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Diesel Surge Swallows Rate Gains as Carriers Report Squeezed Margins

Major truckload carriers posted double-digit revenue growth this quarter, but surging operating costs are preventing profits from following suit. J.B. Hunt, Werner and Heartland Express all reported the same market dynamic: pricing power has returned, yet fuel and labor expenses are consuming most revenue increases before reaching the bottom line. Diesel prices jumped 72% year-over-year, while contract rates climbed 18%. This gap signals further rate increases will be needed just to maintain current margins. Hunt's operating revenue rose 24%, but net earnings increased only 1%. Werner cited $0.18 per share in cost headwinds tied to fuel and driver recruitment. Heartland reported a 98.7 operating ratio, with management pointing to fuel inflation and employee-related expenses. Intermodal volumes are accelerating as shippers seek the 30% cost savings benefit versus highway in today's market.