LTL carriers benefit in Q3 from rebounding freight market

ArcBest’s asset-based operations, which largely comprise LTL carrier ABF Freight, recorded a 14% year-over-year increase in weight per shipment in August. (ArcBest Corp.)

The weight of shipments transported by less-than-truckload carriers in the third quarter of 2026 kept rising as an ongoing freight market recovery boosts activity, according to data from publicly traded companies.

Revenue and profit margins are also improving, as industrywide capacity constraints are helping lift freight profiles for LTL carriers, reinforcing a trend that emerged in the second quarter. Strong pricing and elevated diesel costs also are affecting fleets’ bottom lines, with both reaching multiyear highs, observers said.

Margins on LTL shipments also remain strong. The TD Cowen/AFS LTL Freight Index is forecast to reach a record 76.8% in the third quarter, up 0.2 percentage points from the second quarter and 5.9 percentage points from a year earlier.

ArcBest’s asset-based operations, which largely comprise LTL carrier ABF Freight, recorded a 14% year-over-year increase in weight per shipment in August, the company said in a Sept. 8 Securities and Exchange Commission filing. Fellow LTL specialist Saia reported that weight per shipment increased 7% in July compared with July 2025 and 7.5% in August from the year-ago period.

ArcBest and Saia rank Nos. 14 and 18, respectively, on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and Nos. 7 and 6 among the largest LTL carriers.

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Saia reported that weight per shipment increased 7% in July compared with July 2025 and 7.5% in August from the year-ago period. (Saia Inc.)

Old Dominion Freight Line said Sept. 3 that August revenue per day increased 12.4% from August 2025, driven by higher LTL revenue per hundredweight. That gain was partially offset by a 0.9% decline in LTL tons per day.

“Old Dominion produced solid revenue growth for July and August, with underlying demand trends remaining relatively consistent as the quarter has progressed,” CEO Marty Freeman said.

ODFL ranks No. 11 on the for-hire TT100 and No. 2 among LTL carriers.

ODFL’s third-quarter revenue per hundredweight excluding fuel through Sept. 3 was up 4.8% year over year, exceeding the 4%-4.5% outlook management provided on its July 29 earnings call, Deutsche Bank analyst Richa Harnain wrote.

Saia and LTL carrier XPO both expressed confidence in pricing during their midquarter updates, Harnain wrote in a Sept. 4 research note. XPO ranks No. 5 on the for-hire TT100 and No. 4 among LTL carriers.

Based on Saia’s comments, Deutsche Bank sees a path for third-quarter revenue per shipment excluding fuel to exceed the more than 4% year-over-year increase reported at the end of the second quarter, Harnain wrote.

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Old Dominion Freight Line said August revenue per day increased 12.4% from August 2025. (Old Dominion Freight Line)

Fuel prices affecting bottom lines

Diesel prices, meanwhile, have climbed sharply in recent weeks as geopolitical tensions and supply chain disruptions added volatility to global energy markets. Diesel prices tend to remain elevated longer than crude oil or gasoline prices.

Uber Freight, in its third-quarter market report, said that since LTL fuel surcharge tables rise along with diesel prices, the recent increase is adding to margins rather than simply becoming a pass-through to customers.

The national average diesel price reached $6.05 per gallon Sept. 11, up from $5.85 a week earlier and $3.70 a year earlier, according to AAA. At an average of about $6 nationwide and more than $8 in California, filling two 150-gallon tanks on a Class 8 truck can cost as much as $1,200 per stop, veteran analyst Tom Kloza said in a Sept. 10 social media post.

No question that we'll see $6+ for average diesel prices overnight and $8+ in California. Cost of filling the two 150-gallon tanks on an 18-wheeler can be $900-1200 per fill.

— Tom Kloza (@TomKloza) September 10, 2026

“Diesel is the fuel that moves the economy, and when diesel prices reach record levels, the impact extends far beyond the transportation sector,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

Uber Freight also advised shippers to adapt to ongoing freight-market and fuel-price volatility by broadening their carrier base, conducting targeted lane-level bids, evaluating alternatives to traditional LTL service, and improving load consolidation and packaging density.

Uber Freight ranks No. 16 on the TT Top 100 logistics companies list.