Latest news with #truckload
Yahoo
3 days ago
- Business
- Yahoo
Truckload's diminishing distance
Chart of the Week: Outbound Average Length of Haul – USA SONAR: The average length of haul for truckload tenders in the U.S. fell to 533 miles last week—down approximately 70 miles, or 11%, from the same time last year, according to SONAR's tender data. While the Outbound Average Length of Haul Index (OALOHA) has dipped lower in the past, it has only reached this level during brief periods. Weak overall demand has kept the truckload market from meaningfully rebounding, but the loss of longer-haul freight is compounding that stagnation. Is there any reason to believe this trend will reverse in 2025? The primary driver behind the declining average is the shift of long-haul freight to intermodal, though demand for regional truckload moves has also softened. Freight moving less than 100 miles, however, has remained relatively resilient. Just in case Companies began increasing average lead times on orders in early 2024 as Red Sea attacks disrupted international shipping. While this didn't reach COVID-era levels of service breakdown, the disruptions were enough to cause some inconsistency. As a result, many goods arrived in the U.S. with extra buffer time for domestic movement. Inventory levels have been climbing unevenly over the past year, according to the Logistics Managers' Index (LMI). This follows a strong period of destocking in 2023, driven by collapsing goods demand and over-ordering — a pattern that remains fresh in the minds of importers and may continue to suppress aggressive restocking in the near term. Tariffs and the renewed trade war have amplified the pull-forward effect this year, reinforcing the shift to earlier, bulkier ordering cycles. Intermodal has benefited significantly from longer lead times and accelerated shipping schedules. Last week, international loaded container volumes moving by rail were up 7% year-over-year, while domestic intermodal volumes remained flat. Intermodal is inherently more cost-effective, especially for long-haul moves across the country. With more freight landing at large ports—those best equipped with major rail terminals—the shift to rail has intensified. Notably, intermodal is replacing not just any truckload freight, but some of the most impactful long-haul runs. For example, a Los Angeles to Chicago route takes a truck about four days—capacity that intermodal is increasingly absorbing. Deals getting done A breakthrough trade deal with Japan last week, which includes a 15% tariff rate, suggests the beginnings of trade de-escalation. A significant trade partner — the agreement is a positive signal that some fog is lifting from the uncertain trade environment that defined the first half of the year. At the same time, inventory carrying costs have surged. The LMI's inventory cost component rose above 80 in June — its highest level since early 2022 — making it harder for companies to justify holding excess goods. A calmer trade climate, easing geopolitical risks, and rising holding costs could push shippers back toward just-in-time inventory strategies later this year. While economists and the Fed are forecasting a sluggish finish to 2025, that may not matter much for truckload. With capacity still showing signs of tightening and long-haul demand near a floor, even modest demand shifts could cause a meaningful market reversal. If shippers pivot back to leaner inventories and faster domestic cycles, long-haul trucking could quickly return to relevance. About the Chart of the Week The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Truckload's diminishing distance appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Saia beginning to shake off growing pains
The 2025 first quarter could be the operational nadir for less-than-truckload carrier Saia. The company reported sequential improvement in second-quarter financial results on Friday as it appears to have a better handle on costs following a significant expansion to its terminal footprint. Saia (NASDAQ: SAIA) had 21 more facilities in the second quarter than it did a year ago. The added costs weighed on results as the carrier is still in the process of matching head count to volumes. The Johns Creek, Georgia-based company reported second-quarter earnings per share of $2.67 before the market opened on Friday. The result was 28 cents ahead of the consensus estimate and 81 cents better than the first quarter. However, on a year-over-year comparison, EPS was down $1.16, with the bulk of the deterioration tied to startup costs at new locations. Higher interest expense (debt used to fund the terminal purchases pushed net debt $125 million higher y/y) and a slightly higher tax rate combined for a 10-drag on the quarter. Tonnage comps get tougher after 22-month run Saia reported second-quarter revenue of $817 million, a less than 1% y/y decline but $9 million ahead of analysts' expectations. Tonnage increased 1% y/y, the result of a 3% decline shipments, which was offset by a 4% increase in weight per shipment. On a y/y comparison, tonnage was 4.4% higher in April, down 0.4% in May and off 0.8% in June. Tonnage is flat y/y so far in July. The y/y comparisons are now more formidable for Saia following 22 consecutive months of gains, which began just ahead of Yellow Corp.'s July 2023 collapse. Saia faces positive y/y comps ranging from mid-single- to low-double-digits for the rest of the year. The remaining third-quarter comps include y/y increases of 8% and 10% in August and September, respectively. The carrier noted an unfavorable sequential mix shift toward lighter, retail freight at national accounts. (Weight per shipment was down 2% from the first quarter.) Also, it had less freight originating in Los Angeles, which pushed length of haul 1% lower sequentially. Revenue per hundredweight, or yield, was down 2% y/y (1% lower excluding fuel surcharges). The y/y increase in shipment weights was a drag on the yield metric and only partially offset by a 1% y/y increase in length of haul. The carrier was also up against a plus-9% yield comp from a year ago. Contacts renewed 5.1% higher on average in the quarter, a step down from a 6.1% average in the first quarter. Contract renewals, too, are comping mid- to high-single-digit increases from a year ago. Operating ratio recovers from post-Covid-worst Q1/25 Saia reported a second-quarter operating ratio (inverse of operating margin) of 87.8%, which was 450 basis points worse y/y, but 330 bps better than the first quarter (the carrier's worst operating performance since the pandemic). The result was also 120 bps better than management's guidance. Cost per shipment was up 7.7% but revenue per shipment increased just 1.8%, a 590-bp negative spread. Cost per shipment was down 4% from the first quarter. Terminals opened less than three years operated at a mid-90s OR during the second quarter, which was an improvement from breakeven results in the first quarter. Most of the newer locations reported higher efficiency metrics. The new locations have also helped Saia reduce the number of shipment touches across the network. Salaries, wages and benefits expenses were 260 bps higher y/y as a percentage of revenue. The company implemented an annual wages-and-benefits increase of 4.1% in July 2024 but hasn't decided if an increase is in store for 2025. Head count was reduced 4.2% from March to June, which should begin to take some pressure off the expense line. Depreciation and amortization expense was up 130 bps y/y due to recent terminal investments. Purchased transportation expense declined 40 bps y/y. The company normally sees 100 to 200 bps of OR degradation from the second to third quarter. However, it hopes recent cost actions will allow it to minimize the degradation to just 100 bps this year. The OR guidance could be negatively impacted by roughly 75 bps if it decides to implement an annual compensation increase similar to last year. The loose guide implies an 88.8% OR in the third quarter, which would be 370 bps worse y/y. The company's long-term OR goal remains at sub-80%. In aggregate, Saia has inked deals to buy 31 terminals from defunct Yellow (OTC: YELLQ). Saia now operates a full-scale, national network of 213 terminals. Shares of Saia were up 5.6% at 2:46 p.m. EDT on Friday compared to the S&P 500, which was up 0.5%. More FreightWaves articles by Todd Maiden: Heartland Express books another loss in Q2 Knight-Swift's belt tightening offsets soft demand FedEx Freight gives shippers 'more time' to adjust to new LTL class rules The post Saia beginning to shake off growing pains appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
First look: Covenant Logistics Group Q2 earnings
Covenant Logistics Group Inc. reported $302.85 million in total revenue during the second quarter, a 5% year-over-year increase from the same period in 2024. Freight revenue rose 7.8% year-over-year in the second-quarter to $276.5 million, while truckload operations decreased 1% to $199.6 million. Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of 45 cents in the quarter, compared to 52 cents in the same year-ago quarter. 'The highlight of our second quarter's results was year-over-year freight revenue growth of 7.8% to $276.5 million, an all-time high for any quarter in the history of our enterprise,' Covenant Chairman and CEO David R. Parker said in a news release. 'This milestone was achieved despite an operating environment that remained competitive throughout the quarter across many Expedited, Managed Freight, and non-specialized equipment Dedicated accounts.' Freight revenue per tractor per week decreased 3.2% year-over-year to $5,543. Revenue in the expedited truckload segment fell 10% to $97.3 million, while dedicated segment revenue rose 9% to $102.3 million. Covenant's managed freight segment saw revenue of $77.5 million in the second quarter, an increase of 28% from the same time last year. The warehousing segment had revenue of $25.5 million during the quarter, a 1% year-over-year gain. During the quarter, Covenant repurchased 1.6 million shares of outstanding common stock at an average price of $22.69 per share, amounting to $35.2 million of the company's $50 million stock repurchase program. 'Our 49% equity method investment with Transport Enterprise Leasing contributed pre-tax net income of $4.3 million, or $0.12 per share, roughly in line with the prior year quarter's results of $4.1 million,' Parker said. Covenant will hold a conference call to discuss results with analysts at 10 a.m. Thursday. Covenant Logistics GroupQ2/25Q2/24Y/Y% ChangeTotal revenueTruckload combined:RevenueFreight revenue (ex fuel)Revenue per total mileRevenue per tractor per weekManaged freight:RevenueAdjusted operating incomeExpedited freight:Revenue (ex fuel)Adjusted operating incomeAdjusted earnings per share The post First look: Covenant Logistics Group Q2 earnings appeared first on FreightWaves. Effettua l'accesso per consultare il tuo portafoglio
Yahoo
20-07-2025
- Business
- Yahoo
Regional disparity grows as truckload capacity tightens
Chart of the Week: Regional Rejection Indexes – Southeast, Midwest, Northeast, West Coast, Southwest SONAR: Truckload tender rejection rates have diverged significantly over the past year, reflecting growing regional imbalances in the U.S. trucking market. In the Southeast, rejection rates have averaged close to 10% over the past two months, while West Coast rates have remained around 3.5%. This widening gap signals increasing network and pricing inefficiencies and suggests that the truckload market is less stable than it appears on the surface. At this time last year, the gap between the two regions was much narrower: the Southeast averaged around 6%, while the West Coast sat only slightly lower at 5.3%. They're not alone—other regions have also drifted apart. During the winter, the Midwest saw the most disruption, with rejection rates exceeding 12% for the first time in two years, while the West Coast remained under 8%. For context, rejection rates above 10% are typically problematic for shippers, often triggering rapid rate inflation. These spikes are usually associated with holiday periods like Christmas and the Fourth of July. The increasing dispersion in regional rejection rates points to a less balanced freight environment. Carrier networks constantly struggle to keep trucks moving toward areas where equipment is needed. When demand shifts—as it has over the past year—networks are slow to recalibrate. Not so oversupplied Following the pandemic, truckload capacity was so abundant that regional imbalances were largely absorbed. Trucks were readily available, often waiting on the sidelines. That's no longer the case. Since late 2022, the market has been shedding capacity. According to FMCSA data, more than 48,000 registered operators have exited the market. Net revocations have accelerated since last October, now averaging nearly 200 more per week year-over-year. Still, the increase in total rejection rates has remained modest—hovering around 6% in recent months—insufficient to spark a significant capacity crunch or a market 'flip.' Rates are also driving regional inequity One contributor to the growing disparity in rejection rates is the diverging trend in contract rates, particularly out of eastern markets. According to SONAR's invoice data, the average contract rate per mile from Los Angeles to Chicago has risen about 3% over the past two years. In contrast, the rate from Atlanta to Chicago has declined nearly 7%. While these are just two lanes among many, they illustrate a broader trend: outbound Southern California rates have shown more upward pressure than those in the East. Length of haul also plays a role. Freight originating in Atlanta averages about 500 miles, while Los Angeles loads average more than 800 miles. This difference incentivizes carriers to prioritize longer West Coast hauls. Rejection rates out of Atlanta — the Southeast's largest market — have spiked in recent months. Although this hasn't yet driven up contract rates, it has had a strong effect on the spot market. Spot rates in the Atlanta-to-Chicago lane are up 41% since mid-April. If sustained, this could eventually lead to higher contract rates. In the meantime, it highlights how fragile the spot market environment is. The Bottom Line The freight market remains relatively soft, with little upward movement in long-term contract rates. But under the surface, conditions are shifting. The fact that spot rates have surged more than 40% in a well-traveled lane — even in a down market — demonstrates just how vulnerable the truckload environment has become. About the Chart of the Week The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Regional disparity grows as truckload capacity tightens appeared first on FreightWaves.
Yahoo
17-07-2025
- Automotive
- Yahoo
A look under the hood: Breaking down two real Shared Truckloads
Shippers often face a false choice between the speed and security of truckload and the lower cost of LTL. Shared Truckload (STL) offers a third option, and it is gaining traction as shippers look for ways to reduce costs without sacrificing reliability. Flock Freight's FlockDirect® service enables STL at scale by pooling multiple shipments from different companies onto one truck—without terminal stops or transloading. With Shared Truckload, shippers pay only for the space they need and carriers avoid running partially empty. This naturally leads to fewer trucks on the road and fewer carbon emissions. It's a clear alignment of operational efficiency, financial gain and environmental benefit. Flock has staked its claim as the largest Shared Truckload brokerage in the U.S. by building the technology that makes this model work at scale. Its approach centers on automating the complex process of matching shipments into efficient Shared Truckloads. What used to be a manual, messy effort now happens in seconds. Rethinking capacity: supply-side optimization For carriers, the value of STL isn't just in the initial route, it's in how remaining trailer space is managed across the haul. Flock's STL AddOnsTM product enables carriers to easily top off trucks with compatible freight during a Flock route, turning underutilized space into revenue. This shift in capacity strategy—moving from spot-matching to in-transit optimization—is where STL's potential really opens up. STL AddOns isn't just about efficiency, it also reduces friction. Carriers get clear instructions, smooth transfers and fewer service disruptions for multi-stop loads, making the STL experience more predictable and profitable. Scaling STL with AI What enables this level of optimization is Flock's AI-powered pooling engine. It doesn't just match loads, it evaluates trillions of possible combinations based on origin, destination, timing, equipment, service levels and more. The result is a living, growing network that gets more efficient with every new shipment. In contrast, manual STL efforts often involve matching in spreadsheets and with limited freight density, making service less consistent and savings hard to count on. With slow quoting, unpredictable ETAs and too many touchpoints, it's clear why 96% of shippers say they're unhappy with their current multi-stop solutions. Flock's tech-enabled model solves these challenges by automating what human brokers can't reasonably scale, especially when precision and timing are critical. STL in action: Two route examples Let's break down two real STL routes to see how this works on the ground. Pool Example 1: Southern California → Georgia → Florida Three Flock shippers—each operating independently—were pooled into a single, optimized Shared Truckload. The carrier initially booked the SoCal-to-Georgia leg, then received alerts about two AddOn load opportunities that aligned with the route and delivery windows. By combining all three shipments: The trailer ran at 100% capacity All shippers saved over 45% compared to the truckload rate The carrier earned 33.6% more than the truckload rate Because FlockDirect® shipments are load-to-ride, each shipment was loaded in a first-in, last-out sequence. Freight stayed on the truck from pickup to delivery, receiving truckload-level service. Pool Example 2: New Jersey → Virginia → Colorado → Utah This load began with two shipments pooled into a Shared Truckload. When a third compatible shipment was booked by another Flock shipper, STL AddOns technology notified the carrier in real time, adding a third shipment to the STL. The STL AddOn significantly increased carrier earnings while every shipper still saved on costs. By combining these three shipments: The trailer ran 100% utilized Carrier earnings rose 39.4% above TL rates Shippers still saw 20–50% cost savings What made this example stand out: All three deliveries had appointment windows, which the AI accounted for during optimization. The result was a time-sensitive route delivered on schedule—without sacrificing efficiency or profitability. Shared Truckload's growing role in freight strategy More shippers are rethinking traditional multi-stop and partial-load strategies. They want better service, simpler planning, and lower emissions. Tech-enabled STL offers a middle ground that's increasingly hard to ignore. Shippers avoid the unpredictability of LTL while still controlling costs. Carriers gain access to a new, unique way to maximize revenue per mile. The planet wins too, as fewer trucks run more fully and efficiently. Shared Truckload is becoming a key lever in modern freight planning—especially when it's powered by tech that enables the model to rapidly scale. As the industry continues to chase smarter, leaner logistics, mode options like STL will move from innovative to indispensable. Click here to learn more about Flock Freight. The post A look under the hood: Breaking down two real Shared Truckloads appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
