ArcBest saw a modest increase in asset-based revenue in August but lowered its third-quarter margin outlook due to macro headwinds and higher costs. The carrier reported a 2% increase in tonnage but no change in average yield. Manufacturing sector weakness continues to affect demand and shipment weights.

Despite the increase in tonnage, ArcBest’s asset-based segment saw a decrease of 7.9% on a two-year-stacked comparison in August. The company is now expecting the operating ratio to be flat or slightly worse in the third quarter compared to the second quarter. Higher cartage expenses are also impacting the third quarter.

ArcBest has identified account- and lane-level adjustments to lift overall LTL pricing and enhance profitability. Yields have been declining modestly year-over-year, but shipment weights are helping to offset this. Prior-year comps have been a headwind but are expected to ease in the coming months.

ABF implemented a 5.9% general rate increase in August and will continue to adjust pricing. ArcBest reaffirmed third-quarter operating income guidance for its asset-light segment. Asset-light revenue is down 8% year-over-year as purchased transportation expense remains steady at 85%.

Shares of ARCB were down 3.2% in early trading compared to the S&P 500. The company is facing challenges with soft demand and higher costs, leading to a revised outlook for the third quarter. The impact of recent pricing adjustments and shipment weight trends will continue to shape ArcBest’s performance.

Read more at Yahoo Finance: ArcBest cuts Q3 margin outlook due to soft demand, higher costs