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ArcBest Posts 650 Basis Point Q2 Improvement as Capacity Tightens

ArcBest's asset-based division delivered an operating ratio approaching 90% in the second quarter, a 650 basis point sequential improvement. This far exceeded typical seasonal gains of 300 to 350 basis points.

The asset-based segment generated just over $6 million in operating income, more than quadrupling the $1.5 million produced for all of 2023. The Fort Smith, Arkansas-based integrated logistics company capitalized on tightening truckload capacity that drove shippers toward carriers with greater scale.

CEO Seth Runzer attributed results to disciplined execution and market dynamics favoring established carriers. He noted the Purchasing Managers Index has held in expansion territory for five to six months following four years of contraction, though supply-side pressures remain the primary driver of improved volumes.

Data center construction and ATV shipments showed strength, while apparel remained weak. Heavier shipments above 10,000 pounds are beginning to return to LTL networks.