Knight-Swift again eyes big rate increases as new bid season nears

Knight-Swift Transportation, a major trucking company, anticipates substantial rate hikes as the annual bidding cycle commences. The company's strong performance in the third quarter, which surpassed industry averages in both tender rejections and spot rates, has enabled it to restore its margins. Knight-Swift's CEO, Adam Miller, revealed that the firm's spot pricing trend was above public indicators throughout the quarter, while tender rejection rates remained two to three times higher than the broader market.

The company's adjusted earnings per share for the quarter amounted to 83 cents, exceeding both the prior-year quarter and analysts' expectations. Knight-Swift's revenue grew by 14% year-over-year, with revenue per tractor increasing by 11% year-over-year, and loaded miles per tractor rising by 1%. The carrier aims to achieve a 650 to 750 basis points year-over-year margin improvement in the fourth quarter, projecting an 85.9% adjusted operating ratio.

Knight-Swift, which entered the less-than-truckload market in 2021 through acquisitions, plans to expand its national network of terminals, currently focusing on the Northeast region.