Saia’s tonnage growth steps higher in August as comps ease

Less-than-truckload carrier Saia reported an 8.7% year-over-year increase in tonnage in August, as daily shipments rose 1.1% and weight per shipment increased 7.5%. The company's metrics improved slightly from July's year-over-year growth due to easier prior-year comparisons. However, its two-year-stacked tonnage growth has slowed for the second consecutive month, increasing by 6.5% in August and 8.7% in July.

Saia introduced a 7.1% general rate increase on July 6, which may cause near-term volatility, and expects easier prior-year comparisons throughout the rest of the year. The carrier does not provide revenue-based metrics in its intraquarter updates, but previously reported that revenue per shipment increased by 4% over the second quarter.

Saia's recent general rate increase was 120 basis points higher, three months earlier than last year's rate bump. The company expects a slight year-over-year margin deterioration in the third quarter, with an operating ratio of 87.9%, 30 basis points worse compared to the previous quarter.