Latest news with #LTL
Yahoo
6 days ago
- Business
- Yahoo
Old Dominion's May update in line with prior Q2 guide
Less-than-truckload carrier Old Dominion Freight Line saw 'continued softness' in May as revenue per day fell 5.8% year over year. Lower volumes were again only partially offset by higher yields. The trend is a continuation from what was experienced in April and during the first quarter. Old Dominion (NASDAQ: ODFL) reported an 8.4% y/y decline in tonnage per day during May as shipments fell 6.8% and weight per shipment was down 1.9%. The carrier's April tonnage was off 8.8%, which followed a 6.3% decline in the first quarter. The monthly tonnage declines continue to moderate on a two-year-stacked comparison. May tonnage was down 6.9% (down 6.5% in April), which is an improvement from the low-double-digit declines recorded last year and into the first quarter. A prolonged freight downturn and a sagging industrial sector have weighed on LTL demand. The Purchasing Managers' Index (PMI) – a bellwether for manufacturing activity – remained slightly in contraction territory during May at 48.5. The index has been underwater in 29 of the past 31 months. The PMI dataset typically leads inflections in LTL volumes by approximately three months. The PMI new orders subindex – a proxy for future near-term activity – improved slightly but remained in decline at 47.6. The new export orders subindex continued to see the overhang of tariffs, falling into 'extreme contraction' at 40.1. The LTL industry continues to capture rate increases despite the demand malaise. Old Dominion said revenue per hundredweight, or yield, was up 3.2% y/y for the first two months of the second quarter (5.6% higher excluding fuel surcharges). The dip in average shipment weight modestly benefited the metric. Retail diesel fuel prices were off 8.5% y/y in May following an 11% decline in April. A sliding fuel surcharge scale makes higher diesel prices incrementally more accretive to LTL carrier margins but presents a headwind when fuel prices are falling. 'We believe that our market share has remained relatively consistent throughout this extended period of economic softness, despite the year-over-year decrease in our LTL volumes,' Old Dominion President and CEO Marty Freeman said in a Wednesday news release. 'Customers have continued to value our industry-leading service, which supports our ongoing yield management initiatives.' The company previously guided to second-quarter revenue of approximately $1.4 billion (a 7% y/y decline, or a 5% decline on a per-day basis) assuming April's volume and yield trends held throughout the quarter. That outlook included a 5% to 5.5% increase in yield (excluding fuel), which is in line with the actual result seen during the two months. A second-quarter operating ratio forecast calls for only 100 basis points of sequential improvement from the first quarter versus the normal change rate of 300 to 350 bps of improvement. That guide implies a 74.4% OR, which would be 250 bps worse y/y. The company normally sees an 8% step up in revenue sequentially in the second quarter but is only seeing a 3% increase so far this year. 'While the macroeconomic environment remains uncertain, we will continue to focus on executing on our long-term strategic plan,' Freeman added. 'Our service metrics and value proposition remain best in class, which we believe puts us in a unique position to win profitable market share and increase shareholder value over the long term.' Shares of ODFL were off 1.1% in early trading on Wednesday compared to the S&P 500, which was up 0.3%. More FreightWaves articles by Todd Maiden: Transportation pricing grows faster than capacity again in May Yellow Corp. to sell 4 terminals for $6.8M Proxy adviser backs activist's move to reshape Forward Air board The post Old Dominion's May update in line with prior Q2 guide appeared first on FreightWaves.
Yahoo
27-05-2025
- Business
- Yahoo
ANE Reported Adjusted Net Profit of RMB242 Million, Up 15.9% Year-on-Year, with Freight Volume, Revenue, and Profit All Rising
ANE Kicks Off 2025 Q1 with Strong Results: Adjusted Net Profit amounted to RMB242 Million, with New Peak of Profit Margin SHANGHAI, May 27, 2025 /PRNewswire/ -- ANE ( China's leading less-than-truckload (LTL) express freight operator, reported robust first-quarter results demonstrating synchronized growth across key metrics. The company delivered a 15.9% year-on-year increase in adjusted net profit to RMB242 million, with adjusted net profit margin expanding to 9.4% - a new peak that underscores its enhanced operational efficiency. During the reporting period, ANE also recorded: LTL freight volume of 3.05 million tons (+5.9% YoY) Revenue of RMB2.59 billion (+8.8% YoY) The performance validates ANE's strategic focus on "quality-driven scale growth" under its "Five Most" operational framework: most dense network coverage, most optimal cost, most superior service quality, most stable timelines, and most timely service response. Network Expansion and Product OptimizationANE's freight partner and agent network has reached 36,000 service outlets by quarter-end, maintaining its leadership position in China's express freight sector. The company strengthened competitiveness in the mini and light freight segment (<300kg), achieving: 18.4% YoY volume growth in sub-300kg shipments 17.3% reduction in freight weight per shipment to 75kg 50.6% decrease in number of complaints per 100k shipments Operational Efficiency Enhancement through Refined ManagementDigital transformation initiatives, along with investment in technologies, drove significant cost optimization and service quality improvement Transportation and sorting costs per ton reduced by RMB4/ton Average shipment time shortened by 10.7% Loss rate per 100k shipments plunged 68.2% Supply Chain Transformation and Market ConsolidationWith China's economy transitions into high-quality growth stage, the logistics sector is accelerating its agile transformation across supply chains. This shift is driven by the "small-batch, high-frequency; low-inventory, rapid-turnover" paradigm now reshaping commercial flows across retail, manufacturing, and commercial sectors – a structural change demanding hyper-responsive logistics networks favoring nationwide express freight networks gaining share in the LTL market. Industry data shows nationwide express freight providers gained 14% market share in 2024 while regional LTL and special line operators contracted. It's notable that the company also increased e-commerce-related shipments to 36% of total volume, consolidating partnerships with major platforms including TEMU, Douyin, 1688, and PDD. Sector Dynamics Favor Market LeadersThe express freight sector exhibits accelerating consolidation, with top 5 players commanding 82% of industry revenue and 65.5% of total shipments among top 10 competitors. ANE recently topped both China's LTL 50 and Express Freight 10 rankings for franchise operators. Industrial Securities maintains a "Buy" rating on ANE, citing its nationwide network density and operational efficiency as key differentiators. Analysts anticipate continued market share gains as industry upgrades drive supply chain modernization. View original content: SOURCE ANE Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Weather events ding Saia's operating ratio in Q1
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Although weather events tend to impact Saia's first quarter, this winter's disruptions 'proved more challenging in both magnitude and geographic location,' CEO Frederick Holzgrefe said during an April 25 earnings call. Winter weather in the Southern part of the country prompted closures and limited operations in some of the company's most dense and profitable regions, he said. The LTL carrier saw impacts in the Atlanta, Dallas and Houston markets in the first quarter, Holzgrefe said. Closures and limited terminal operations were more significant in Q1 this year compared to the same quarter last year. Saia estimated the weather impact affected its operating ratio by 25 to 75 basis points. Overall, the company's first-quarter operating ratio was 91.1%, which deteriorated by 670 basis points versus 84.4% in last year's Q1. Saia said revenue was also lower than expected due to macroeconomic conditions and adverse weather events. Still, Q1 revenue was up 4.3% to $787.6 million, which the carrier attributed to increased volumes in recently opened terminals. To keep up with demand and minimize impacts from the weather events, Saia ran extra linehaul miles and used purchased transportation post-storms. 'We also ran extra dock operations over some weekends to ensure customers' freight was minimally impacted by weather disruption,' CFO Matthew Batteh said on the call. Saia wasn't alone in seeing an effect from inclement weather. Estes Express Lines, TForce Freight and XPO also reported impacts to their operations in several states due to a blizzard in the Midwest around March and a snowstorm from Kansas to Delaware earlier this year. Recommended Reading Saia builds direct routes, reducing use of hub-and-spoke system Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
XPO sees minimal shipper conversion from LTL to TL
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. XPO reported it is not seeing 'a lot of direct conversion' from LTL to truckload, CEO Mario Harik said in an April 30 earnings call. Still, with truckload rates being lower 'there might be more combinations into truckload happening,' Harik said. But he noted that when truckload rates rise, the freight might come back to LTL. In the soft freight market, the logistics company's shipments per day were down 5.8% during Q1 compared with a year ago, but it generated volume growth in the mid to high single digits in its local channel, which executives named as a key focus for XPO. A softer economic environment and lower freight demand has led some freight to shift from LTL to truckload as shippers capitalize on historically low rates, but XPO executives said they're seeing less of the direct conversion trend, according to the company's earnings call. XPO is, however, seeing consolidation of shipments into truckload, which the carrier said has always happened. 'Companies have used [Transportation Management Systems] for decades now. And what TMSs do is that they look at if you don't have a service requirement and you can combine things into a truckload, you will combine it,' Harik said. LTL makes up a big portion of XPO's business, with North American LTL contributing $1.17 billion of its overall $1.95 billion in revenue in Q1. The carrier said it is the fourth largest LTL carrier by 2024 revenue metrics of $4.9 billion, according to an earnings presentation. Shippers turning away from LTL could hurt its business. But when asked about share loss to other modes, such as TL, Harik said he doesn't 'see any structural changes in how LTL freight is being moved across the country.' There has, however, been a decline in freight volumes and industrial demand over the past two to three years. "This is an opportunity potentially for the industry to see that volume come back when things turn the corner from an industrial production perspective," Harik told analysts. On the other hand, carriers such as ArcBest reported freight migrating over to truckload due to the excess capacity in the truckload space, according to the company's April 30 earnings call. 'From what we saw in 2024, we think that freight is going to eventually flow back to the LTL space when the market flips. But we've been encouraged by ultimately what our customers are looking for, and that's efficiency in supply chain,' ArcBest President Seth Runser said. Recommended Reading XPO operating income surges 24% in Q4 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
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Warp Launches 'Pickup Grace' to Help Brands Eliminate the Hidden Costs of Missed LTL Pickups
Los Angeles, CA, May 13, 2025 (GLOBE NEWSWIRE) -- Warp, the tech-driven middle-mile logistics leader, has launched Pickup Grace, a new service that replaces the rigid, unforgiving nature of inflexible LTL shipping with something radical – a little human grace. In the traditional LTL world, missed pickups are the shipper's problem. Missed pick-ups can lead to detention fees, impact overall shipping costs, and disrupt the overall supply chain, potentially leading to late deliveries, customer dissatisfaction, and further financial penalties. 'When a pickup fails with a traditional LTL carrier, you're stuck with fees, delays, and zero answers,' said Troy Lester, Co-Founder and Chief Revenue Officer at Warp. 'Pickup Grace is our way of saying: that's not good enough. We believe your team deserves a fair chance to succeed on the first try.' Warp's Pickup Grace changes that by building in the one thing traditional carriers don't have – flexibility. When one of Warp's contracted carrier partners arrives for a pickup, we don't just leave if a load isn't ready. We pause. We call. We wait. 30 minutes of Grace: Drivers wait for at least 30 minutes at pickup — not 10 minutes, not zero. Proactive Contact: If the freight isn't immediately ready, we call the facility contact listed on the BOL or order. A Second Chance: If more time is needed, we offer an additional grace period to get freight delivered — no auto-fails, no blame, no ghosting. Higher First-Attempt Success: By showing up with patience and process, Pickup Grace dramatically increases the odds of a successful first pickup. 'Pickup Grace is a direct response to how LTL carriers operate today, indifferent, transactional, and deadline-driven to a fault,' said Daniel Sokolovsky, CEO of Warp. 'We don't just show up. We make sure the pickup actually happens, even if that means we wait.' Warp built Pickup Grace to reflect how modern supply chains work, dynamic, fast-paced, and too complex to tolerate rigid service windows and silent failures. This service is now standard for all LTL shipments booked through Warp, at no additional cost. Warp has dedicated time to ensuring each partner in their 10,000+ carrier network is aware of and onboard with the new policy. With a nationwide network of facilities, a high-touch carrier network, and real-time tracking infrastructure, Warp continues to raise the standard for what modern freight service should feel like. To experience Pickup Grace or book a shipment with Warp, visit About WarpWarp is a technology-enabled leader in middle-mile logistics, focused on creating efficient, scalable solutions for high-density, high-demand supply chains. By connecting shippers, carriers, and warehouses through a unified platform, Warp delivers innovative freight solutions that prioritize visibility, sustainability, and control. From real-time tracking to cross-dock coordination and dynamic routing, Warp helps brands take full command of their logistics performance across the U.S., Canada, and Mexico. CONTACT: Stephanie Levinson Warp press@
