Total revenues at Werner Enterprises ticked up during the third quarter by 1 percent, year over year, to $511.73 million, while trucking revenues declined by 1 percent.
So far this year, trucking revenues are down 2 percent to $955.06 million. On average, revenues per total mile increased by 2.4 percent during the quarter, as monthly truck miles fell by 3.5 percent, year over year, and 2.3 percent from the second quarter.
According to officials, freight demand during the quarter increased within seasonal norms in August and September, outpacing the flat growth during those two months in 2012. Werner points to improved customer demand and tighter capacity from the government’s hours-of-service changes as reasons for freight growth.
“We believe there are several truckload capacity constraints including an older industry truck fleet, the higher cost of new trucks and trailers, significant safety regulatory changes and a challenging driver market,” the company wrote in an earnings release. “We continue to work jointly with our customers to secure sustainable transportation solutions across all modes and to offset increased rates through enhanced optimization and transportation solutions whenever possible.”
Aside from capacity, which Werner says is constrained by the economy and regulations, the carrier points to driver recruitment as one of the major issues in today’s market.
“Significant factors included a declining number of, and increased competition for, driver training school graduates, a gradually declining national unemployment rate, and increased job competition from strengthening housing construction and hydraulic fracturing markets,” the company wrote.
Werner 3Q revenues up slightly
