Shows a decrease in cargo tonnage for XPO in August, according to reports

Decline in truckload shipments at XPO Logistics noticeably slowed down in August, as indicated by their third-quarter report.

, and Administrator

2025 September 14 . 12:18 AM

2 min read

Freight company XPO experiences a noticeable decrease in cargo volumes during August.

Shows a decrease in cargo tonnage for XPO in August, according to reports

In a recent development, XPO Logistics, a leading provider of freight and logistics services, has reported some encouraging signs of recovery in its operations.

The Purchasing Managers' Index (PMI), a key indicator of manufacturing activity, moved into expansion territory for the first time in six months, with a reading of 51.4. This positive shift in the new orders subindex signals a potential uptick in demand for XPO's services.

However, the PMI remained in contraction territory during August, registering at 48.7, indicating that overall manufacturing activity continues to contract.

Despite this, XPO's third-quarter outlook remains optimistic. The company expects a moderation in tonnage declines and further sequential improvement in revenue per shipment and yields. This optimism is driven by a shift in freight mix towards small-to-midsize businesses and the sale of more premium services, which incur accessorial surcharges.

XPO's less-than-truckload unit, in particular, has shown improvement. In August, it experienced a 4.7% year-over-year decrease in tonnage per day, a significant improvement from the 8.7% decline seen in July.

The August tonnage result appears to be modestly ahead of typical seasonal trends, suggesting that XPO may be bucking the industry downturn. In fact, XPO has delivered nearly 400 basis points of margin improvement during this freight downturn, while other public carriers are seeing margins move in the opposite direction.

XPO's operating results continue to benefit from several self-help initiatives. The company is reducing its reliance on third-party capacity for linehaul runs and has several AI-enabled initiatives in place to reduce linehaul miles, improve pickup-and-delivery functions, and cull labor hours per shipment.

The company did not alter its third-quarter margin guidance in its recent news release, indicating a continued confidence in its financial outlook.

It's worth noting that the August tonnage change was driven by a 3.4% decline in shipments and a 1.3% dip in weight per shipment. However, the specific company that showed more progress compared to July is not specified in the provided information.

On a two-year-stacked comparison, July and August were down by 9.5% and 9.3%, respectively. This suggests that while there is still room for improvement, XPO is making steady progress amidst challenging industry conditions.

In conclusion, XPO's third-quarter outlook remains promising, with the company showing signs of recovery and continued financial resilience amidst a broader industry downturn.