Truck volume up, a capacity squeeze but profits are down - WHY?

The American Trucking Association said Q3 volume increased 8.2% year over year. That, coincidentally, is how much JBHunt's revenue increased (excluding fuel surcharges).  Demand is high, drivers are in demand, and prices are going up…so why did Hunt have a decline in profit?  Dedicated trucking, which makes up 24% of JB Hunt’s revenue, is normally a far higher contributor to profit.  In the last quarter its profit was 26% of the total JBHunt operating earnings.  The total dedicated contribution was down a stout 18% from this time last year.  Intermodal revenue was up 6% – and that includes a 2% increase in price per load – but profit was down 7%.  Why?  Management trotted out a list of reasons:  driver wages, the hurricanes, the cost to attract and retain drivers, as well as rail congestion.  The one reason that stood out to me was "the timing between increasing driver wages and recovery through customer contracts.”  In short – shippers expect to pay much more.  It is all “timing” – shippers, your time is about to come!