Forward Air Bolsters Freight Demand Amid Capacity Crackdown

Forward Air Corp. reported top-line growth for the third quarter Nov. 9 as freight demand bolstered ongoing capacity reductions. The Department of Transportation has clamped down on legally questionable trucking capacity throughout the past year. The industry already had seen capacity leave since the freight boom brought on by COVID led to an oversupply of drivers. This started what would become an unusually prolonged freight downcycle as supply and demand struggled to regain balance. “Regarding the broader logistics space, capacity in the trucking industry has been tightening as the number of [commercial driver licenses] continue to be constrained,” Forward Air CEO Shawn Stewart said during an investor call. “Combine that constraint with consistent demand, and that puts us in a very good place to continue improving profitability as we have each quarter this year.” The Greeneville, Tenn.-based company posted net income of $9.12 million, or 34 cents a diluted share, for the three months ending Sept. 30. That compared with a loss of $23.8 million, or negative $7.06, during the same time the previous year. Consolidated operating revenue increased 6.7% to $673.9 million from $631.8 million. “In constrained environments such as this, shippers typically focus on stability and consistency to ensure capacity and to mitigate risk,” Stewart said. “We are well-positioned to grow in this market environment through disciplined cost management and exceptional customer service.” FWRD Quotes by TradingView See more transportation stock listings Stewart noted that the company has reported the best quarterly revenue in its history for the past two consecutive quarters. He also said operating income improved…

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