LTL carriers reported mixed changes in August shipping compared to a year ago.
ArcBest’s asset-based segment, featuring ABF Freight, prelimarily reported a -4% change in shipments per day, and Old Dominion Freight Line also reported a downward trend at -2.4%.
In contrast, Saia reported a 1.1% increase, and XPO listed a 5.7% increase, based on preliminary mid-quarter updates.
XPO’s shipment breakout may be due to the Greenwich, Connecticut-based carrier investing in its local sales force and going after small- and medium-sized business, which can be profitable when done right, LTL consultant Scooter Sayers told Trucking Dive.
“They're going after that business,” Sayers said. “It's number one a growth engine, and number two, I think it's a counterbalance to the truckload type freight that is likely filtering into their network.”
The differences in volume data across carriers may further be explained by how willing these LTLs are to accept spillover freight from truckload, Sayers noted on a LinkedIn post. Sayers provides consulting through his firm, Sayers Logistics, and is the co-founder of The LTL Digest.
Tighter trucking capacity has driven up rates, and that can push shippers to move loads into less-than-truckload. But LTL carriers may decline freight from shippers who try to move their freight uniformly from truckload carriers to LTL, Sayers noted in a recent report.
While volumes are still relatively soft overall, tonnage per day meanwhile grew significantly in August for ArcBest and Saia compared to a year ago. Old Dominion deviated from the tonnage growth trend, posting a year-over-year decline for the month.
Despite that underperformance, Old Dominion was able to secure a 12.4% increase in its revenue per day for the month.
President and CEO Kevin “Marty” Freeman said in a mid-quarter announcement that the carrier “produced solid revenue growth for July and August, with underlying demand trends remaining relatively consistent as the quarter has progressed.”
