areas, to improve asset utilization. It is prioritizing investment dollars toward the expansion of its less-than-truckload business in the near-term.

Like many in the truckload arena, the company was busy adding trailing equipment in recent years to provide customers flexibility through trailer pools and to build out a power-only...

https://www.freightwaves.com/news/knight-swift-focuses-on-cost-reductions-asset-utilization

Trucking fundamentals unlikely changed in first half of 2024, Hutto says

This fireside chat recap is from FreightWaves’ Domestic Supply Chain Summit on Wednesday.

FIRESIDE CHAT TOPIC: Freight market conditions and what to keep an eye on in 2024.

DETAILS: Brent Hutto, chief relationship officer at Truckstop.com, explains the recent spot market cycle and why current conditions will likely linger through the first half of 2024.

KEY QUOTES FROM HUTTO:

On why this spot market cycle has been different:“What’s not been normal is fuel. What’s not been normal is inflation and...

https://www.freightwaves.com/news/trucking-fundamentals-unlikely-changed-in-first-half-of-2024-hutto-says

Werner chief says worst has likely passed

Following a very tough quarter, management from Werner Enterprises said Tuesday the worst of the freight downcycle has likely passed.

Werner’s (NASDAQ: WERN) outlook calls for a muted peak season with continued capacity attrition. Derek Leathers, the truckload carrier’s chairman and CEO, told investors at Deutsche Bank’s (NYSE: DB) transportation conference that he was surprised by the staying power spot-market-dependent carriers have had following the recent boom cycle.

“We underestimated the...

https://www.freightwaves.com/news/werner-chief-says-worst-has-passed

Carriers weigh in on peak season and contract rates

A Werner tractor-trailer on the highway

Heads of trucking companies remain constructive on peak season and contractual rates all the while acknowledging the macroeconomic environment has clearly slowed over the last several weeks. After nearly two years of operating in peak-like conditions every day, management teams appear to be embracing the opportunity to operate in a more normalized freight environment.

The spot truckload market has loosened significantly since the spring. Many drivers made the leap to operating under their own...

https://www.freightwaves.com/news/carriers-weigh-in-on-peak-season-and-contract-rates

Schneider sees moderating demand, expects ‘constructive’ back half

Schneider trailers at warehouse

Management from Schneider National said Thursday that in spite of a recent cooling in truckload demand, it remains positive on the back half of the year.

“As strong as the second quarter was, we did observe signs of moderation in freight market conditions as the quarter progressed, consistent with industry narrative,” Mark Rourke, CEO and president, stated in a news release. “However, we continue to expect a constructive freight environment for the remainder of 2022, including a return of...

https://www.freightwaves.com/news/schneider-sees-moderating-demand-expects-constructive-back-half

Large truckload carriers say recent downturn not hurting them

A white tractor and white trailer on highway

While a host of unfavorable trucking data points appeared by the end of the first quarter, with trend lines declining further to start the second quarter, many executives at the nation’s top fleets are presenting a much rosier outlook than the data suggests. During the first-quarter earnings season, management teams from publicly traded carriers acknowledged softness in the spot truckload market but said the loosening in capacity won’t likely hurt them.

The growing consensus in the industry is...

https://www.freightwaves.com/news/large-truckload-carriers-say-recent-downturn-not-hurting-them

Trucking: Cowen cuts estimates over ‘growing concerns for carriers’

Cowen lowers estimates ahead of Q1 earnings season

Incremental capacity, cooling demand and plummeting spot rates were the catalysts for another analyst to reel in expectations for trucking companies. On Thursday, Cowen’s Jason Seidl lowered earnings estimates for the truckload and less-than-truckload carriers he follows heading into the first-quarter earnings season, which starts Monday.

He advised clients to favor large-cap TL carriers versus the smaller carriers, downgrading Covenant Logistics Group (NASDAQ: CVLG) to “market perform” from...

https://www.freightwaves.com/news/trucking-cowen-cuts-estimates-over-growing-concerns-for-carriers

U.S. Xpress sees freight moving at ‘fever pitch’ through at least H1/22

U.S. Xpress says inflation, consumer spending will determine trajectory of freight cycle

A first-half 2022 economic outlook issued by truckload carrier U.S. Xpress Wednesday calls for strength in freight demand to last through at least the first half of the year. The company highlighted some caveats, most notably the impact of inflation on consumer spending.

Inventory replenishment is likely to carry freight demand through the beginning of the year, the report said. After that, it’s really up to how much of a bite inflation takes out of the consumer’s wallet.

“If the economy can...

https://www.freightwaves.com/news/us-xpress-sees-freight-moving-at-fever-pitch-through-at-least-h122

Driver pay hikes continue to roll in

Pay hikes not likely to slow for some time

High demand and a lack of qualified drivers has pushed truckload carriers to raise pay substantially over the past year and a half. Wage increases have helped fleets maintain size through the pandemic, but few have been able to grow organically. Following a round of large pay increases in 2021, it appears the industry will continue to push pay rates higher to address a labor shortfall.

Two more fleets announced pay hikes this week.

Kaukauna, Wisconsin-based Midwest Carriers announced a 9% pay...

https://www.freightwaves.com/news/driver-pay-hikes-continue-to-roll-in

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