LTL Q4 2024 Overview

The Less-Than-Truckload (LTL) sector faced a challenging fourth quarter in 2024, marked by declining revenues and shipment volumes. Despite these hurdles, several leading carriers demonstrated resilience through strategic initiatives and operational adjustments.

Old Dominion Freight Line

Old Dominion reported a 7.3% decrease in total revenue for Q4 2024, amounting to $1.39 billion, down from $1.50 billion in the same period the previous year. This decline was primarily attributed to an 8.2% reduction in LTL tons per day. The operating ratio increased by 410 basis points to 75.9%, influenced by the revenue drop and higher miscellaneous expenses. Despite these challenges, the company maintained strong service metrics, achieving a 99% on-time performance and a cargo claims ratio below 0.1%.

XPO

XPO’s North American LTL segment experienced a 2.6% revenue decline in Q4 2024, totaling $1.16 billion compared to $1.19 billion in Q4 2023. The company saw a 4.4% decrease in shipments per day and a 5.7% reduction in tonnage per day. However, yield excluding fuel surcharges increased by 6.3%, contributing to a 20.1% rise in operating income, which reached $179 million.

Saia

Saia reported positive operational metrics, with LTL shipments per workday increasing by 4.5% and LTL revenue per shipment rising by 1.3% in Q4 2024. Additionally, LTL tonnage per workday grew by 8.3%. Despite these gains, the company faced a 2.3% decrease in LTL revenue per hundredweight, indicating pricing pressures within the market.

Knight-Swift Transportation Holdings

Knight-Swift’s LTL segment experienced a 20.2% year-over-year increase in revenue, excluding fuel surcharges, driven by a 13.3% rise in shipments per day. However, the adjusted operating ratio deteriorated to 94.5%, influenced by start-up costs and integration expenses related to recent acquisitions, including the less-than-truckload division of Dependable Highway Express.

Market Outlook

The fourth quarter of 2024 highlighted the LTL industry’s resilience amid economic headwinds. While shipment volumes and revenues faced downward pressure, carriers employed strategic pricing and operational efficiencies to navigate the challenging environment. Looking ahead, industry leaders express cautious optimism, anticipating potential improvements in freight demand and rate structures as economic conditions stabilize.

In summary, the LTL market’s fourth-quarter performance underscores the sector’s adaptability in the face of adversity. Through strategic initiatives and a focus on operational excellence, carriers are positioning themselves to capitalize on future market improvements.