Skip to content
Search AI Powered

Latest Stories

XPO beats Q3 expectations in a tough freight market

Freight transportation firm sees profits drop to $86 million from $92 million last year, in same quarter that Yellow Corp. collapsed

XPO_LTL_Driver_truck_yard_4E6A4662_web.jpeg

The less-than-truckload (LTL) freight transportation company XPO saw its profits dip just slightly in the third quarter compared to the same period last year, calling that result a win since it took place near the trough of a freight recession during turbulent market conditions.

XPO’s CEO, Mario Harik, said in a release that “Our third quarter results exceeded expectations, with solid growth in revenue and profitability, and strong forward momentum,” reflecting a solid performance in a soft industry environment for freight transportation. 


For the third quarter 2023 (covering the three months ending September 30), XPO’s revenue was $1.98 billion, compared to $1.95 billion for the same period in 2022. The year-over-year increase in revenue was due primarily to higher tonnage per day and yield, excluding fuel, in the North American LTL segment, partially offset by lower fuel surcharge revenue.

And the Greenwich, Connecticut-based company’s net income from continuing operations attributable to common shareholders was $86 million for the third quarter 2023, compared with $92 million for the same period in 2022.

The third quarter of 2023 was a stormy one for logistics managers, according to the Q4 TD Cowen/AFS Freight Index, recently released by third party logistics provider (3PL) AFS Logistics. “UPS-Teamsters negotiations and the Yellow collapse kept logistics managers on their toes this summer assessing risk and managing contingency plans,” Tom Nightingale, CEO of AFS, said in the report. “Yet even as irregular shocks pressure certain transportation markets, we still see the effects of soft demand and the current macroeconomic climate empowering shippers to find relief.” 

The major disruptive force during that period was the collapse and bankruptcy of Yellow Corp., which had been the nation’s third largest LTL carrier. According to the AFS report, its Q3 index data showed that the LTL rate per pound index grew 2.2% quarter-over-quarter following the Yellow collapse in August. Two-thirds of that lift came from the increase in average linehaul charge, which can be attributed to two main factors: 1. carriers exercising restraint on pricing in anticipation of Yellow’s demise, and 2. freight moving from Yellow, a lower-cost carrier, to carriers with higher average pricing.



 

 

 

The Latest

More Stories

person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less

Featured

Report: SMEs hopeful ahead of holiday peak

Report: SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less
retail store tech AI zebra

Retailers plan tech investments to stop theft and loss

Eight in 10 retail associates are concerned about the lack of technology deployed to spot safety threats or criminal activity on the job, according to a report from Zebra Technologies Corp.

That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.

Keep ReadingShow less
warehouse automation systems

Cimcorp's new CEO sees growth in grocery and tire segments

Logistics automation systems integrator Cimcorp today named company insider Veli-Matti Hakala as its new CEO, saying he will cultivate growth in both the company and its clientele, specifically in the grocery retail and tire plant logistics sectors.

An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.

Keep ReadingShow less

Securing the last mile

Although many shoppers will return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.

One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.

Keep ReadingShow less