Estes Express Lines Tonnage Growth Driven by Manufacturing

Estes Express Lines recorded a 15% year-over-year tonnage increase last week. The performance highlights a broader trend of supply-side freight growth across the network, which has translated into real hiring gains and improved load factors.

Growth fueled by manufacturing and regional demand

Volume growth was driven by manufacturing, particularly truck and automotive, alongside groceries and retail. The carrier's next-day, regional business is its fastest-growing segment.

In the third quarter, next-day shipments increased 13% year over year. The rest of the Estes network grew 2.5% year over year in the same period.

Calendar timing and supply-side trends amplified results

The tonnage increase was part of a broader trend of supply-side freight growth. A calendar shift also created favorable comparisons for the reported week.

Wednesday of that week fell at the end of the month rather than on a Tuesday as it did a year ago. This shift helped as shippers rushed to hit quarterly numbers.

Low turnover and workforce strength underpin performance

Estes cited low driver and dock worker turnover as a key factor enabling lasting customer relationships and structural advantages. Driver turnover for employees with at least one year of tenure is 7.5%. Dock worker turnover after one year is 11.5%.

Webb Estes stated, "I really believe it comes down to our people." The company believes these lasting relationships are an advantage difficult for competitors to replicate.

Technology upgrades and future outlook

Estes Express Lines plans to announce pay raises and new benefits for its workforce within the next month. The carrier is also launching a technology upgrade where shippers will soon be able to track freight moving on a live map.

Existing tools already surface driver name, equipment details, stops-away count, and lane-level on-time performance at the quoting stage. Webb Estes said the visibility upgrade is intended to reinforce customer confidence: "The visibility is not just for the answer in the moment, but also for them to know, hey, Estes has it."

Rising credit card debt and elevated diesel prices are flagged as risks to consumer staying power. Estes Express Lines plans to announce pay raises and new benefits for its workforce within the next month.