ArcBest's second-quarter earnings reveal a significant 650 basis point improvement in its asset-based division, well above the company's typical seasonal gain of 300 to 350 basis points. CEO Seth Runser unpacked how the Fort Smith, Arkansas-based integrated logistics company achieved these numbers, sharing insights into market demand signals, brand consolidation, and a new digital platform — all while leveraging a legacy spanning more than a century.

The asset-based LTL operation posted an operating ratio approaching 90%, improving roughly 650 basis points sequentially from the first quarter. In the LTL sector, where operating ratios below 90% are generally considered healthy and the most efficient carriers operate in the low-80s range, that marks a notable shift. The asset-light division produced just over $6 million in operating income in Q2 — more than four times the $1.5 million the segment generated for all of 2023 — as tightening truckload capacity pushed more shippers toward ArcBest.

"When you look at centurion companies, companies that have been around more than 100 years, really the two things that stand out: it's a great culture and it's the willingness and adaptability to change," Runser told FreightWaves.

ArcBest was founded in 1923 and has operated through multiple economic cycles, including the post-deregulation shakeout that eliminated most of its pre-1980 LTL rivals. Runser took over the ABF LTL division in 2021 at the height of the pandemic.

Demand Outlook: Supply-Driven Recovery with Early Bright Spots

On the demand outlook, Runser was measured. He noted that the Institute for Supply Management's Purchasing Managers' Index has held in expansion territory — above 50 — for five to six months after four years of contraction, and that the company's sales pipeline remains strong. However, he stopped short of calling it a demand-led recovery, pointing instead to supply-side dynamics — particularly truckload capacity tightening — as the primary driver of improved LTL volumes. The 2023 collapse of Yellow Corporation, formerly the third-largest U.S. LTL carrier, removed significant capacity from the market and redirected freight to remaining carriers industrywide.

"We're not anywhere near like a mid-cycle or even an upcycle. It's really supply-driven," Runser said. "Customers are trying to navigate as truckload capacity tightens. They're looking to logistics companies like ArcBest to help them navigate all those different disruptions."

Bright spots include data center construction and ATV shipments, while apparel remains soft. Demand is uneven across subsectors, Runser noted. Heavier shipments above 10,000 pounds are beginning to migrate back into LTL networks — an early-cycle signal Runser described as encouraging but still modest.

"We're starting to see those early signs of those plus 10,000-pound shipments making their way back into our network. They just work better in an LTL environment," he said.

Asset-Light Segment: Significant Progress

The asset-light division posted a 28% revenue increase, a 15% increase in daily shipments, and an 11% to 12% increase in revenue per shipment. Runser attributed the improvement to initiatives outlined at ArcBest's Investor Day in September in New York City.

"If you look at what happened in asset-light in the second quarter, we produced a little bit over $6 million in operating income. When you compare that to all of 2023, we only made $1.5 million. That shows you the progress on all the initiatives that we outlined," Runser said.

The truckload brokerage business — anchored by the Molo acquisition, a Chicago-based digital freight brokerage ArcBest acquired in 2021 — originally complemented an in-house truckload offering generating roughly $300 million to $400 million in revenue from largely transactional customers. ArcBest serves approximately 30,000 active customers whose biggest spend is truckload.

Runser said the company is now in "the second or third inning" of its asset-light buildout, with significant runway remaining. Long-term partnerships with carrier networks have helped the company avoid feeling the capacity crunch too acutely.

Brand Consolidation: One ArcBest

ArcBest recently consolidated its sub-brands — including Molo and Panther — under the single ArcBest name, a move Runser tied directly to customer and employee feedback.

The company began positioning itself as an integrated logistics provider in 2017, growing through acquisitions and organic investment. The brand simplification removes the cost and complexity of maintaining separate marketing budgets and go-to-market teams across four distinct brands.

"We really focus on three strategic pillars: growth, efficiency, and innovation. We don't have to spread out our advertising dollars among four different brands. We don't have to have different teams and different swag," Runser said.

Customer reaction has been positive, with some saying the change was "long overdue." Runser noted that in conversations about the rebranding, customers told him, "We already thought Panther was ArcBest — and that's because it was."

The Panther business, acquired approximately 17 to 18 years ago, will be folded into ArcBest as part of a broader "premium logistics" offering that includes temperature-validated shipments and Department of Defense work, not just traditional expedite services.

ArcBest View: A New Multimodal Digital Platform

To support the unified brand, ArcBest launched ArcBest View, a multimodal digital platform roughly three to four years in development. The tool allows customers to track, book, quote, and optimize shipments across all modes in a single interface — a departure from the company's prior website, which Runser said was built around an LTL-only model. The launch places ArcBest among a growing number of freight providers investing in unified digital portals as shippers increasingly expect Amazon-style visibility across complex multimodal supply chains.

"We started building that platform side by side with customers from the very start. If you build it side by side with partners we've had for 10, 20, 30 years, they're going to tell you what's going to work," Runser said.

About 2,500 active customers have already signed up. Runser said early feedback describes it as the best supply chain visibility tool users have encountered.

"Some people have described it as, 'Hey, it's just a refresh of arcb.com,' and it's not. It is a completely new digital platform that I think is differentiated in the marketplace because now you can track, book, do all of those things across all modes," he said.

Leadership and the Molo Integration

On the asset-light leadership front, ArcBest hired Mack Pinkerton to run the division. Pinkerton previously led C.H. Robinson's NAS product, which Runser identified as the largest freight broker in the United States.

Regarding the Molo acquisition, Runser explained that customers had been telling ArcBest its truckload offering needed strengthening. Molo filled that strategic gap and brought a service-first mentality that aligned with ArcBest's premium brand.

"What Molo brought and what was really attractive about them was, A, it filled a strategic gap for us because our customers were asking for truckload services, and B, what they built was really a service-first mentality. That's what ArcBest is known for," Runser said.

The company is past the integration phase with Molo, Runser confirmed.

A Centurion Company's Formula for Survival

ArcBest was ranked number 12 on the Transport Topics Top 100 in 1980. Runser reflected on what has enabled the company to survive when most of its pre-deregulation competitors — including Roadway, Consolidated Freightway, Yellow, PIE, and others — did not.

"We always say internally, we have to focus on disrupting ourselves because if we don't, someone else will," Runser said. "We're not thinking about next month or this quarter or next quarter. We're planning 3, 5, 10 years out."

Runser emphasized that the company remains focused on technology, AI, and innovation while staying close to customers.

"Disruption is the new normal. And if you prepare and build the company on a great foundation, you're always focused on the future. Good things will happen, and that's really what we've done at this company and what makes us so special," Runser said.