Old Dominion Posts First Tonnage Gain in Two Years
Freight carriers saw mixed third-quarter results as diesel costs rose and rate recovery lagged in the trucking market.
Updated on Nov. 2, 2026 in Transportation
Old Dominion Freight Line reported its first year-over-year tonnage gain in two years in the third quarter. Knight-Swift also reported operating ratio improvement, even as diesel prices climbed sharply.
Why it matters
Diesel prices rose 48% year over year during the quarter, and fuel surcharges lagged those costs in 9 of 13 weeks, squeezing carrier margins. Investors have also grown wary that carriers may be over-earning in an inflationary fuel environment, pushing LTL stocks down about 30% from their June peak.
Old Dominion posted a 71.5 operating ratio and a 440-basis-point spread between revenue and cost per shipment in Q3. Diesel rose 48% year over year, and fuel surcharges trailed those costs in 9 of 13 weeks.
The players
Old Dominion Freight Line
A large U.S. less-than-truckload carrier whose quarterly results are closely watched as a bellwether for the LTL sector.
Knight-Swift Transportation
One of the largest truckload carriers in North America, operating a mix of dedicated and one-way freight networks.
The details
Knight-Swift said its tender rejections ran two to three times above the broader market, and it carried its most peak-season project freight since the pandemic. Its revenue per total mile ex-fuel swung from a 90-basis-point lag in the first quarter to an 840-basis-point positive spread in the third, though about 70% of its fleet runs one-way, non-dedicated lanes where rates reprice quickly.
Timeline
June 2026: LTL stocks reached their peak before falling roughly 30%.
September 2026: Old Dominion's tonnage inflection began.
Q4 2026: Carriers guided for sequential operating ratio deterioration.
Market Landscape
Dedicated truckload contracts indexed to producer price escalators provide steadier revenue but lag when spot rates rise. Carriers with heavier one-way and spot exposure, like Knight-Swift, capture faster rate recovery but absorb more volatility.
Shippers may see freight rates on one-way bids rise in the low-double-digit to mid-teen percent range as carriers push increases. Higher fuel costs continue to flow through to delivered prices for goods moved by truck.
The takeaway
Carrier earnings are improving on operating metrics, but investors and shippers should watch whether rate gains survive fourth-quarter cost pressure. Fuel surcharge timing matters most for shippers budgeting freight spend.
Further reading
For more on freight carriers and rate trends, explore Transportation coverage.
