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Top Trucking LTLs See Q3 Revenue Surge on Fuel, Tighter Capacity, Higher Rates

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Top Trucking LTLs See Q3 Revenue Surge on Fuel, Tighter Capacity, Higher Rates

The less-than-truckload (LTL) market further tightened in the third quarter, as more carriers with spare terminal capacity picked up freight that truckload carriers can no longer move cheaply or reliably.

Revenue growth for LTL’s top players looked strong across the board in the third quarter, with XPO’s North American LTL revenue increasing 17.4 percent to $1.47 billion, while Old Dominion’s revenue jumped 13.1 percent to $1.59 billion. Revenue at Saia soared 17 percent to $982.5 million.

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FedEx Freight had the slowest revenue growth of the bunch at 8.1 percent to $2.44 billion as it navigated its first full quarter as an independent company amid a focus on customer retention. The trucking company split off from FedEx on June 1.

Like its counterparts across parcel and rail, elevated fuel costs were a significant contributor to top-line numbers.

Fuel widened the gap between headline and base revenue per hundredweight at the major carriers, with headline accounting for fuel and base excluding it. FedEx Freight rose 8.8 percent on a headline basis, against only 0.4 percent for base revenue, while Old Dominion showed a similar gap, at 13.3 percent against 5.1 percent. XPO’s headline numbers rose 12 percent, compared to 3.6 percent without fuel. And Saia rose 7.4 percent, against a 2.2 percent base decline.

A major index that monitors trucking freight rates across LTL and truckload backs up the acceleration in revenue.


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