TL capacity

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

Economics 101: Driver pay will keep moving higher

Don't expect driver pay to slow when this freight cycle ends

Truckload carriers started raising driver pay nearly a year and a half ago as demand skyrocketed. Following the initial COVID outbreak, consumers changed their spending habits to ready themselves for a prolonged period of at-home living, which meant more trucks would be needed to bring more household and durable goods to market. The need for additional capacity has been tough to meet for an industry that perpetually struggles to recruit and retain drivers.

The pandemic exacerbated a shortfall on...

https://www.freightwaves.com/news/economics-101-trucker-pay-will-keep-moving-higher

Higher rates, gains produce record 2021 for Heartland Express

Heartland Express posts 80.2% full-year OR in 2021

Truckload carrier Heartland Express leveraged record rates and gains on equipment sales to post earnings per share of $1 in 2021, an all-time high for the company since it began trading publicly in 1986. Cost inflation was more than offset by pricing and gains, producing an 80.2% adjusted operating ratio for the full year.

Earnings in the 2021 fourth quarter came in at 26 cents per share, 4 cents higher year-over-year and in line with analysts’ expectations, Heartland (NASDAQ: HTLD) announced...

https://www.freightwaves.com/news/higher-rates-gains-produce-record-2021-for-heartland-express

Warehouse, transportation capacity tight with retailers potentially ‘over-ordering’

Warehouse availability contracts as inventory levels rise, LMI report says

Tightness throughout the transportation, logistics and warehousing sectors carried through the end of the year, according to a report published Tuesday. The Logistics Managers’ Index (LMI), a survey measuring supply chain activity, registered a reading of 70.1 during December.

The LMI is a diffusion index, wherein a reading above 50% indicates expansion and a reading below 50% indicates contraction.

While the index was down 3.3 percentage points from November, the industry continues to see...

https://www.freightwaves.com/news/warehouse-transportation-capacity-tight-with-retailers-potentially-over-ordering

Transportation, warehouse capacity lacking, costs soar in November

Lack of space, capacity sends supply chain costs higher in November

A key supply chain report published Tuesday showed further growth and tightening during November. The Logistics Managers’ Index (LMI), a survey measuring activity throughout the transportation, logistics and warehousing sectors, expanded 80 basis points from October to 73.4%.

The LMI is a diffusion index, wherein a reading above 50% indicates expansion and a reading below 50% indicates contraction.

“Overall growth has now been over 70.0 — a level we would classify as significant expansion — 10...

https://www.freightwaves.com/news/transportation-warehouse-capacity-lacking-costs-soar-in-november

U.S. Xpress freight outlook calls for ‘torrid pace’ but consumer concerns loom

Inflation, declining wages and freight bottlenecks threaten volume growth, U.S. Xpress says

A fourth-quarter economic outlook from Chattanooga, Tennessee-based truckload carrier U.S. Xpress calls for a continuation in elevated freight demand moving forward with some signs of caution.

“For the foreseeable future, freight will continue to run at a torrid pace,” the Monday report read.

The outlook noted concerns throughout the overall economy, most notably the direction of consumer spending, and said that when the current freight cycle ends, it will likely be due to declining demand versus...

https://www.freightwaves.com/news/us-xpress-freight-outlook-calls-for-torrid-pace-but-consumer-concerns-loom

Freight volumes ‘capacity-constrained’ in October, rates surge further

Double-digit increases in freight expenditures through the first half of 2022, Cass says

A lack of transportation capacity continued to weigh on freight shipments in October. The shortfall in supply to meet demand led to another significant jump in costs during the month, according to a Monday report from Cass Information Systems.

The shipments component of The Cass Freight Index increased 0.8% year-over-year during the month (2.8% higher than September on a seasonally adjusted comparison), with the expenditures dataset up 37.2% year-over-year (+3.9% seasonally adjusted from the...

https://www.freightwaves.com/news/freight-volumes-capacity-constrained-in-october-rates-surge-further

Transportation capacity falls further and faster in October

LMI above 70% for nine straight months

Transportation and warehouse capacity sank further, according to data from an October supply chain survey released Tuesday. Transportation utilization and pricing increased but at a slower rate.

The Logistics Managers’ Index (LMI), which measures activity throughout various points in the supply chain, logged a 72.6% reading in the month, 40 basis points higher than September. The LMI is a diffusion index, in which a reading above 50% indicates expansion and a reading below 50% indicates...

https://www.freightwaves.com/news/transportation-capacity-falls-further-and-faster-in-october

Costs abound sink Werner’s Q3; long-term margin target raised

Werner's Q3 sags

A multitude of costs caused Werner Enterprises to miss analysts’ third-quarter expectations Thursday. Some of the expense increases are transitory while others are not.

Werner (NASDAQ: WERN) reported adjusted earnings per share of 79 cents, 10 cents better year-over-year but 16 cents light of consensus and 7 cents lower than the second quarter. Management from the Omaha, Nebraska-based transportation and logistics company provided additional color on a call with analysts.

Increased driver...

https://www.freightwaves.com/news/costs-abound-sink-werners-q3-long-term-margin-target-raised

Schneider sees ‘constructive market well into 2022’

Schneider beats third-quarter estimates, raises guidance

Schneider National is calling for more of the same, elevated transportation demand and limited supply, as 2021 comes to an end.

The Green Bay, Wisconsin-based truckload carrier reported adjusted earnings per share of 62 cents for the third quarter, 10 cents ahead of consensus and double the year-ago period. The quarter included a $3.1 million loss on equity investments, which was offset by higher gains on equipment sales.

Schneider National (NYSE: SNDR) updated its full-year 2021 adjusted EPS...

https://www.freightwaves.com/news/schneider-sees-constructive-market-well-into-2022

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