ArcBest experiences growth while XPO, ODFL, and Saia witness decline in LTL sector

In August of 2025, less-than-truckload carriers experienced a decline in shipment volumes, reflecting a broader economic softness. Leading carriers such as Old Dominion Freight Line, XPO, and Saia saw decreases in tonnage, with ArcBest being the only exception with a modest increase. ArcBest attributed its 5% shipment growth per day to the addition of new core LTL business, expecting to generate around $25 million in net proceeds from real estate sales during the third quarter.

ArcBest faced challenges in a difficult market as it had to incur higher cartage expenses to secure new customers. This increase in cartage expenses was due to the greater reliance on outside resources for cartage following recent new business wins, a situation that is expected to undergo improvement over time with progress in hiring in affected markets.

Moreover, the company is strategizing to enhance profitability by implementing account- and lane-level adjustments based on a recent pricing review. Economic pressures were evident in the decreased weight per shipment reported by carriers, except for Saia, which showed a 1% increase. Both ArcBest and Old Dominion Freight Line highlighted softness in manufacturing and housing markets as key factors affecting demand.

ArcBest mentioned that its profit margins were being squeezed due to lower-than-anticipated weight per shipment resulting from ongoing macroeconomic pressures, including the continued softness in manufacturing and housing activities. The carrier’s SEC filing underscored these challenges by stating that the variance from prior expectations for the third quarter was linked to these economic factors.

Despite the overall decline in shipment volumes among LTL carriers in August 2025, ArcBest’s growth stands out as a positive outlier in the context of a challenging economic landscape. With a focus on developing core LTL business and navigating market challenges effectively, ArcBest’s strategic approach to overcoming obstacles and driving growth serves as a noteworthy example within the industry.

In conclusion, the recent trends and challenges faced by LTL carriers highlight the importance of adapting to changing economic conditions and implementing effective strategies to drive growth and profitability in a competitive market environment. As key players in the transportation industry, LTL carriers like ArcBest continue to demonstrate resilience and innovation in addressing market challenges and leveraging opportunities for sustainable success.