Dive Brief:
- Heavier freight helped ArcBest increase profitability in Q3, given a 9.6% increase in tonnage per day compared to a year ago in its asset-based segment, the company reported Wednesday.
- Improvement in its weight per shipment also reflected a continuing change in its freight profile, the company said in an earnings release. The company saw encouraging activity in building materials, automotive, food service and 3PL, CEO and President Seth Runser told investors on a call.
- “As we look forward to 2027, we're not assuming a significant freight recovery, but we're seeing some early signs,” Runser said, “that are encouraging.”
Dive Insight:
The tonnage gains came amid a 3% decline in Q3 in shipments, but October results are encouraging, company leaders said.
Asset-based daily tonnage increased 15% last month compared to a year ago, driven by a 14% increase in weight per shipment in a 1% increase in shipments per day, the company noted in its earnings release.
“The increases in weight per shipment we have seen this year reflect the expansion of our dynamic quote pool and the intentional approach to freight selection,” CFO Matt Beasley said on the call.
Through that expanded quote capability, the company is being more selective of its freight in real-time, Runser said.
Meanwhile, its asset-based operating income increased from $70.2 million in Q3 2025 to $75.6 million in Q3 2026, the company reported.
“Contract renewals were another highlight of the quarter, averaging a 5.1% increase,” Runser said, adding how customer satisfaction gains trust with the company, which turns into increased volume.
ArcBest’s Q3 tonnage stands out compared to peers. While others may have reported year-over-year increases in North America LTL shipments for the quarter, such as Saia, TFI International and XPO, only Saia maintained a similar tonnage increase.
For tonnage, Saia reported an 8.9% increase, TFI notched a nearly 1% increase and XPO posted a 5% increase, according to earnings releases.
