Werner’s Leathers Expects Accelerated Capacity Reductions in Trucking Industry

Werner Enterprises CEO Derek Leathers expressed optimism that the trucking industry is entering an upcycle as capacity declines. The company reported a third-quarter net income of $6.6 million, with revenue rising 23% to $950.5 million. Leathers expects peak revenue and spot rates to strengthen as holiday demand meets capacity reductions, despite ongoing pressures from fuel, labor, and reserve costs. He attributes the decline in capacity to the Department of Transportation’s enforcement of non-domiciled commercial driver licenses and English-language proficiency standards, as well as increased use of technology and agency collaboration. Leathers also noted that insurance premiums, carrier vetting, and heightened litigation risk are creating a higher barrier to entry for new supply, leading to a stronger and more sustainable market. Werner’s investments in recruiting, driver training, and onboarding costs are expected to support customer demand and improve asset productivity. The company’s third-quarter results showed a 37% increase in Truckload Transportation Services revenue and a 7% decline in Logistics revenue.