Knight has strong second quarter as capacity tightens.
They recently formed Kold Trans, LLC to hire an executive (Jon Isaacson, formerly of Central Refrigerated) that it believes will be a solid addition to the company. Kold Trans is a full-truckload temperature-controlled transportation company that will be marketed and operated separately from Knight Refrigerated. While Kold Trans has the potential to cannibalize Knight’s existing reefer business, management feels this is unlikely (at least near term) as the customer base is large enough to support both businesses. In addition, the tight reefer market suggests an abundance of opportunities exist in the near-term. The first group of Kold Trans drivers is in orientation and the company is taking delivery of new tractors. Kold Trans will operate ~50 tractors initially, but this is expected to grow to 150-200 units over the next 12-18 months.