Tonnage fell in May for multiple carriers in Q2, according to initial reports from Old Dominion Freight Line, Saia and XPO, as sluggish demand persisted in the market.
LTL tonnage per day and shipments for the firms all declined compared to a year ago. But the severity of the drops varied, with Old Dominion hit the hardest and Saia receding the least among the group.
LTL firms report daily tonnage declines
In contrast, ArcBest’s asset-based segment reported a 6% year-over-year increase in total tons per day for the month. That came as daily shipments were up 7% for May, “reflecting success in capturing new core business,” the company said in a securities filing last week.
As part of the challenging market, ArcBest, Old Dominion and XPO experienced less heavier loads on average, but Saia bucked that trend, growing LTL weight per shipment by 3% YOY in May.
Manufacturing woes as well as carriers’ customer makeups are affecting carriers' tonnage and weight changes.
A survey of supply executives from the Institute for Supply Management suggested manufacturing grew in January and February after two years' worth of contraction. But the sector then retreated back into contraction territory for March through May.
Market uncertainty amid tariff policy is also present, adding sluggishness to lackluster demand, noted AFS Logistics in April. Truckload “typically feels the impact of macroeconomic forces and trade policy first, then LTL has more of a delayed reaction,” AFS Logistics VP of Freight Services Aaron LaGanke said when the firm released its forward-looking TD Cowen/AFS Freight Index.
“For now, LTL carriers are effectively navigating a low-demand environment with a focus on profitable lanes, contractual relationships and reliable freight, rather than chasing volume with pricing concessions,” LaGanke said.
