ArcBest's second-quarter results showed operational improvements in both of its business segments. It is benefitting from heavier shipment weights on the ***** et-based side of the house while cost initiatives have pushed its logistics offering back into profitability.
ArcBest's (NASDAQ: ARCB) ***** et-based unit, which includes less-than-truckload subsidiary ABF Freight, reported a 10% y/y increase in revenue to $784 million. Tonnage per day was 5% higher as a 3% decline in shipments was more than offset by an 8% increase in weight per shipment.
Tonnage growth on a y/y comparison was fairly steady throughout the quarter—up 6.1% in April, up 4.6% in May and up 4.1% in June. The two-year-stacked comps were up 10%, 11% and 7%, respectively.
Tonnage growth accelerated in July, up 8% y/y (plus-9.3% on a two-year-stacked comp). Management said on a Wednesday call with ***** ysts that tonnage normally declines 4.6% from June to July but is only down 1% this year.
Some freight lost to a depressed truckload market has returned as TL spot rates have climbed. This is driving average shipment weights higher. ArcBest is capturing low-double-digit rate increases on TL shipments.

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