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ABF | revenue per day increase 24% year-over-year in November.

Sumting Wong

Sumting Wong

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www.freightwaves.com

Q3’s strength carries into Q4, LTL carriers report

Intraquarter updates from less-than-truckload carriers show record third-quarter operating conditions have continued through the first two months of the fourth quarter.
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ArcBest (NASDAQ: ARCB) announced its asset-based unit, which includes LTL operations, saw revenue per day increase 24% year-over-year in November. That followed a 20% revenue increase in October. Tonnage was up 7% year-over-year in November (+1% in October) with revenue per hundredweight, or yield, up 16% (+18% in October).

The numbers were in line with the company’s record third-quarter results, which came in ahead of analysts’ expectations as earnings per share were more than double the same period in 2020. A modest tonnage increase along with a 17% jump in yield resulted in an 86.7% operating ratio during the quarter, 570 basis points better year-over-year.

On the quarterly call, management didn’t back away from the prospect of maintaining the mid-80s OR going forward either. They said recent investments in equipment, terminals and staff would drive a mid-single-digit percentage increase to shipment capacity in 2022. And that the real margin lever would continue to be yield improvement initiatives, which were evident again in the November update.
 
Purchased transportation expense in the asset-light segment as a percentage of revenue increased 50 bps year-over-year to 85% in November after moving 100 bps lower in October to 83%.
 
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