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LTL Carriers Outpace Truckload Operators in Q3 Earnings Performance

Less-than-truckload carriers demonstrated superior profitability in the third quarter by capitalizing on demand improvements and managing costs effectively. Truckload operators, by contrast, faced margin compression despite revenue gains. Old Dominion Freight Line led the segment with its first year-over-year tonnage increase in two years, posting a 71.5 operating ratio. XPO and Saia reported operating ratios in the 80s. All three carriers expect sequential OR deterioration in Q4, which industry analysts attribute to normal seasonal patterns rather than fundamental demand weakness. Year-over-year OR improvements ranged from 230 to 320 basis points across the three carriers. Diesel prices surged 48% annually, creating fuel surcharge revenue but introducing volatility concerns. LTL carrier tonnage trends turned positive in March and have continued to accelerate, aligned with 10 straight months of ISM improvement now in growth territory.