Saia’s tonnage growth steps higher in August as comps ease

Less-than-truckload carrier Saia saw tonnage growth accelerate on a year-over-year comparison in August, but it faced an easier prior-year comp during the month than it did in July.

Johns Creek, Georgia-based Saia ( NASDAQ: SAIA ) reported Thursday an 8.7% y/y tonnage increase in August as daily shipments stepped 1.1% higher and weight per shipment jumped 7.5%. The metrics improved slightly from July's y/y growth rates due to easier prior-year comps.

On a two-year-stacked comparison, Saia's tonnage increases slowed for a second straight month (+6.5% in August and +8.7% in July). That said, the carrier implemented a 7.1% general rate increase on July 6, which it noted can create some near-term volatility. Further, the carrier faces easier prior-year comps (excluding November) the rest of the year.

Saia does not provide revenue-based metrics in its intraquarter updates.

However, the company previously noted that revenue per shipment increased 4% from the beginning to the end of the second quarter. The recent GRI was 120 basis points higher and three months earlier than last year's rate bump—another positive sign. And, contractual rate renewals averaged 10.7% in the second quarter (+15.8% on a two-year-stacked comp).

Old Dominion's ( NASDAQ: ODFL ) August update, also published on Thursday, showed an acceleration in y/y yield growth from July to August, both with and without fuel surcharges.

Saia reported y/y margin improvement in the second quarter for the first time since the 2024 first quarter. However, the company's third-quarter guide calls for slight y/y deterioration.

It normally sees 150 to 200 bps of margin degradation from the second to third quarter, but it expects only 100 bps of erosion this year. The outlook implies an 87.9% operating ratio, which would be 30 bps worse y/y (excluding the impact from a real estate gain in the 2025 third quarter).

The company has opened, expanded or relocated roughly 60 terminals since 2022, increasing door count by 25% and making it a national carrier. However, these locations are operating at a low-90% OR, a drag compared to the rest of its network, which is operating in the low-80s.

It delayed last year's wage increase from July to October, but implemented a new pay hike in July this year, creating a headwind of overlapping increases that will both hit the third quarter.

Shares of SAIA were up 2.9% at 12:26 p.m. EDT on Thursday while shares of ODFL were off 2.4%. The S&P 500 was up 1%.

The space got hit earlier in the week as manufacturing data came in slightly below expectations. The Institute for Supply Management's Manufacturing PMI stood at 54.6 in August, 60 bps light of consensus and 100 bps below July's four-year high. (A reading above 50 signals expansion, while one below 50 indicates contraction.)