Werner Confident in Trucking Recovery Despite July Slowdown

Werner Enterprises leadership dismissed concerns about July's seasonal slowdown in the trucking market, pointing to a structural **supply-led recovery** driven by regulatory enforcement and CDL driver constraints. Chairman Derek Leathers highlighted that roughly 850-900 CDL schools have closed due to training standards and 10,000 training programs were removed from the FMCSA registry, permanently reducing available capacity. Additionally, crackdowns on fraudulent electronic logging devices (ELDs) that previously allowed operators to circumvent hours-of-service rules have eliminated artificial capacity, what Leathers termed "10 trucks behaving like 15." Werner's own financial results validate this thesis.

The company's one-way truckload fleet, restructured to exit unprofitable business, achieved a 270 basis point improvement in adjusted operating ratios to 94.5% despite being 34% smaller year-over-year. Revenue per truck per week increased 28% year-over-year, driven by 16% higher miles and 10% improved per-mile rates. The dedicated fleet segment, representing 80% of Werner's operations, is capturing low to mid-single-digit contractual rate renewals, with expectations for 3-5% full-year revenue growth.

Management projects one-way rates will increase 10-13% year-over-year in Q3 and targets low-double-digit margins during the freight cycle's middle, achievable as higher gains from used truck sales and automation initiatives take hold. For supply chain professionals, this signals a structural shift: capacity constraints are real and durable, spot rates remain elevated year-over-year, and peak season demand, historically bolstered by holiday retail, should command premium pricing. Shippers are increasingly accepting that the supply crunch is structural, not cyclical, which supports carrier profitability and reduces the likelihood of aggressive rate deflation.