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Werner CEO says driver attrition is in a supply-driven trucking upswing
Werner CEO Derek Leathers cited regulatory pressure, including ELD withdrawal, plus the industry’s shifting liability risk as tailwinds for the company’s driver supply.
Werner’s CEO Derek Leathers said the trucking driver attrition picture is now in the “third inning,” framing the market as a supply-driven upswing after the company released quarterly earnings Tuesday, according to Yahoo Finance.
Leathers pointed to what he described as structural capacity attrition unfolding as previously expected, attributing the tightness to intensifying regulatory pressure, including enforcement related to non-domiciled CDOs, English language proficiency, and cabotage.
He also highlighted FMCSA’s ongoing withdrawal of approval for various ELDs, saying about one-third of ELDs either have been removed or are on the way out. Leathers said the reduction in ELD options is dismantling shadow capacity and compounding structural supply contractions.
On the earnings call, Leathers further referenced spillover from the Montgomery vs. Caribe case, saying shippers and brokers are taking a more cautious view of whom they do business with. He tied that dynamic to Werner’s strengths, pointing to what he described as a greater liability risk now faced by brokers, including a Dallas jury decision against C.H. Robinson.