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ArcBest Accelerates LTL Rate Increases as Industrial Activity Rebounds

ArcBest implemented a 5.9% general rate increase across its less-than-truckload operations Monday, marking a departure from its typical 11-month pricing cadence. The increase arrives roughly six weeks ahead of the one-year anniversary of the previous adjustment, continuing a pattern where GRIs have shifted earlier by approximately one month annually over the past four years.

The company raised second-quarter guidance for its asset-based unit, forecasting 600-700 basis points of sequential margin improvement—significantly above the normal 350 basis point seasonal gain. Management attributed the stronger outlook to pricing initiatives and cost reductions, alongside accelerating tonnage growth driven by higher-rated truckload shipments.

Industrial activity strengthened considerably, with the Manufacturing PMI registering 54 in May, its highest level in four years. The new orders subindex jumped to 56.8, signaling robust future demand. ArcBest also boosted guidance for its asset-light segment, projecting second-quarter adjusted operating income between $3 million and $5 million, $2 million higher than the prior forecast.