Ryder System reported an uptick in decision-making from its supply chain customers compared to other segments, despite market uncertainty due to the freight recession and U.S. tariff policy, CEO Robert Sanchez said on a Q2 earnings call.
“We have seen a pickup in sales on the Supply Chain side. We got some larger customers that are making decisions, and we're very pleased with what's going on there. But we haven't seen that yet on the Dedicated and Leasing side,” Sanchez said.
Customers are waiting to make decisions as they analyze the ongoing tariff announcements from the Trump administration.That uncertainty has carried over from Q1, when Ryder reported some hesitation from cross-border shippers on signing long-term contracts.
Sanchez said the passage of President Donald Trump’s tax bill, known as the “One Big Beautiful Bill Act,” clarified some of the hesitation from customers, but uncertainty is still tied to tariffs.
“[I] think what was really holding up decisions in supply chain has been the uncertainty because it's not all just tied to the freight market. And we're starting to see some of that loosen up now,” the CEO said. The prolonged freight downturn and economic uncertainty also continue to delay decisions from shippers, he added.
Ryder’s operating revenue went up 2% year over year at $2.6 billion in Q2, according to a securities filing. The growth primarily reflects contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS), CFO Cristina Gallo-Aquino said on the earnings call.
Ryder’s SCS business consists of a variety of logistics services for warehousing, transportation, import and export management. Its FMS segment provides customers with bundled leasing and maintenance services for a customer’s fleet, according to a 2024 annual report.
