breaking

Manufacturing Expansion Signals Demand Surge for LTL Carriers

Manufacturing activity reached its strongest pace in four years during July, with the Institute for Supply Management's Purchasing Managers Index climbing to 55.3 points—exceeding analyst forecasts and marking seven consecutive months of expansion. New orders extended their growth streak to seven months, rising 70 basis points from June to 56.0, while manufacturing employment turned positive for the first time in 33 months. Four major less-than-truckload carriers reported improved tonnage trends in July. Weight per shipment averaged 3% higher year-over-year as shippers shift truckload freight back to LTL networks. ArcBest outperformed normal seasonal declines by 360 basis points, while XPO and Old Dominion Freight Line saw gains of 400 and 250 basis points respectively. Saia implemented a 7.1% rate increase early in the month. XPO reported heightened customer optimism, with twice as many expecting acceleration through year-end.