Reported about 6 hours ago
RXO is experiencing a significant 'squeeze' due to higher spot rates that contradict its locked-in lower contractual rates, impacting its earnings and market position. CEO Drew Wilkerson noted that capacity is exiting certain regions, with regulatory changes exacerbating the situation, suggesting an ongoing 'higher for longer' period in freight rates. Despite a strong acquisition of Coyote Logistics, RXO's financial results are struggling, prompting a need for cost cuts and efficiency improvements as they navigate these challenging market dynamics.
Source: YAHOO