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TFI reports remarkable turnaround of UPS Freight in Q2

Newly minted LTL division hits 90.1% OR as company targets low-yield shippers

TForce Freight is moving past its days as UPS Freight. (Photo: TFI International)

TFI International (NYSE:TFII) handily beat analysts’ expectations in the second quarter as the Canada-based trucking and logistics company’s turnaround of UPS Freight — now TForce Freight — moved ahead at a breathtaking pace. 

TFI reported adjusted net income of $137.2 million, or $1.44 per diluted share, on $1.83 billion in revenue. Analysts expected the company to earn $1.05 per share on $1.54 billion in revenue. 

The strong performance came from across TFI’s businesses. But the biggest surprise came from TForce Freight, which achieved an adjusted operating ratio of 90.1% in its first two months of ownership by TFI. When TFI acquired UPS Freight, it aimed to bring the carrier’s operating ratio from 99% — barely profitable — to below 96% in the first year.

While the second quarter has traditionally been the strongest for UPS Freight, CEO Alain Bedard told financial analysts that TFI has been aggressively implementing its plans to rid the carrier of low-performing freight. 


“​We’re not in the business of hauling freight just for the pleasure of hauling freight,” he said.

TFI is ridding itself of the “freight that does not fit,” Bedard said.

“I mean we can’t haul a shipment with revenue of less than $100,” he said. 

TForce’s performance has dramatically exceeded the bar set less than two weeks ago. Only July 13, TFI announced that it expected TForce Freight to achieve an operating ratio below 95% during the quarter. 


The company offered some clues in its financial results, saying it “has identified hundreds of low yield accounts and has already implemented actions on selected accounts to increase the quality of freight, with a focus on freight that fits the network and the company can serve efficiently.”

It suggests that TFI’s plans to target underperforming freight — which it laid out after closing the $800 million deal — are well underway. Even considering the highly favorable U.S. LTL market, the performance is still remarkable considering that UPS Freight struggled to be profitable. 

TFI’s LTL division, now its largest operating segment, brought in $481.5 million in revenue during the quarter. Operating income came in at $202.6 million, which included a $122.9 million bargain purchase gain from the acquisition of UPS Freight. 

The company reported growth across its other business segments, with double-digit increases in revenue and operating income.

TFI U.S. LTLQ2/21
Shipments (in thousands)1424
Weight per shipment1039
Tonnage (in thousands)740
Revenue per hundredweight$27.22
Revenue per shipment338.29
OR%90.1%

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3 Comments

  1. Lanny

    I just hope the carriers maintain their pricing discipline this time and ignore the idiot that decides they want to haul for free again and the brokers who prey on carrier’s best intentions.

    1. Eddie Elmost

      The article is about UPS. What they should do is hire the over paid guy who was running UPS freight before, obviously he wasn’t trying very hard.

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Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at [email protected].