Topics: Carrier Solutions, Freight Rates, Newsletters, Economic Shifts
Spring is in full bloom, and we’re going to focus on growth in this newsletter — growth in earnings, growth in delivery networks, and growth in truck parking spots. Of course, no garden is without its weeds, so we’ll also address disappointing earnings, company closures, and M&A pullbacks as well.
At Cass Information Systems, we provide carriers with all the tools they need to grow their businesses. We also can help them weather any financial turbulence they experience in an uncertain economy.
Schneider Reports Q1 Revenue, Earnings Jumps
Truckload carrier Schneider National reported first-quarter net income of $26.1 million, up from $18.5 million in Q1 2024.
“Revenues excluding fuel surcharge of nearly $1.3 billion were the second highest for a first quarter in our history, and all our reportable segments improved revenues, earnings, and margin year over year,” Schneider CEO Mark Rourke said.
Truckload revenue increased 14% year over year to $613.7 million from $538.1 million, driven by the acquisition of Cowan Systems and improved revenue per truck per week, according to Transport Topics.
“We delivered results for the quarter in line with our expectations while navigating the fluid operating environment,” Rourke said.
XPO Celebrates Margin Improvement in Tough Market
XPO has recorded 370 basis points of margin improvement over the past two years.
“Less-than-truckload carrier XPO has improved margins through the downturn while the rest of the industry has struggled,” FreightWaves’ Todd Maiden reported. “The Greenwich, Connecticut-based LTL carrier said [April 30] it isn’t backing off its outlook for further improvement this year even as a trade war threatens to extend a downcycle already long in the tooth.”
First-quarter yield, excluding fuel surcharges, was 6.9% higher year over year. Still, XPO reported a 4% year-over-year revenue decline from $1.22 billion in Q1 2024 to $1.17 billion and an EBITDA drop from $255 million to $250 million.
Amazon Building Rural Delivery Network
Amazon expects to have 210 delivery stations across the country up and running by the end of 2026 in its effort to build a dedicated rural delivery network.
Amazon, which historically has handed off rural shipments to carriers such as the U.S. Postal Service or UPS, reportedly plans to spend $4 billion on the initiative, which could create as many as 100,000 jobs.
UPS announced in April that it expected to cut 20,000 jobs this year and close dozens of facilities as it reduces Amazon shipments.
Love’s Adds 121 Truck Parking Spots in Ohio
Love’s new 17,600-square-foot travel stop in Belmont, Ohio, at Exit 208 off Interstate 70, includes 121 parking spaces for trucks.
According to the Trucking Parking Club, more than 40,000 additional truck parking spots are needed across the country to meet demand.
“This scarcity of parking spots has become a major concern for the trucking industry, as it directly impacts driver safety and industry logistics,” Evan Shelley, co-founder and CEO of Trucking Parking Club, wrote in a blog. “Drivers operating larger vehicles often have far more limited options, leading to risky parking decisions such as stopping on highway ramps or shoulders.”
Love’s plans to construct 20 travel stops and upgrade 50 others to help address the shortage of truck parking spaces.
Industry Pushes for Passage of Supply Chain Crime Bill
The American Trucking Associations (ATA) and Intermodal Association of North America (IANA) were among the industry organizations represented at an April 29 House Transportation and Infrastructure Committee roundtable panel pushing for adoption of proposed legislation aimed at reducing cargo theft.
“Directly or indirectly, virtually all trucking companies are victims of cargo theft. Either they are victims of crime, or they are spending so much money to defend against being targeted that they are still victims,” Bob Costello, ATA’s chief economist, told lawmakers.
The Combating Organized Retail Crime Act calls for the creation of the Organized Retail and Supply Chain Crime Coordination Center within the Department of Homeland Security.
“Organized theft rings deploy innovative tactics to pilfer goods, and it’s causing financial harm to businesses, putting employees and consumers at risk and funding transnational criminal organizations throughout the world. It’s time for the law to catch up and prevent criminals from exploiting the internet and online marketplaces,” bill co-sponsor Chuck Grassley, R-Iowa, said.
Old Dominion Sees Amazon LTL as ‘Opportunity’
Amazon rolled out its LTL service with access to more than 60,000 trailers and thousands of lanes across the United States in April, but Old Dominion Freight Line, for one, doesn’t feel threatened.
“As I understand it, it’s mainly geared towards their own suppliers and I actually see it as an opportunity for us to help them with their logistics needs,” Old Dominion President and CEO Marty Freeman said during the Q1 earnings call, according to Supply Chain Dive. “If their suppliers need to pick up the same day, we certainly cover all 48 states and we’re able to help them out with that.”
CFO Adam Satterfield said, “We’ve got the best on-time claims-free service and can help those that are delivering into that retail world and add value to their supply chain. So I think that’s something that we’ll continue to see as an opportunity of growth for the industry, but an even bigger opportunity for Old Dominion.”
Old Dominion reported a 5.8% year-over-year decrease in total revenue to $1.37 billion and a 6.3% decrease in LTL tons per day in the first quarter.
TFI Pulls Back on Acquisition Strategy
TFI International CEO Alain Bédard said on the first-quarter earnings call that the Canadian company’s M&A activity this year will be “minimal” because of tariff uncertainty.
“We had to walk away from a transaction that was a great transaction for both parties, the seller and us, and we had to walk away because of all this environment,” Bédard said, according to Trucking Dive. “Because of all this uncertainty, we said, ‘No, forget about it.’”
In recent years, TFI acquisitions have included UPS Freight, Daseke, JHT Holdings, Hercules Forwarding, Sharp Trucking Services, LJW Tank Lines, and several Yellow Corp. terminals.
Bédard said on the earnings call that “another acquisition of size in the U.S.” remains part of the company’s long-term strategy.
Florida Carrier Shutters After 44 Years in Business
Florida reefer carrier Davis Express blamed more than two years of net losses and an uncertain financial outlook for its closure at the end of April after 44 years in business.
“The last few years have been very challenging for refrigerated trucking as costs continue to rise while rates remain flat or have decreased,” owner Jimmy Davis wrote in a Facebook post. “We have been unprofitable since early 2023 and do not see any signs of improvement in 2025.”
Davis said the company would make deliveries through April 23 and get all 160 trucks and trailers back to the Starke, Florida, terminal by the end of the month.
“All employees will continue to be paid timely every Friday and will receive benefits through the June 15 pay period. We will continue to employ mechanics and operate the shop for the time being as we take equipment out of service and sell,” Davis said.
With 140 drivers, Davis was one of the largest employers in Florida’s Bradford Country.
OOIDA Opposes Highway Trust Fund Fee
The Owner-Operator Independent Drivers Association (OOIDA) has told the House Transportation and Infrastructure Committee that it opposes a $100 annual fee on motor carriers to bolster the Highway Trust Fund.
“Small-business truckers already pay numerous taxes and fees to the Highway Trust Fund, and as part of this reconciliation process, we believe Congress should eliminate unnecessary fees,” OOIDA President Todd Spencer wrote in a letter to the committee. “There is broad agreement that program beneficiaries, such as road users with the Highway Trust Fund, should be the ones paying into it. Instead, motor carriers will view [the provision] as a fee they pay to provide liability protections for brokers. If Congress wants to enact this protection for brokers, it should do so with a well-defined program that isn’t funded on the backs of small-business truckers.”
OOIDA argued that the proposed fee would be used to duplicate easily accessible free Department of Transportation data.
“Motor carriers should not be forced to pay $100 a year to access a website that tells brokers and other industry professionals whether or not they are permitted to operate,” Spencer wrote. “If FMCSA has determined that a carrier isn’t fit to operate, then the agency should notify carriers directly and take appropriate action. Furthermore, this system is designed to provide liability protections to brokers. In essence, carriers will be footing the bill to protect brokers from lawsuits.”
Cass Helps Fuel Carrier Growth
At Cass Information Systems, we work closely with carriers to design flexible, customized solutions that align with their business goals. And we understand goals can change as the freight market does. That makes our flexible solutions more important than ever.
Our offerings include:
- Cass Early Payment Solutions, which provide the steady cash flow needed for smooth day-to-day operations as well as structured financial growth essential for long-term success.
- Cass Equipment Finance Solutions, which help fuel carriers’ growth, enhance efficiency, and drive businesses forward.
Contact us today to learn more.
