Schneider National (SNDR) Morgan Stanley‘s 12th Annual Laguna Conference 2024 summary

Market trends and seasonality

• Recent months have shown a return to normal seasonality, similar to 2019, with no strong market inflection yet.

• Seasonal trends are evident in back-to-school and Halloween restocking, with customer plans resembling previous years.

• No significant pull-forward of peak season ordering is observed; timing remains typical.

• Intermodal activity began to pick up in June and July, with a tighter connection to business.

Supply, pricing, and customer dynamics

• Truckload supply attrition is slow, with smaller carriers under financial strain and limited ability to scale up when the market corrects.

• Customers are aware of potential supply constraints and are preparing for future market corrections.

• Bid season for 2025 is underway, with pre-work and planning meetings spanning the next five months.

• Customers are shifting more business from non-asset brokers to asset-based carriers as spot and contract rates converge.

Business mix and growth strategy

• The business mix has shifted to two-thirds dedicated and one-third network, with dedicated showing strong organic and inorganic growth.

• Recent acquisitions have expanded capabilities, especially in automotive and retail sectors.

• No fixed target mix; investment decisions are return-based, with flexibility to pivot as market conditions change.

• Dedicated continues to grow due to high service expectations and omni-channel distribution needs.