Werner Enterprises Inc Morgan Stanley's 14th Annual Laguna Conference
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Great. Next up we have Werner Enterprises, and very happy to have with us President and CFO, Chris Wikoff, President, Nathan Meisgeier, and SVP of Pricing and Planning. Gentlemen, thanks so much for joining us.
Sure. Obviously, the cycle has taken precedence in topic before.
Maybe start off by giving us how has progressed? Where are we right now, and what kind of?
Overall, our view market. Overall market.
Yep. Fundamentals are strong. Better balance helpful.
A number of different metrics. I know there's been a focus over-indexing on more recent spot rates being a little bit softer.
Yep. Debate on, is that seasonal or is that sub-seasonal?
It's a data point, but when we're talking about rate, we're really talking about overall blended rate, contractual rates that continue to be high single digits, low double digits in terms of contract renewals.
All of that is positive. It's more supply-driven. We think that's going to continue. Enforcement's been multi-pronged. It's also maturing. Not to deep dive into that right now, but while it's supply-driven, the freight flows continue to be a positive, steady. We're seeing higher bid volume and some record highs on bid volume in dedicated. Some continued elevated mini bids in one-way, as I think shippers are transitioning from spot and evaluating the market, and transitioning more to contract, and some of that in-between space. Overall, I think it's positive. Not much to point to in terms of demand outside some of the tech- Yep and data center build-out, but overall, I think the fundamentals are strong despite the fact that it's more supply-driven.
Got it. That is great to hear. Maybe to unpack that a little bit, our next question was about the seasonality, what we saw in the late summer, kind of that lull, if you will, in some of the data. Again, do you think that's largely seasonal, or do you think there's something else going on?
I think some of it's seasonal.
Okay. As I said, I think there's going to be ebbs and flows to spot.
Sure. As in a tighter market, shippers who have had a slice of their supply chain that's been more geared towards spot, they're evaluating that and other options, which can be moving into contract.
There's going to be some ebbs and flows to spot. I think it's one metric. The tender rejects continue to be elevated. That too may have had some softness relative to some other months, but overall, it's still 3X what it was a year ago in terms of tender rejects. I wouldn't over-index on spot.
Got it. From my seat, I think the fact that contract rates have held up or even gone up in that period that spot has come off a little bit of its highs is an indication that this probably is seasonality and a sign that that kind of trend is positive. Do you think that's fair? It sounds like you're seeing that as well through- Yes .
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