XPO's Q2 Tonnage Trends Ahead of Guidance
Less-than-truckload carrier XPO's May update appears to put the company on course to outperform its prior tonnage outlook.
The company has been actively pursuing local shippers, which tend to have lower shipment weights but better margins.
Final results for April showed tonnage was down 1.5% year over year.
XPO is outperforming typical seasonal demand trends and appears in good position to beat its tonnage guidance for the second quarter.
The company's tonnage declines are continuing to step lower on a two-year-stacked comparison.
May tonnage was down 5.2% following a 7% decline in April.
Industrial activity improved for a fifth consecutive month in May, according to manufacturing data published on Monday.
The Institute for Supply Management's Manufacturing PMI registered a 54 reading for the month, which was 130 basis points higher than April.
The company's pursuit of local shippers and premium services is contributing to its strong tonnage trends.
