LTL vs. Truckload: Who emerged stronger from Q3 earnings reports?
FreightWaves Finance Editor Todd Maiden breaks down Q3 earnings. Capacity drawdown continues, but demand needs to catch up. LTL carriers showed demand improvement and managed costs, while truckload saw profit growth lag. What’s your take on the outlook? LTL carriers outperformed expectations on both tonnage and pricing in the third quarter, while truckload operators faced […] The post LTL vs.…
In Q3 earnings reports, LTL carriers demonstrated positive growth while truckload operators grappled with mounting cost pressures, according to FreightWaves finance editor Todd Maiden. Old Dominion Freight Line led LTL carriers with its first year-over-year tonnage increase in two years and revenue per shipment outpacing cost per shipment by 440 basis points.
Old Dominion's operating ratio improved to 71.5, with XPO and Saia both reporting ratios in the 80s range. All three carriers predicted fourth-quarter operating ratio deterioration due to seasonality. Diesel prices surged 48% year-over-year, impacting both LTL and truckload stocks, which fell about 30% from their June highs. LTL carriers outperformed expectations on both tonnage and pricing, while truckload operators faced cost challenges despite revenue growth.
Knight-Swift stood out among truckload carriers, reporting 700 basis points of operating ratio improvement and a positive revenue-to-cost spread, with expectations of double-digit rate increases.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
