Tight capacity conditions–triggered largely by weather-related disruptions–are
resulting in continued strength in spot truckload activity in February and core rate
growth of roughly +3% yoy, above our initial expectations. Elevated operating costs
due to severe weather 1QTD likely limit any 1Q14 EPS upside despite healthy spot market
trends. However, we expect outlooks to be very constructive given better-than-expected
core pricing growth and the likelihood of solid freight volume trends in upcoming months
after severe weather disruptions (presumably) normalize.
