What is happening: The largest truckload business in NA has managed to boost its earnings by reducing the size of its largest trucking unit.
Reduction: Knight-Swift Transportation chose to reduce the size of the unit in order to make it more efficient and streamlined. The Swift truckload fleet had 1,500 fewer trucks in Q4 compared to the same time in 2017.
Carriers: Other carriers were looking to add capacity, with the freight market in a boom, while Knight-Swift chose to reduce.
Earnings: Knight-Swift saw earnings improve in Q4 of 2018 compared to the previous quarter. Operating profit also went up 35.8% compared to 2017’s Q4, up to $90.8 million. Revenue fell 13.2%.
Future: Trimming down the fleets may give them the advantage once the market turns again.