ArcBest Corp. will increase general LTL pricing by an average of 5.9% on Monday, the carrier announced in a securities filing this week.
The increase may vary across specific lanes and shipments, according to the company. It follows a 5.1% increase in contract renewals and deferred pricing agreements in Q2, and a 5.3% increase in renewals in Q1.
“Pricing remains rational, and the strength of our core business allows us to optimize spot prices for transactional business,” the carrier said in the filing.
ABF Freight’s shipment volumes remain steady year over year, but weight per shipment has dipped, its parent company said. The pricing increase comes as tonnage per day continued to take hits throughout 2024, dropping 20.3% in Q2 year over year and 11% in Q3 so far.
Some of the core business ABF Freight won in Yellow Corp.’s bankruptcy last summer was “project related, and some of the increased business has shifted to other providers over the past year,” ArcBest said in the filing.
The lower weight per shipment levels — after a year-over-year decrease in daily tonnage in the first half of the year — reflect a softer macroeconomic environment, the company said. Tonnage levels are expected to be down year-over-year in Q3.
“This lower weight per shipment is driving the lower revenue per shipment, total tonnage, and revenue per day,” ArcBest said.
The company is also paying higher labor costs following an Aug. 1 increase under a collective bargaining agreement with its Teamsters-represented employees. The company estimates combined wage and benefits increased about 2.7%.
