Freightmaster1
TB Legend
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http://seekingalpha.com/article/362...fea:55792e9bd36853be8cd4e064e1b8d674&uprof=51
ABF Freight's third quarter revenue declined due to lower tonnage levels versus a strong growth period last year, and the impact of lower fuel surcharge revenue associated with declining diesel fuel prices. Despite the weakness associated with the slowing economic environment, ABF Freight focus on a high level of customer service and solid pricing to improve its third quarter operating results versus last year.
ABF Freight worked toward increased freight handling efficiencies, and reducing the need for outside operational resources, through better utilization of company drivers and equipment.
During last year's third quarter, tonnage growth in ABF Freight's total business increased over 6% and weight in ABF core LTL business grew at a double-digit rate. In this year’s third quarter, ABF Freight increased the number of shipments it handled, but tonnage totals were below 2014 in each month of the quarter. Despite a decline in weight per shipment, ABF Freight was able to increase operating income by over 7% during a period of reduced revenue.
As I previously mentioned, ABF Freight showed continued improvement in important dock handling metrics that reflect the operational focus being placed on labor efficiency. Handled bills per dock hour improved 2.9% over last year. We continue to focus on improving our local pickup and delivery operations. Despite a moderate decline in sequential stops for city driver, shipments for customer stops showed improvement on both a year-over-year and a sequential basis reflecting greater efficiencies when ABF Freight city drivers are at our customers' facilities.
Our focus on better loading to outbound line haul trailers is reflected in the modest improvement of system load average figures.
ABF Freight succeeded in controlling city tractor and trailer rentals in its use of cartage. In addition, the need for outside rail and truckload services to supplement ABF line haul operations was reduced and we did a better job of managing empty equipment cost.
During the third quarter, ABF Freight was successful in maintaining price discipline and achieving increased rates. Despite the effects of significantly lower fuel surcharges versus last year, ABF Freight's total third quarter revenue per hundredweight increased slightly. Excluding the effects of fuel surcharges, the increase in total pricing yields was in the mid-single-digits. The strength of both of these pricing statistics versus last year was consistent with what we saw in the second quarter.
The rate of increase on contract and deferred pricing accounts negotiated during the third quarter was 4.9% which represented the second highest third quarter level in the last 16 years. For the first nine months of this year, ABF also secured an average increase of 4.9% on these price sensitive accounts, the second highest year-to-date increased level in the last 16 years. Also ABF implemented a general rate increase of 4.9% on October 5.
ABF Freight's third quarter revenue declined due to lower tonnage levels versus a strong growth period last year, and the impact of lower fuel surcharge revenue associated with declining diesel fuel prices. Despite the weakness associated with the slowing economic environment, ABF Freight focus on a high level of customer service and solid pricing to improve its third quarter operating results versus last year.
ABF Freight worked toward increased freight handling efficiencies, and reducing the need for outside operational resources, through better utilization of company drivers and equipment.
During last year's third quarter, tonnage growth in ABF Freight's total business increased over 6% and weight in ABF core LTL business grew at a double-digit rate. In this year’s third quarter, ABF Freight increased the number of shipments it handled, but tonnage totals were below 2014 in each month of the quarter. Despite a decline in weight per shipment, ABF Freight was able to increase operating income by over 7% during a period of reduced revenue.
As I previously mentioned, ABF Freight showed continued improvement in important dock handling metrics that reflect the operational focus being placed on labor efficiency. Handled bills per dock hour improved 2.9% over last year. We continue to focus on improving our local pickup and delivery operations. Despite a moderate decline in sequential stops for city driver, shipments for customer stops showed improvement on both a year-over-year and a sequential basis reflecting greater efficiencies when ABF Freight city drivers are at our customers' facilities.
Our focus on better loading to outbound line haul trailers is reflected in the modest improvement of system load average figures.
ABF Freight succeeded in controlling city tractor and trailer rentals in its use of cartage. In addition, the need for outside rail and truckload services to supplement ABF line haul operations was reduced and we did a better job of managing empty equipment cost.
During the third quarter, ABF Freight was successful in maintaining price discipline and achieving increased rates. Despite the effects of significantly lower fuel surcharges versus last year, ABF Freight's total third quarter revenue per hundredweight increased slightly. Excluding the effects of fuel surcharges, the increase in total pricing yields was in the mid-single-digits. The strength of both of these pricing statistics versus last year was consistent with what we saw in the second quarter.
The rate of increase on contract and deferred pricing accounts negotiated during the third quarter was 4.9% which represented the second highest third quarter level in the last 16 years. For the first nine months of this year, ABF also secured an average increase of 4.9% on these price sensitive accounts, the second highest year-to-date increased level in the last 16 years. Also ABF implemented a general rate increase of 4.9% on October 5.
