Schneider Locks Double-Digit Contract Rate Hikes as Spot Nears 2021 Peak

How much are contract rates rising in the current market?

Schneider National's one-way fleet locked double-digit rate increases on contract renewals in the second quarter. The company reported adjusted earnings per share of 29 cents, 8 cents higher year over year, and raised its full-year EPS guidance to 90 cents to $1.10, an 18% increase from its previous outlook. President and CEO Jim Filter said the positive impact of non-compliant capacity exiting the market has been realized more quickly than initially anticipated.

Schneider increased its spot market exposure during the quarter, noting June closely resembled March 2021, the prior cycle peak. The company said a capacity-constrained truckload market is only in the early stages of rate recovery and that it will use the favorable imbalance to recoup multiple years of significant cost inflation. Mini-bid activity is up as shippers grow more concerned with securing capacity for peak season.

The one-way fleet recorded a 16% year-over-year increase in revenue per truck per week. Truckload revenue increased 1% to $628 million as a 5% increase in revenue per truck was partially offset by a 4% decline in average trucks in service. The company said the lower tractor count was largely due to a tighter driver hiring market, but improved asset utilization is offsetting the lower truck count.

What's happening to Schneider's truck count?

Schneider's average trucks in service fell 4% year over year. The company attributed the decline to a tighter driver hiring market. However, the one-way fleet's 16% jump in revenue per truck per week more than offset the capacity reduction, driving the truckload unit's operating ratio to 91.8%, 180 basis points better year over year.

The dedicated fleet reported a 1% increase in revenue per truck per week. Schneider flagged the loss of a large dedicated customer, which will be a headwind in the third quarter and has been accounted for in the company's guidance. The company sold dedicated service on 500 new trucks in the first half of the year and said new dedicated contracts will backfill some of the open trucks from the customer departure. It may also move some units over to the one-way fleet to take advantage of the spot market.

Finding drayage drivers is getting more difficult, Schneider said, but the company isn't adding third-party operators to chase volume. The intermodal unit reported a 93% operating ratio, 90 basis points better year over year, despite revenue per load declining 2% as length of haul fell.

How are intermodal and logistics rates moving?

Schneider's intermodal unit has been getting low-single-digit rate increases, but more recent contract renewals are garnering mid-single-digit increases. Intermodal revenue slid 1% year over year to $262 million. The company is prioritizing driver availability over volume growth in the drayage segment.

Logistics revenue increased 11% year over year to $376 million. The unit booked a 96.8% operating ratio, 90 basis points better year over year. Consolidated revenue of $1.57 billion was 10% higher year over year and better than the $1.52 billion consensus estimate.

What this means for small fleets

Schneider's double-digit contract rate increases and comparison of June spot conditions to March 2021 signal that the rate environment has shifted decisively in favor of carriers with capacity. The company's willingness to reduce its truck count rather than chase volume at lower rates, combined with its increased spot market exposure, suggests that carriers with available trucks can command premium pricing in the current market.

For small fleets, the key data points are the 16% year-over-year increase in revenue per truck per week on the one-way side and the rising mini-bid activity as shippers scramble to lock capacity ahead of peak season. Fleets that held capacity through the downturn are now positioned to recoup years of cost inflation through contract renewals, while those that can flex into spot markets may see conditions similar to the 2021 cycle peak.

Schneider lowered its full-year net capex plan to a range of $350 million to $400 million as it will purchase fewer trailers than previously planned. Net debt leverage ended the quarter at 0.2x, down from 0.3x at the end of 2025. The company reported full-year 2025 adjusted EPS of 63 cents, making the raised 2026 guidance of 90 cents to $1.10 a substantial year-over-year improvement driven by pricing power rather than volume growth.