Saia’s tonnage turns negative after 22-month run
From Yahoo Finance: 2025-06-05 11:46:00
Saia, a less-than-truckload carrier, experienced a decline in volume in May after 22 months of growth following Yellow Corp’s shutdown. The decline was due to a drop in shipments, partially offset by an increase in weight per shipment.
Saia aggressively expanded after acquiring 28 of Yellow’s terminals and onboarding its customers. Volume growth outpaced the industry, but the freight recession poses challenges. Saia saw a 9.4% tonnage increase in May compared to April’s 12%, with manufacturing activity affecting industry freight.
Saia’s operating ratio worsened to 91.1%, the highest since 2020, due to costs from new terminals and an unfavorable lane mix. Yields were negative in the first quarter, with heavier shipment weights impacting revenue per hundredweight.
Despite challenges, Saia maintained pricing strategy with a 6.1% average rate increase in the first quarter. Revenue-based metrics were not provided in the updates, with uncertainty surrounding the impact of rate increases on future performance.