FreightWaves reported that Werner Enterprises (NASDAQ: WERN) is brushing off the seasonal July slowdown in truckload spot rates, with executives telling investors the supply-led recovery remains on track. Tender rejections peaked in June and spot rates have continued to slide from the Fourth of July holiday high, but Chairman and CEO Derek Leathers said at the Deutsche Bank Chicago Industrials Summit that he sees no concern in July's data.
July slowdown viewed as noise
According to FreightWaves, the summer lull has made investors jittery. Second-quarter earnings reports were solid, but shares of most carriers sold off by mid-single to mid-teen percentages. Leathers downplayed the softness, saying at the summit:
There's no concern, if you will, from my perspective about … some of these little snippets of news that we've seen in July.
Regulatory enforcement tightens capacity
FreightWaves reported that Leathers estimates 850 to 900 CDL schools have been forced to close due to insufficient training standards, and roughly 10,000 training programs have been removed from the FMCSA's Training Provider Registry. A ban on electronic logging devices (ELDs) that allowed drivers to manipulate service hours is significantly affecting capacity, with Leathers explaining that "10 trucks were able to behave like 15."
According to FreightWaves, before regulatory enforcement ramped up last year with stricter oversight of English-language proficiency and non-domiciled CDL restrictions, carriers were already exiting the market due to weak economic conditions. Leathers believes more enforcement is on the way, as the FMCSA is likely to see an increase in funding from its annual budget allocation in October.
Restructuring drives Q2 improvement
FreightWaves reported that during the second quarter, Werner's one-way TL fleet saw a big turnaround following a restructuring. Revenue per truck per week (excluding fuel surcharges) jumped 28% year over year, with miles per truck up 16% and revenue per total mile up 10%. The rate increase was notable because Werner had just half the spot market exposure it had a year ago, and length of haul was up nearly 100 miles in the quarter.
| Metric | Q2 2026 vs. year earlier |
|---|---|
| Revenue per truck per week (ex-fuel) | +28% |
| Miles per truck | +16% |
| Revenue per total mile | +10% |
| One-way fleet size | 1,700 units (-34% y/y) |
| TL segment adjusted operating ratio | 94.5% (improved 270 bps y/y) |
The company exited non-profitable accounts and repurposed or disposed of under-utilized trucks, leaving the one-way fleet 34% smaller year over year at 1,700 units, according to FreightWaves. The total TL segment's adjusted operating ratio — the inverse of operating margin — improved to 94.5%, 270 basis points better year over year. Werner expects one-way rate per mile to increase 10% to 13% year over year in the third quarter, and with the turnaround largely complete, the company will now look to grow this fleet again.
Peak season outlook and shipper acceptance
FreightWaves reported that inventories at some of Werner's retail customers are a little lean while others are holding satisfactory levels. The company sees a normal peak season this year, and unlike last year's peak, this year's will have the benefit of significantly higher rates. Leathers said demand is modest but the supply-driven turnaround has legs: "Christmas is still going to come, peak season is still going to be a reality."
Leathers also noted an "increased acceptance" from shippers that the supply crunch "is real," which bodes well for an industry that "hasn't been reinvestable in several years," according to FreightWaves.
The dedicated fleet, roughly 80% of Werner's total TL network, is capturing low- to mid-single-digit contractual rate renewals, FreightWaves reported. Revenue per truck per week (excluding fuel) was 5% higher year over year in the second quarter. Werner acquired dedicated carrier FirstFleet for $245 million in January; excluding FirstFleet, the legacy dedicated operation recorded a roughly 8% increase in revenue per truck per week. That metric is expected to increase 3% to 5% year over year for full-year 2026.
Watch list
- FMCSA funding decision: Leathers believes the agency is likely to see increased funding from its annual budget allocation in October, which could bring more enforcement, according to FreightWaves.
- Third-quarter rate increases: Werner expects one-way rate per mile to rise 10% to 13% year over year in Q3.
- Peak season demand: A normal peak season with "significantly higher rates" versus last year is expected, per FreightWaves.
- Contractual renewals in dedicated: Low- to mid-single-digit increases are being captured, with full-year 2026 growth seen at 3% to 5%.
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