Dive Brief:
- Marten Transport plans to significantly increase its net capital expenditures in 2023 to $225 million, according to a Q1 investor presentation.
- The figure is a surge from previous annual spending, which ranged from $106 million to $142 million per year over the last four years.
- The capital expenditures include commitments to purchase $164.3 million in new revenue equipment, the carrier noted in an annual filing in February.
Dive Insight:
Capital expenditure plans for carriers in early 2023 suggested notable spending during the year, but changes in the market and OEMs’ ability to deliver complicate the matter.
Carriers such as Schneider National note they’re getting less money from used vehicles and are spending more on new vehicles, according to quarterly and annual reports.
It was unclear how Marten’s increased spending would exactly affect its fleet replenishment and potential expansion. As of Dec. 31, the carrier had 3,564 company-owned tractors, 3,541 refrigerated trailers and 2,212 dry van trailers. The company did not return calls seeking comment.
Meanwhile, some LTL firms have questioned their spending plans amid the freight downturn, scaling back on CapEx.
For Werner Enterprises, CapEx ranges were tighter in previous years to the tune of $25 million, but they’ve widened back to a range of $50 million. Noting the greater uncertainty might be a turnoff for investors, CEO, Chairman and President Derek Leathers on an earnings call in February moved to reassure stakeholders against concerns that the manufacturing environment could be volatile.
“We've seen OEMs start to kind of be able to get through some of the bottlenecks they've been faced with,” he said, adding they’re encouraged by “early returns in terms of equipment receipts.”
