Knight-Swift Signals Truckload Recovery as Feds Target Cargo Theft Ring

The largest US truckload carrier said this week that freight markets are finally turning in its favor. Meanwhile, federal prosecutors laid bare how organized criminals are using hijacked carrier identities to steal millions of dollars in goods.

Knight-Swift Transportation Holdings Inc. reported third-quarter adjusted earnings of 83 cents a share on Wednesday. That was ahead of analysts’ estimates and well above its own guidance range of 71 to 77 cents. Revenue rose 14% to $2.2 billion. In the truckload unit, revenue per loaded mile, excluding fuel, climbed 10% from a year earlier even as the company ran 4% fewer tractors. The segment’s adjusted operating ratio improved by 7 percentage points to 89.2%.

Chief Executive Officer Adam Miller said he expects “momentum across our businesses to keep building.” He pointed to contract rate resets, cost cuts and seasonal spot-market opportunities. The Phoenix-based carrier forecast fourth-quarter earnings of 78 to 84 cents a share, and its shares rose more than 4% in late trading.

Smaller operators are struggling to keep up, however. Sixteen trucking companies, most of them with fewer than 20 trucks, filed for bankruptcy protection between mid-September and Oct. 21.

In Connecticut, prosecutors on Tuesday announced conspiracy charges against a truck driver accused of taking part in a scheme that stole at least 24 freight shipments. Investigators allege the group bought or took control of established trucking companies. It then used their federal registration numbers and email accounts to pose as legitimate carriers and book loads through freight brokers.

The cargo, which included electronics, clothing and food, never reached its destination. Prosecutors attribute more than $12 million in estimated retail losses to the defendant, who has pleaded not guilty. The FBI is leading the investigation.

Cargo theft is among the top policy priorities for the American Trucking Associations.