''Our brokerage business experienced a decline in revenue as margins were pressured and resulted in fewer opportunities that met our targeted total gross margin. Although we are not pleased with the performance of our brokerage business in the second quarter, we are encouraged with the trends we have been experiencing in the third quarter, which have demonstrated improved revenue and margin when compared to the same period of the prior year. We are pleased with the growth we have seen in our intermodal service offering, which is now operating profitably. We are excited with the traction we have gained in this business and expect to continue to grow profitably.
''Our primary objective continues to be to operate with industry leading growth and profitability. Our average tractor count for the second quarter grew 5.1% on a year over year basis.
''The DOE national average diesel fuel price declined 2.1% in the second quarter, when compared to the same period last year. Our focus remains on continually improving fuel efficiency by effectively improving the driving behavior of our driving associates. We also continue to update our fleet with more fuel efficient post-2010 EPA emission compliant engines, install aerodynamic devices on our tractors, and equip our trailers with trailer blades, which lead to meaningful fuel efficiency improvements.
''Having a sufficient number of qualified driving associates continues to be a major concern as the driver market continues to tighten. Given these concerns, we have made a significant effort to position our driver development and training programs to source driving associates and develop them into Knight company drivers. We also feel our decentralized service center network, regional freight lanes, late-model tractor fleet, financial strength, competitive pay packages, and overall culture offer competitive advantages in recruiting and retaining qualified driving associates. As a result, our driver turnover has been trending favorably and is well below what we understand to be the industry average.
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