Werner sees multi-year freight upcycle ahead
Werner's CEO says enforcement has removed only a fraction of truck capacity, and rates could keep rising through peak season.
Enforcement-driven capacity reductions are still in the early stages and will keep pushing freight rates higher into peak season, according to Werner Enterprises (CCJ Top 250, No. 14) executives.
During the company’s earnings call Tuesday, Werner Chairman and CEO Derek Leathers said cost pressures that impacted third-quarter earnings are largely short-term, and they don’t change his view that the industry is barely at the beginning of a freight upcycle.
The industry remains “in the early innings of capacity reductions as a result of enforcement efforts,” he added, noting that about 15% of industry capacity is out of alignment with current regulations.
Enforcement has widened to cover CDL schools audits and CDL issuance, Leathers said, noting that B-1 visa cabotage enforcement is “only really just getting started."
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