Werner CEO Says Freight Market Is Nearing Normal

Werner Enterprises CEO Derek Leathers shared optimistic insights at the Wells Fargo 2024 Industrials Conference, suggesting the freight market is on the verge of a significant adjustment.

Leathers highlighted that inventory levels have normalized, allowing retailers to enter a replenishment cycle not seen in years. This shift could signal a recovery for the trucking industry, which has been in a freight recession for nearly two years.

Key Points:

• Inventory Levels Normalized: Leathers mentioned that retailers have adjusted their inventories post-COVID and are now in a stable replenishment phase.
• Consumer Demand: Despite no significant surge in consumer spending, demand has remained stable, contributing to the market's adjustment.
• Bid Season Stability: This year's bid season showed more stability compared to 2023, with less price pressure and churn, indicating a closer approach to an inflection point in the market.

Leathers emphasized that Werner Enterprises remains disciplined with rates, holding firm on pricing to navigate the market's challenges effectively.

Source: Transport Topics