Saia’s Response to Freight Volume Decline

Introduction to Saia’s Financial Performance

On July 25, 2025, Transport Topics reported that Saia Inc., a leading less-than-truckload (LTL) carrier, experienced a dip in profit and revenue for the second quarter, driven by depressed freight volumes. Despite these challenges, Saia’s CEO, Fritz Holzgrefe, emphasized the company’s focus on customer service and operational efficiency during an investor call, stating, “We operate our business with a focus on the customer and managing the things that are within our control.” This approach enabled Saia to outperform expectations by optimizing variable costs and enhancing network efficiency. At Gain Consulting, we view Saia’s response as a model for navigating market downturns, and we are committed to helping logistics businesses adopt similar strategies to maintain resilience and profitability in 2025.

Details of the Freight Volume Decline

The decline in Saia’s profit and revenue reflects broader market challenges, including a 7.9% drop in U.S. inbound container volumes in June 2025, as reported by Transport Topics (July 21, 2025), following a 6.6% decrease in May. These declines, driven by tariffs imposed in April 2025, including a 145% duty on Chinese imports, disrupted global trade flows and reduced freight demand. Saia, which operates a network of 192 terminals across the U.S., felt the ripple effects of this downturn, as lower shipment volumes impacted LTL carriers industry-wide. The second quarter’s 1.8% drop in container volumes compared to 2024, coupled with a projected 20% decline in containerized imports for the second half of 2025 (National Retail Federation), underscores the severity of the current market contraction.

Saia’s Strategic Response

Despite the downturn, Saia’s leadership focused on controllable factors, as Holzgrefe noted: “Our efforts to optimize our variable costs and improve our network efficiency contributed to this outperformance.” The company implemented measures such as streamlining operations, reducing fuel consumption, and enhancing terminal productivity to mitigate the impact of lower freight volumes. These efforts align with industry trends, such as the adoption of technology to improve efficiency, as seen with Southeastern Freight Lines’ investment in dimensioners for the NMFC overhaul (effective July 19, 2025). Saia’s ability to outperform expectations highlights the importance of proactive cost management and operational agility in challenging market conditions.

Broader Industry Context

The freight volume decline affecting Saia is part of a larger industry trend exacerbated by external pressures. The 145% tariff on Chinese imports, followed by a temporary 90-day truce reducing duties to 30%, disrupted supply chains, leading to a 30% cancellation rate for U.S.-bound shipments from China (Hapag-Lloyd) and a 60–70% drop in China export-import volumes (Evergreen Marine). Concurrently, ocean freight rates fell for five consecutive weeks, with Drewry’s World Container Index reporting a 2.6% drop to $3,762 per 40-foot container from Shanghai to Los Angeles (July 17, 2025). Rising diesel prices, reaching $3.758 per gallon in July 2025 (Transport Topics, July 15, 2025), further strained carrier margins. These factors, combined with a 0.3% decline in intermodal volumes in June (IANA), create a complex environment for LTL carriers like Saia.

Implications for LTL Carriers and Shippers

The depressed freight volumes have significant implications for the LTL sector, where carriers rely on consistent shipment flows to maintain profitability. Saia’s experience reflects the need for carriers to adapt to reduced demand while managing rising operational costs, such as fuel and labor. Shippers, meanwhile, face challenges in securing capacity and managing costs amidst tariff-driven disruptions and regulatory changes, like the NMFC overhaul’s new density-based classification system. The overhaul, requiring precise freight measurements, adds complexity to pricing and operations, making technology investments critical for compliance and efficiency. Gain Consulting helps clients navigate these challenges by implementing solutions like API-based tracking systems and optimizing freight classification processes.

Strategies for Resilience

Saia’s focus on cost optimization and network efficiency offers valuable lessons for the industry. Carriers can adopt several strategies to mitigate the impact of low freight volumes:

• Technology Integration: Implement real-time tracking and automation tools, such as API-based solutions, to enhance visibility and reduce manual processes

• Cost Management: Optimize fuel usage and terminal operations, leveraging real-time diesel price data ($3.758/gallon in July 2025) to identify cost-effective fueling strategies.

• Diversification: Explore intermodal options, despite the 0.3% June volume decline, to balance cost and capacity, as rail can offer savings over trucking in certain scenarios.

• Customer-Centric Operations: Prioritize service quality to retain customers, as Saia emphasized, ensuring reliability even in a downturn.

  
  

  Gain Consulting supports clients in deploying these strategies, tailoring solutions to address market-specific challenges and enhance operational resilience.

  
  

Gain Consulting’s Role in Supporting the Industry

At Gain Consulting, we specialize in helping LTL carriers and shippers thrive in volatile markets. Our expertise in supply chain technology, cost optimization, and regulatory compliance enables us to deliver solutions that mirror Saia’s proactive approach. For example, our API-based LTL tracking solutions, designed for clients like White Cap, integrate seamlessly with ERP systems to provide real-time visibility and streamline operations. We also assist with NMFC compliance, leveraging tools like NMFTA’s GetClassification.com to ensure accurate freight classifications. By analyzing market trends, such as those reported by Transport Topics and Drewry, we empower clients to adapt to declining volumes, rising costs, and regulatory shifts, ensuring long-term success.

Looking Ahead: Navigating 2025 Challenges

The freight volume decline, coupled with tariff disruptions and rising diesel prices, signals a challenging year for the logistics industry. Saia’s ability to outperform expectations through cost optimization and network efficiency demonstrates the value of strategic resilience. As the industry faces additional pressures, such as the NMFC overhaul and potential further tariff impacts, businesses must prioritize technology, data-driven decision-making, and operational agility. Gain Consulting is committed to guiding clients through these complexities, offering tailored solutions to enhance efficiency, reduce costs, and maintain competitiveness. Whether it’s adapting to market downturns or preparing for regulatory changes, we are your partner in navigating the road ahead.

Sources: Transport Topics, “Saia Posts Profit, Revenue Dip Due to Depressed Freight Volume,” Connor D. Wolf, July 25, 2025; Transport Topics, “US Container Volumes Set for Sharp Reversal Over Tariffs,” Brendan Murray, July 21, 2025; FreightWaves, “Drewry: Ocean Freight rates fall for fifth straight week,” Stuart Chirls, July 18, 2025; Logistics Management, “June intermodal volumes see a slight annual decline, reports IANA,” Jeff Berman, July 21, 2025; Transport Topics, “Diesel Price Nudges Up 1.9¢ to $3.758 a Gallon,” July 15, 2025.