The freight market is undergoing a significant shift as rising truckload prices push shippers toward less-than-truckload (LTL) solutions. LTL carriers consolidate freight from multiple shippers into a single trailer, making them a cost-effective option for shipments that don't fill a full truckload. Brad Hadley, Vice President of National Accounts at Saia — one of the largest publicly traded LTL carriers in the United States — discussed this trend, Saia's record Q2 tonnage performance, and the carrier's strategic investments in terminals and talent programs during an interview with FreightWaves at the Univar Solutions Carrier Kickoff event in Chattanooga, Tennessee.

Saia recorded its best quarter ever for tonnage in Q2, according to Hadley, who attributed the milestone to a broader mode shift that began around the start of Q2. Tightening truckload capacity and rising truckload rates have pushed shippers to move half-load freight back onto LTL networks. This type of mode shift is a well-documented dynamic in freight cycles: when truckload rates rise enough, shipments that sit near the boundary between full-truckload and LTL become economically viable to move through LTL networks instead.

"Capacity's tightened, truckload prices have increased," Hadley said. "Shipments that might have been half loads that were cheaper for customers to move via truckload have now shifted back to the LTL side." Average shipment weights at Saia have climbed alongside the volume gains, he added.

Hadley framed the surge as the payoff for an aggressive infrastructure build. Over the past two years, Saia has deployed $1.6 billion in capital expenditures — a significant share of revenue for a company generating more than $3 billion annually. That spending has funded 70 new terminal openings over seven years, plus the relocation or expansion of an additional 26 terminals. Terminal density is a critical competitive factor in LTL, since a tighter network of service centers reduces linehaul costs and improves transit times.

"We've basically been in a 4-year freight recession. And what we've seen happen in Q2, we think is going to continue. And as I mentioned before, it's kind of what we've been building towards," Hadley said.

Pricing and Cost Pressures

On pricing, Hadley said LTL carriers are moving to recapture rates after years of margin pressure. Equipment costs alone have climbed sharply, with a single tractor now running $140,000 to $160,000, while insurance costs have also risen materially. Saia intends to ensure it is "paid fairly" by customers who may have taken advantage of the soft market, while continuing to honor long-standing partnerships such as its roughly 15-year relationship with Univar Solutions.

Julie Vandekamp, one of the FreightWaves hosts, emphasized that carriers must be profitable to maintain safe equipment and quality drivers. "For carriers to be compliant and safe and have safe equipment and have quality drivers, they have to be profitable," she said.

Selective Freight Strategy

To protect profitability as volumes grow, Hadley said Saia is being selective about the freight it pursues. The carrier targets shippers that engage across multiple service lines, including a white-glove final-mile logistics division called Saia Logistics that operates in Florida. Hadley also noted that Saia recently opened a Saia Logistics international office in Chattanooga — two blocks from the Westin where the Univar event was held.

Saia values consistency in its customer relationships, Hadley explained. Customers who frequently switch lanes between carriers to save small amounts may actually increase operational costs by forcing adjustments to driver headcount and linehaul operations, he said.

Dock-to-Driver Program

On the driver supply side, Hadley highlighted an internal program called dock-to-driver, in which high-performing dock workers are sponsored through CDL training at Saia break terminals at the company's expense. The terminal manager nominates dock workers who demonstrate good attendance, strong freight handling, and interest in becoming CDL drivers. The trucking industry has faced a persistent, well-documented driver shortage for years, making internal pipeline programs an increasingly common retention strategy among large carriers.

"We pay for everything," Hadley said. Participants are sent to one of Saia's break terminals where they receive training and coursework, earn their CDL license, and then return to their home terminal. The program reduces turnover and ensures the carrier knows the background of every driver it places on the road.

Vandekamp noted that the first 30 days are typically when carriers lose the most new drivers, making Saia's internal pipeline particularly valuable.

Investment in Technology and Expansion

Saia recently launched a platform called REV, aimed at expanding the services and visibility the carrier offers its customers. Hadley said the initiative builds on Saia's long-standing reputation for reliability and autonomy in service.

When asked about Amazon's growing logistics presence, Hadley acknowledged Amazon as "a great company" with significant financial backing, but emphasized that Saia remains focused on its own operations and improving service for its customers.

Recognition and Partnership

Saia received Univar's Superior Excellence in Service and Partnership award at the event. Hadley credited the recognition largely to Univar's collaborative approach, noting that Univar does not treat carriers as a commodity but as partners in its success.

"Whether it's the different people there — Kyle or Dean or whoever that we're working with — they let us know where the need is. We let them know what we can do, but we'll also communicate openly if there's certain issues we might be having or other opportunities that we might see," Hadley said.

Hadley, who has been with Saia for 19 years, attributed his longevity at the company to its culture and continued investment. "We're betting on the future of our company because of our people for our customers," he said. "We are positioned so well for what we see coming with the increase."

Source: FreightWaves