Werner CEO: Freight Downcycle Likely Nearing End
Werner Enterprises' CEO Derek Leathers believes the worst of the freight downcycle is over, despite ongoing challenges and volatile fuel costs.
After a challenging period for Werner Enterprises, Chairman and CEO Derek Leathers optimistically predicts that the worst of the freight downcycle may be behind. Leathers provides insights:
- Spot-market-dependent carriers’ cash piles have been larger than anticipated
- Fuel costs: Up 16% since beginning of July
- Expectation: ‘Normal replenishment cycle’ for customers in future
- Q3 Forecast: 4% to 7% y/y decline in one-way rate per mile
Leathers acknowledges the endurance of smaller carriers and mentions Werner’s cost-saving initiatives of over $40 million, a significant portion of which have already been enacted. As the market recovers, Leathers assures that Werner will remember which shippers honored their agreements during tough times.