Dive Brief:
- Tonnage in August declined year over year for Old Dominion Freight Line, XPO and Saia while ArcBest reported a 2% increase in its asset-based operating segment.
- Shipments per day similarly declined across most of those carriers. Companies also noted declines in weight per shipment, except for Saia posting an incremental 0.1% increase YoY.
- “Old Dominion’s revenue results for August reflect the ongoing softness in the domestic economy," CEO and President Kevin “Marty” Freeman said in a mid-quarter update.
Several LTL firms see volume declines
Dive Insight:
Carriers reported some green shoots amid a sluggish freight environment mired by consumer hesitancy and mixed levels of demand.
Those positive projections were interspersed in mid-Q3 updates compared to the prior year:
- Old Dominion reported a 4.7% increase in billed revenue per hundredweight.
- ArcBest had a 1% increase in revenue per day.
- Saia posted a 1% increase in weight per shipment.
ArcBest will get some additional help with its margins: It’s slated to generate about $25 million in net proceeds from real estate sales in Q3, the company said in a securities filing.
In explaining the weight-per-shipment decline, the transportation services provider cited macroeconomic pressures that include “continued softness in manufacturing and housing activity.” Other factors involved relying on outside freight haulers as hiring ramps up in new markets.
Old Dominion echoed those economic concerns but stressed it’s positioned to win freight in the long-term, Freeman said.
“While our volumes declined on a year-over-year basis, the improvement in our revenue per hundredweight demonstrates the value that our customers realize from our consistent commitment to superior service,” he said.
