Less-than-truckload carrier Saia reported an 8.7% year-over-year increase in tonnage for August, with daily shipments up 1.1% and weight per shipment up 7.5%, as easier prior-year comparisons boosted the metrics slightly from July's growth rates. On a two-year-stacked basis, tonnage growth slowed for a second straight month, coming in at 6.5% in August versus 8.7% in July, partly due to a 7.1% general rate increase implemented on July 6 that can create near-term volatility. The company, which does not provide revenue-based metrics in its intraquarter updates, noted that contractual rate renewals averaged 10.7% in the second quarter, and it expects only 100 basis points of margin degradation from the second to third quarter, implying an 87.9% operating ratio that would be 30 basis points worse year-over-year excluding a real estate gain. Saia has opened, expanded, or relocated roughly 60 terminals since 2022, increasing door count by 25%, though these newer locations operate at a low-90% operating ratio compared to the low-80s for the rest of its network. Shares of SAIA were up 2.9% on Thursday, while Old Dominion's shares were down 2.4%, following a week in which manufacturing data came in slightly below expectations, with the ISM Manufacturing PMI at 54.6 in August, 60 basis points light of consensus.
Saia IncAugust tonnage up 8.7% YoY with easing comps and strong contractual renewals.
Old Dominion Freight Line IncSaia's tonnage growth and rate increases contrast with Old Dominion's decline, while weak manufacturing data pressures LTL demand.
