Less-than-truckload (LTL) carrier Saia Inc. saw its freight volume return to year-over-year decline territory in August.

The Johns Creek, Georgia-based company reported Friday that August freight volume fell 2.2% year-over-year, reversing July's 0.9% year-over-year growth. The August volume decline resulted from a 2.2% year-over-year decrease in shipment count partially offset by a 0.1% year-over-year increase in weight per shipment.

Saia Inc. (NASDAQ: SAIA) was among the carriers with the most significant market share gains following Yellow Corp.'s bankruptcy in July 2023, but its streak of year-over-year volume growth ended in May after running for 22 consecutive months. The company faces challenging year-over-year comparisons in the mid-single to low-double digits for the remaining four months of the year.

(However, Saia's two-year stacked comparisons for the third quarter to date remain positive, with both July and August showing 6% growth.)

Beyond difficult comparisons, Saia faces challenging macroeconomic headwinds.

Manufacturing, which accounts for nearly two-thirds of LTL freight volume, contracted again in August according to data released Tuesday. The Purchasing Managers' Index (PMI) registered 48.7 (with 50 being the expansion threshold), marking 32 months below the expansion line over the past 34 months. (This data typically leads LTL freight volume inflection points by approximately three months.)

The PMI new orders subindex, a leading indicator of future activity, returned to expansion territory at 51.4 after six consecutive months of decline. However, this remains below the 52.1 threshold that reports indicate is necessary for sustained manufacturing order growth.

SONAR: Long-haul LTL monthly cost per hundredweight, 50-65 index

The LTL monthly index is calculated based on median cost per hundredweight across four national trucking classification groups and five different mileage ranges. For more information about SONAR, click here.

Saia did not adjust its third-quarter margin expectations in Friday's report.

During its second-quarter earnings call in late July, the company indicated that its operating ratio (inversely related to operating margin) typically deteriorates 100 to 200 basis points from the second to third quarter annually. The company expects this year's sequential deterioration to be only 100 basis points, implying an operating ratio of 88.8%, representing a 370 basis point year-over-year deterioration. However, the company noted that its outlook could face an additional 75 basis point headwind due to potential employee compensation increases under consideration.

Saia will experience some relief from yield comparison pressures in the second half of the year, and the company continues to price contracts with mid-single-digit year-over-year increases. (Saia does not provide revenue-based metrics such as yield or revenue per shipment in its monthly updates.)

In the second quarter, Saia's operating ratio improved 330 basis points sequentially as newer terminals became more profitable and the company implemented other cost-reduction measures. Terminals operating for less than three years achieved operating ratios of approximately 90% in the second quarter, a significant improvement from breakeven levels in the first quarter.

Saia shares rose 5% in early Friday trading, while the S&P 500 gained 0.5% during the same period.