Ryder System's earnings were driven by "positive momentum" in commercial freight shipments resulting in an greater need for the company's rental trucks, CEO Gregory Swienton told CNBC Tuesday.
"We had another strong quarter to report" this morning, he said. "Things are very good."
It all comes down to commercial freight movement, Swienton said. "Thus far there is still more freight to move, there’s demand, there’s supply and demand imbalances. We’re making new sales. In the short term, transactional activity is still pretty high."
Some of the companies renting Ryder's trucks include CVS, Coca-Cola and General Motors . The increase in shipments is a "good sign for the future" for his company as well as for the economy.
The need for trucks is so great Swienton said the company can pass along price increases to its customers, particularly the cost of installing Environmental Protection Agency-mandated engines for heavy equipment.
"That's considerably more expensive and we have to pass that [cost] along to customers as well," Swienton said.