Marten Transport entered the back half of peak season with profit intact but its core one-way truckload business still in the red. For the third quarter ended Sept. 30, the refrigerated specialist posted net income of $2.2 million (3 cents per diluted share) on $220.5 million in revenue. Consolidated operating ratio was 98.8% (98.6% excluding fuel), underscoring how little margin exists in today’s long-haul market.
The pressure point remains over-the-road truckload. That segment reported a $2.0 million operating loss and a 101.9% operating ratio for the quarter — 102.2% when fuel is stripped out — marking another period of sub-100 pricing discipline by customers and insufficient yield for carriers. Marten’s truckload tractors averaged 1,661 in Q3, down from 1,695 a year ago, with average revenue per tractor per week at $4,129 and non-revenue miles improving to 11.0% from 12.2%.
Dedicated and brokerage continue to shoulder profitability. Dedicated generated a 94.9% operating ratio (94.0% ex-fuel) even as revenue fell nearly 11% year over year, reflecting fewer tractors (1,142 vs. 1,296) and cautious network reshaping with shippers. Brokerage posted a 95.9% OR on revenue of $38.8 million; loads rose to 25,940 from 24,628, but margin compression was evident versus last year.
The company’s intermodal chapter effectively closed at quarter-end. Marten finalized the sale of its intermodal equipment and customer contracts to Hub Group on Sept. 30 for $51.8 million in cash, removing more than 1,200 refrigerated containers from its balance sheet and clarifying its focus on truckload, dedicated and brokerage. As of Sept. 30, the company reported no refrigerated containers, total tractors of 2,823 (down from 3,080 a year ago), and a debt-free balance sheet supported by $49.5 million in cash.
Management’s message is that time and discipline will do more than chasing low rates. Marten flagged “historic” freight recession dynamics — oversupply, weak demand and inflation in operating costs — while arguing that recent immigration enforcement around non‑domiciled CDLs, English proficiency and B‑1 visas could tighten driver supply and open up pricing opportunities as capacity exits accumulate. It’s a thesis other carriers are beginning to echo.
Street reaction to the print reflected the squeeze: external tallies show revenue and EPS landing shy of consensus, reinforcing that even well-capitalized carriers have little room for error until pricing power turns.
Context from peers this week supports the view that truckload remains the laggard. Knight‑Swift’s third-quarter update showed less‑than‑truckload expansion helping to offset truckload softness, while earnings per share missed expectations — a reminder that scale and diversification blunt, but don’t erase, the drag from one‑way TL. Covenant Logistics likewise pointed to higher operating costs and under‑utilized equipment in its truckload units as dedicated growth, while promising, pressured near‑term margins.
Why it matters for shippers and carriers: Marten’s results illustrate the current equilibrium. Shippers are still commanding price in one‑way refrigerated truckload, but carriers with diversified books can keep service levels and capital intact without capitulating on rate. If enforcement-driven capacity attrition materializes and seasonal pockets firm, dedicated and brokerage should remain resilient while truckload gradually works back toward sub‑100 ORs. In the meantime, expect carriers to keep trimming fleets, pruning underperforming contracts and leaning on data-driven routing to protect what little margin exists.
Sources: FreightWaves, GlobeNewswire, Nasdaq, Investing.com, Covenant Logistics
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