Werner CEO sees ‘capacity attrition’ positioning carrier for recovery

“If enforcement appetite remains, and I think we’d all agree it does, there is capacity that will be exiting this market — and it will be more meaningful than what we’ve seen up until now,” Leathers said.

He added that even if some sidelined drivers return in response to tightening supply and rising rates, it would “pale by comparison” to the number of exits expected due to new compliance crackdowns and CDL enforcement.

Technology investments driving cost savings

Leathers emphasized that technology automation and AI remain central to Werner’s cost-savings strategy.

“In logistics, automation is nearly fully implemented,” Leathers said. “We’re automating any and everything we can to take friction out of the process — and you can see it flow through in our operating expenses.”

He said those systems allow Werner to add volume without proportionally increasing operating costs, while in Truckload Transportation Services (TTS), digital conversion is still in progress.

“Until you can unplug and convert completely, it represents a short-term headwind,” Leathers said, adding that AI is now being deployed across recruiting, billing, and collections to “do more with less.”

Dedicated fleet and retail exposure offer resilience

Leathers said the company’s dedicated pipeline remains robust, with most new fleet launches deferred to early 2026.

“Our dedicated implementations will be true dedicated — difficult-to-serve, defensible-type fleets, not just volume masquerading as dedicated,” Leathers said. “It’s painful to implement, but once you’re on the other side, the retention value is worth it.”

Werner’s retail-heavy customer base has helped sustain volumes heading into the holiday shipping season.

“We’ve seen some uptick in September, and that strength has continued through October,” Leathers said. “It’s seasonally normal for us — not an anomaly — and it positions us for a more normalized peak compared to the past few sub-seasonal years.”

Industry advocacy: tort reform and safety enforcement

Leathers also urged industrywide collaboration on tort reform, calling current state-level disparities “unsustainable.” He argued for shifting accident litigation involving interstate carriers to federal courts and eliminating state “gag rules” that prevent juries from hearing whether claimants were wearing seatbelts.

“We cannot continue to live in a world where accidents can grow overnight due to bad rulings,” Leathers said. “We’re going to stay engaged — along with many others in this industry — to make sure we see meaningful reform.”

Outlook

Werner ended Q3 with $695 million in liquidity and $725 million in total debt, maintaining a modern fleet averaging 2.5 years for tractors. The company narrowed its full-year Truckload fleet growth guidance to between –2% and 0% and expects continued freight softness in Q4.

“This prolonged freight recession has strengthened us even further for the long haul,” Leathers said.