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The collapse in July of Yellow, America’s third-largest less-than-truckload (LTL) trucking company, is giving the trucker’s former rivals a boost in a tight freight market. The Wall Street Journal reports that other trucking firms, including XPO, ABF Freight and Old Dominion Freight Line are reporting strong growth in pricing power, shipment volumes and other key measures during the most recent quarter.
As Yellow’s business disperses across a range of operators, other LTL carriers are holding the line on freight rates. That is making the LTL sector a haven this fall in an otherwise faltering freight business that is experiencing sinking demand and meager pricing.
Truckload carriers are declining, and some operators in that sector have fallen into the red. But ArcBest says the average daily shipment count at its ABF Freight unit rose 20% in the third quarter from the second quarter while a key pricing measure grew 16%. XPO, now the third-largest LTL carrier, increased its daily shipment count by 7.8% last quarter.
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