Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Another Carrier Lowers Expectations, Three LTLs Hiking Rates

Forward Air Corp. has become the latest trucking operation to lower expectations ahead of releasing its next earnings report.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
September 20, 2016
Another Carrier Lowers Expectations, Three LTLs Hiking Rates

 

3 min to read


Forward Air Corp. has become the latest trucking operation to lower expectations ahead of releasing its next earnings report.

It is forecasting third-quarter 2016 year-over-year revenue growth to range from between a 2% decline to a 2% improvement, down from a previously announced range of 1% increase to a 5% gain.

Ad Loading...

The company also lowered its adjusted income guidance range to 48 cents to 52 per share from its earlier announced range of 61 cents to 65 cents. The change, according to a statement, is due to lower freight volumes.

“Since our second quarter earnings call, the economic environment has remained sluggish. While we are seeing the effects across our portfolio, less-than-truckload volumes have been noticeably soft,” said Bruce A. Campbell, chairman, president, and CEO. “Through Sunday, Sept. 18, our unadjusted year-over-year LTL tonnage per day for the third quarter was down 4.6%. While our yields and margins have held up, we no longer project that we will achieve our previously provided guidance ranges and are adjusting our outlook for the quarter.”

Forward Air operates four principal segments: expedited LTL, truckload expedited services, intermodal and pool distribution services.

Ad Loading...

The news follows LTL carrier Old Dominion Freight Line Inc. saying early this month that it saw less freight during August.

LTL tons per day decreased 1.4% compared to August 2015, which it attributed to a 1.5% drop in LTL shipments per day and a 0.1% increase in LTL weight per shipment.

“The decline in Old Dominion’s LTL tons per day for August reflects an operating environment that continued to be challenging,” said David Congdon, vice chairman and CEO. “The pricing environment has remained relatively stable, however, and quarter-to-date LTL revenue per hundredweight, excluding fuel surcharges, increased between 2% and 2.5% as compared to the same period of last year. As a result, our quarter-to-date total revenue per day was slightly below the same period of 2015.”

Since then ODLF has announced it will increase non-contract, general rates 4.9% beginning Sept. 26.

“Our general rate increase (GRI) will affect our class tariffs and is intended to partially offset the rising costs of new equipment, real estate, technology investments, and competitive employee wage and benefit packages,” said Todd Polen, Old Dominion’s vice president of pricing. “Although the GRI will impact each customer differently based on specific shipment lanes and distance traveled, it is consistent with our long-term yield management philosophy. The GRI also provides for a nominal increase in minimum charges with respect to intrastate, interstate and cross border lanes.”

Ad Loading...

The rate increases follow those announced earlier from LTL and parcel delivery giants FedEx and UPS.

FedEx Corp. will hike them on Jan. 2, 2017 with its FedEx Express, FedEx Ground and FedEx Freight, subsidiaries

The LTL carrier FedEx Freight will increase shipping rates by an average of 4.9%. This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.

FedEx Express will increase shipping rates by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services. FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%. FedEx SmartPost rates will also change.

The move by FedEx also follows UPS saying early this month it was increasing rates, including a 4.9% jump in general rates for its UPS Freight division beginning this past Monday, Sept 19.

Ad Loading...

Plans call for average increases of the same amount starting Dec. 26 for UPS Ground and UPS Air.

More Fleet Management

ATA economist Bob Costello speaking beside a graph showing truckload operating costs rising as freight revenue per mile declined after 2022.
Fleet Management•by Deborah Lockridge•October 22, 2026

Why This Trucking Recovery Is Different

Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.

Read More →
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Screen capture showing PrePass Intelligence data on tolls
Fleet Management•by News/Media Release•October 21, 2026

PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data

PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.

Read More →
Ad Loading...
Computer screen showing examples of what fleets could ask Motive AI Agents to do
Fleet Management•by Staff•October 20, 2026

Motive Adds AI Agents for Fleet Operations

New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.

Read More →
Graphic art with a heavy-duty tractor trailer and a work truck with the words "trivia lunch"
Fleet Management•by Lauren Fletcher•October 19, 2026

Can You Beat Our Trucking Trivia Challenge?

Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?

Read More →
Four horizontal and two vertical video screens show different aspects of BeyondTruck's new compatibility engine
Fleet Management•by Deborah Lockridge•October 19, 2026

BeyondTrucks Adds Rules Checks to Dispatch

New Compatibility Engine checks driver qualifications, equipment requirements and fleet policies before loads are dispatched.

Read More →
Ad Loading...
Gloved hand fueling a truck beside a graphic listing ATRI’s top three trucking concerns for 2026: fuel prices, lawsuit abuse reform and CSA.
Fleet Management•by Deborah Lockridge•October 19, 2026

Diesel Prices Hijack Trucking’s Worry List

ATRI’s annual survey finds cautious optimism about freight, but diesel costs, litigation, and insurance continue to squeeze fleets. Drivers have different priorities on several issues.

Read More →
Illustration showing ladders against a blue background with Heavy Duty Trucking Emerging Leaders logo and the words "2026 nominations now open"
Fleet Management•by Staff•October 16, 2026

Nomination Deadline Extended for HDT Emerging Leaders

Just a few more days to nominate accomplished trucking fleet professionals under 40 who are making an impact and helping lead the industry forward for the HDT Emerging Leaders award. Deadline extended to October 20!

Read More →
Headshot of Mark Colson in front of a truck grille next to an American Trucking Associations logo
Fleet Management•by Deborah Lockridge•October 15, 2026

What Will ATA’s New Leader Bring to Trucking's Table?

Incoming President and CEO Mark Colson’s record in Alabama offers clues about his priorities and approach following Chris Spear’s abrupt departure as the head of the American Trucking Associations.

Read More →
Ad Loading...
Waabi-Volvo autonomous VNL truck.
Fleet Management•by News/Media Release•October 13, 2026

Volvo, Waabi Start Commercial Autonomous Operations in Texas

Volvo VNL Autonomous trucks, powered by the Waabi Driver, are hauling freight directly to third-party facilities for a customer in Texas.

Read More →