Labor
Old Dominion Freight Line reaches 70.1% operating ratio in Q2
Old Dominion Freight Line's second-quarter operating income increased 30% year-over-year to $465.3 million, with the operating ratio improving to 70.1% from 74.6% in the same period last year. Despite LTL tonnage, shipments, and intercity miles declining 4.1%, 5.7%, and 4.8%, respectively, management indicated that demand has been steadily improving since late last year and raised its annual capital expenditure plan by over $115 million to approximately $380 million.
CCM appoints first-ever chief commercial officer
CCM, an intermodal chassis management company based in New Jersey, announced that Kevin Daly will assume the newly created role of Chief Commercial Officer, effective July 28. Daly previously served as Chief Commercial Officer at East Coast Warehouse & Distribution and brings more than three decades of industry experience.
Carriers note tight labor market, select incentives increasing pay
Large carriers J.B. Hunt Transport Services and Knight-Swift Transportation Holdings revealed in second-quarter earnings conference calls that they are retaining labor through selective hiring bonuses and other pay adjustments. Executives noted that these measures are not broad-based but are deployed in key markets, reflecting a tightening labor market and rising wage pressures.
ATRI report: Carriers slash freight capacity amid rising costs
The American Transportation Research Institute (ATRI) released its "An Analysis of the Operational Costs of Trucking" report on July 15, showing that average truck operating costs rose to $2.336 per mile in 2025, a year-over-year increase of 3.4%, the highest level in the report's history. Cost increases spanned nearly all categories, with tolls, maintenance and repair, driver benefits, and tires seeing the largest gains. To offset cost pressures, carriers reduced their average fleet size by 2.4% and idled approximately 10% of equipment. Despite the ongoing freight recession, truckload profit margins have shown some recovery, but the industry as a whole still faces pressure from both rising costs and stagnant freight rates.
Analysis of the Impact of ArcBest's Restructuring Plan on ABF Freight Operations
As part of its restructuring plan, ArcBest will close and consolidate multiple service centers in states including Connecticut, Kentucky, and Illinois, affecting approximately 1% of total dock doors. Additionally, the company plans to reduce about 2% of its non-union workforce, subject to agreements with unions.
Analysis finds economic environment is shutting young adults out of entry-level jobs
Research from the Federal Reserve Bank of St. Louis shows that from April 2023, when the U.S. labor market was at its strongest, to December 2025, the employment rate for people aged 18 to 24 fell by more than 2 percentage points, mainly reflected in a rise in unemployment, while employment for those aged 25 to 64 remained largely stable. The rise in demand for AI skills is partly responsible, accounting for about one-third of the increase in unemployment among young people.
ArcBest Announces Closure of 10 Service Centers and 2% Workforce Reduction to Advance Restructuring
ArcBest unveiled a restructuring plan on Thursday, involving the closure of 10 service centers, a 2% workforce reduction, and the consolidation of its brands. The company expects this move to save $40 million annually, but initial investments will be higher. The newly launched Vaux Freight Movement System will be discontinued, while the Vaux Smart Autonomy product line (including autonomous forklifts) will be retained.
J.B. Hunt's second-quarter revenue rose 19% year-over-year to $3.5 billion
J.B. Hunt Transport Services' second-quarter earnings report, released on Wednesday, showed revenue up 19% year-over-year to $3.5 billion, driven by volume growth in most segments, particularly intermodal. Intermodal operating income rose 22% to $1.75 billion, with volumes up 10% year-over-year to over 578,000 loads, a quarterly high. Company executives noted significant highway-to-rail conversion opportunities, but driver shortages could impact growth.
U.S. job market continues pattern of 'low hiring, low turnover'
The Conference Board's Employment Trends Index for June fell for the second consecutive month, indicating that the U.S. job market still exhibits characteristics of 'low hiring and low turnover.' The proportion of consumers who believe 'jobs are hard to find' rose to its highest level since January 2021, and initial jobless claims also rose to the highest monthly average of the year.
Experts Predict Freight Rates May Recover This Year
Freight companies may not have to wait until next year to escape the prolonged rate downturn. Carriers are beginning to release signals of market improvement, and supply chain managers may face higher transportation costs in the future. Experts point out that inventories are normalizing, and some executives at major trucking companies believe the market inflection point is near, but the rate recovery is expected to be gradual.