Dozens of newer Saia terminals have moved past challenging quarters to hit an average operating ratio in the mid-90s, the carrier reported last week.
The LTL carrier invested heavily in expanding its network to a national network last year — despite a freight market that’s been negative for three years, executives said on an earnings call last week.
That operating ratio is an improvement to previous quarters where newly added terminals were operating at breakeven thresholds, the company noted on previous earnings calls.
The carrier operates 213 terminals, and facilities that opened within the last three years are showing meaningful results.
“Our customer-first focus is yielding tangible results, especially in our new markets, as our facilities open for less than three years, continue to lead the charge in volume and revenue growth, performing in line with seasonality in these markets,” President and CEO Frederick “Fritz” Holzgrefe said on the call.
Those newly added facilities’ shipments per workday increased 4% in Q2 versus Q1, the company reported. That compares to legacy facilities, which were up 2% sequentially, Holzgrefe said.
“These results reinforce our commitment to expand the geography and nationwide footprint, which increasingly allows us to compete on a more even playing field with peers,” Holzgrefe said.
Other LTL players have been expanding their networks, getting a significant boost from Yellow Corp.’s bankruptcy and property sales and lease takeovers.
Knight-Swift Transportation Holdings, the truckload giant that has expanded into LTL in recent years, gained an edge in the West Coast market last year through M&A as it seeks to build a national footprint.
