ABF Operating Ratio Touches 90

Volumes slowed for ABF, the national less-than-truckload (LTL) unit of Arkansas Best, off 1.2% in the second quarter compared with the same period a year earlier. Non-union, regional LTL carriers reported volume increases of 2% to 18% when comparing second quarters.

With total revenues in the quarter of $417.5 million, ABF registered a 3.2% increase in revenue per hundredweight (excluding fuel surcharges), indicating the company has chosen to focus on pricing rather than market share, said equity research firm Legg Mason.

ABF offset weaker tonnage with an early implementation of its general rate increase on spot business (which is just over 60% of the company’s freight mix).