Dive Brief:
- Werner Enterprises reported significant revenue increases for Q2, noting help from restructuring its one-way network starting at the end of 2025, per a news release Tuesday.
- That amounted to a $121 million increase excluding fuel surcharge or 27% jump year over year, the release said.
- One-way truckload average revenues per truck per week increased nearly 28% from restructuring efforts over the last two quarters, higher spot rates and contractual rate increases, the carrier said in the release.
Dive Insight:
The restructuring moved the carrier’s one-way network away from unprofitable freight and created a denser network, CEO Derek Leathers said on an earnings call.
“We made the decision to build something that we think will be sustainable long term,” Leather said, noting that the short-term pain is behind the company now.
The transformation targeted areas such as expedited and cross-border Mexico, and reduced its truck count from 1,960 at the end of Q1 to 1,735 at the end of Q2, a 35% drop year over year.
Consequently, its average revenue per truck per week in One-Way Truckload was $6,114. “The strategic restructuring in One-Way Truckload has delivered the strongest revenue per truck growth in a decade,” the release said.
Other carriers have also been implementing restructuring plans.
J.B. Hunt Transport Services has removed over $135 million in structural costs over the past year through simplified processes, efficiency gains and tech automation, CFO Brad Delco said on a Q2 earnings call.
Meanwhile, ArcBest’s recently announced restructuring calls for reducing its workforce and consolidating service centers in its ABF Freight LTL network.
