By Paul Benfer – Kinetic Supply-Chain Services –
Many large LTL carriers reported slower growth in August 2016.
While FedEx reported overall revenue growth of 12.7%, FedEx Freight lagged behind with a two percent increase in income revenue for the same period in 2015.
Arc Best, parent of ABF, reported 1% growth in August 2016 versus the same period in 2015. Tonnage was down 4% year over year versus 2015.
ODFL reported a drop of 1.4% in tonnage year over year while moving 1.5% less shipments in August.
Forward Air lowered their projected growth from a high of 5% to -2% to 2% overall. Tonnage is down 4.6% in 2016.
Truckload tonnage increased 5.9% in August. Overall yearly growth is at 3.5%.
It will be interesting to see if the projected rate increases (4.9% average) will hold due to slow LTL growth.