ArcBest LTL Tonnage Rises 10% on Heavier Shipments

ArcBest's asset-based operation reported a 10% year-over-year increase in third-quarter tonnage even though shipment count declined 3%. The difference came from a 13% jump in weight per shipment, according to FreightWaves. Revenue at the unit, which includes ABF Freight, increased 10% to $799 million, while consolidated company revenue rose 15% to $1.21 billion.

The heavier freight mix also lifted revenue per shipment by 14%. Revenue per hundredweight, including fuel surcharges, increased 1%, while yield excluding fuel declined by a low-single-digit percentage. Contractual rate increases averaged 5.1%. ArcBest's adjusted operating ratio improved to 90.4%, 210 basis points better than a year earlier. A lower operating ratio generally indicates that less revenue is being consumed by operating expense.

October results extended the pattern. Asset-based revenue per day was up 20% from a year earlier as tonnage increased 15% and yield rose 4%. Shipments gained only 1%, while revenue per shipment climbed 18%. Management expects the fourth-quarter operating ratio to deteriorate less than its normal seasonal pattern and indicated a midpoint near 91.4%. Those figures are company guidance, not a forecast for the entire LTL sector.

For drivers and terminals, heavier average shipments can change dock planning, trailer loading, axle-weight control and handling time even when shipment counts barely move. Fleets should watch weight distribution and securement rather than treating higher tonnage as only a revenue signal. Shippers should provide accurate dimensions and weights so carriers can price and plan capacity correctly. ArcBest's quarter supports a firmer LTL outlook, but it also shows that freight mix—not simply the number of bills—can determine operating performance.