{"id":1343,"date":"2023-12-08T05:32:29","date_gmt":"2023-12-08T05:32:29","guid":{"rendered":"https:\/\/ladingcargo.com\/blog\/?p=1343"},"modified":"2025-01-10T09:28:34","modified_gmt":"2025-01-10T09:28:34","slug":"forward-air-soars-higher-with-strong-tonnage-growth","status":"publish","type":"post","link":"https:\/\/ladingcargo.com\/blog\/forward-air-soars-higher-with-strong-tonnage-growth\/","title":{"rendered":"Forward Air Soars Higher With Strong Tonnage Growth"},"content":{"rendered":"<p>Forward Air&#8217;s freight volumes continue to rise in the fourth quarter, with tonnage up 5.5% so far in October-November. The expedited transportation and logistics provider also reported increases in weight per shipment and revenue per shipment. The positive metrics show Forward Air&#8217;s strategic focus on high-quality freight and pricing power is taking hold.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ladingcargo.com\/blog\/forward-air-soars-higher-with-strong-tonnage-growth\/#Tonnage_Takes_Flight_as_Network_Optimization_Bears_Fruit\" >Tonnage Takes Flight as Network Optimization Bears Fruit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ladingcargo.com\/blog\/forward-air-soars-higher-with-strong-tonnage-growth\/#Pricing_Initiatives_Drive_Margin_Expansion\" >Pricing Initiatives Drive Margin Expansion<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ladingcargo.com\/blog\/forward-air-soars-higher-with-strong-tonnage-growth\/#Unclear_Merger_Situation_Clouds_Stock_Outlook\" >Unclear Merger Situation Clouds Stock Outlook<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Tonnage_Takes_Flight_as_Network_Optimization_Bears_Fruit\"><\/span>Tonnage Takes Flight as Network Optimization Bears Fruit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Forward Air announced robust tonnage growth Wednesday in a fourth-quarter update. The company&#8217;s expedited segment, including less-than-truckload (LTL) operations, handled 5.5% more tons per day in October-November versus the same period last year. This continues an upward trajectory after tonnage turned positive in September following declines earlier in 2022.<\/p>\n<p>The tonnage increase also shows progress in overcoming a weak comparison period, as tonnage dropped 11.9% year-over-year in the fourth quarter of 2021. CEO Tom Schmitt says the gains reflect efforts to grow LTL freight volumes and focus on securing more preferred, high-quality customers.<\/p>\n<p>&#8220;We continue to optimize our network and tailor our best-in-class expedited services to customers with time-sensitive freight needs,&#8221; Schmitt explained. &#8220;The tonnage and weight per shipment increases prove we are winning loyal customers who ship heavy freight.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Pricing_Initiatives_Drive_Margin_Expansion\"><\/span>Pricing Initiatives Drive Margin Expansion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Alongside higher volumes, Forward Air is seeing positive momentum in pricing. Weight per shipment popped 11% higher in October-November, indicating Forward Air is successfully targeting a more premium freight mix. Simultaneously, revenue per shipment climbed 2.6% amid inflationary pressures.<\/p>\n<p>The pricing gains showcase Forward Air&#8217;s strategy coalescing at an opportune time. &#8220;We are making sure we are getting paid more per shipment,&#8221; said Schmitt. &#8220;This all reflects our Grow Forward strategy of focusing our best-in-class service on high value freight, operating in a cleansed network, and pricing appropriately.&#8221;<\/p>\n<p>In fact, excluding fuel surcharges, revenue per ton mile expanded 1.8% year-over-year so far this quarter. As higher-margin shipments compound, these volume and pricing dynamics position Forward Air well for a strong Q4 financial performance.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Unclear_Merger_Situation_Clouds_Stock_Outlook\"><\/span>Unclear Merger Situation Clouds Stock Outlook<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Meanwhile, Forward Air remains embroiled in an increasingly contentious legal dispute regarding its proposed merger with freight forwarder Omni Logistics. Forward Air alleges Omni misrepresented financial projections and couldn&#8217;t satisfy closing conditions as per the original merger agreement.<\/p>\n<p>The unclear path to completing the deal, along with ballooning legal fees, has weighed heavily on Forward Air&#8217;s stock. Shares have plunged over 40% since the merger announcement in August. But if strong operating metrics persist, it could reinvigorate investor optimism after an exceptionally turbulent period.<\/p>\n<p>By leveraging their expertise and resources,\u00a0<strong><a href=\"https:\/\/ladingcargo.com\/\">Lading Logistics<\/a><\/strong>\u00a0aims to provide efficient and reliable international shipping and logistics solutions for their clients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Forward Air&#8217;s freight volumes continue to rise in the fourth quarter, with tonnage up 5.5% so far in October-November. The expedited transportation and logistics provider also reported increases in weight&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2228,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[131],"tags":[],"class_list":["post-1343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Forward Air Soars Higher With Strong Tonnage Growth<\/title>\n<meta name=\"description\" content=\"Forward Air reports higher freight tonnage, and revenue per shipment in Q4 so far, despite ongoing legal disputes over the troubled merger.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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