WERNER Enterprises * USA: “We’re getting back to equilibrium on rates”
* Nebraska - Werner CEO, Derek Leathers: TL rates getting back to “equilibrium” after slump
--- The brief period of bargain truckload rates that shippers enjoyed earlier this year is ending as carriers have reduced capacity to adapt to the slight drop in freight demand in 2016’s first half... “We’re getting back to equilibrium on rates,” said Derek Leathers, president and CEO of Werner Enterprises, the nation’s fourth-largest... The Great Recession reduced 18 percent truckload capacity. Truckload carriers have slowly rebuilt that capacity but the “bad news is we did it a little too much,” Leathers said... Large asset-based truckload carriers must adapt to changing shipper needs. That means developing solutions to a wider array of transportation problems to include greater use of different modal solutions even if those solutions require use of outside carriers... Even in the best of times, trucking companies have net profit margins of 3 to 4 percent. “It’s a slim margin game so we want to make sure we manage our business right,” Leathers said... Still, he remains optimistic that asset-based carriers such as Werner will be successful if they are managed correctly. “Models don’t haul freight. Trucks and truck drivers do.” Leathers said. “You have to place that bet in companies that haul freight” ...
(Photo: Werners' trucks) -- Omaha, NEB, USA - Logistic Management, by John Schulz - September 6, 2016
Labels: trucking industry news USA