Less-than-truckload (LTL) carrier Saia has cut transit times and expanded into new lanes by opening 70 terminals since 2017 — a buildout CEO Fritz Holzgrefe told FreightWaves is still in its "early innings."
Network buildout since 2017
FreightWaves reported that the carrier has opened 70 terminals since 2017 as part of a deliberate, multiyear organic expansion. Since 2023 alone, Saia added close to 40 new locations and replaced or relocated another 30 facilities. Holzgrefe said no other LTL carrier has matched that pace in the same period. The buildout made transit lanes possible that Saia could not previously offer:
"Customers are coming to us and say, 'Oh, fantastic, you can now get my freight from Trenton, New Jersey to Texas markets in 3 days.'"
That three-day lane, Holzgrefe said, is a direct result of the denser footprint. "We are early innings of tapping the full potential of this business," he added, noting the roughly 40 facilities opened since 2023 have not yet reached the profitability or density levels the company believes they can achieve.
The 102-year-old carrier's expansion traces back to 2017, when Saia began pushing into the Northeast, and accelerated when a competitor exited the LTL market, creating what Holzgrefe described as a generational real estate opportunity that helped the carrier speed up its terminal acquisition pace. Holzgrefe, who previously served as Saia's CFO before moving into the CEO role, said the transition gave him a fuller view of how sales, operations and financial discipline interconnect.
Atlanta metro and market share gains
The network strategy coincided with market share gains in Saia's own backyard. Holzgrefe said the carrier added two terminals in the Atlanta metro following a customer-proximity model and has doubled its market share there over roughly five years. Saia's current operating ratio stands at 86. Holzgrefe said that figure understates performance in the carrier's longer-established facilities and that the company has significant room to improve returns across its newer terminals.
Pricing, wages and customer sentiment
On pricing, Saia pushed through a general rate increase in July. Holzgrefe described customer reaction as largely in line with expectations — frustration with inflation but acceptance tied to service quality. "Customers are like, 'You're doing a great job. We don't like the inflationary nature of what you're having to do, but at the same time, we understand,'" he said.
The carrier also issued two wage increases over the past year, delaying the first to Oct. 1 before returning to its normal schedule with a July 1 increase. Holzgrefe framed the raises as a necessary investment in retaining what he called the best team in the business.
Customer sentiment surveys Saia conducts each quarter show sustained optimism heading into the second half of the year. After the first quarter, customers expected the back half to strengthen — and that view had not changed in the survey conducted after the second quarter, Holzgrefe said. He sees shippers moving from gauging market conditions to actively selecting which LTL partners they want to grow with.
Network milestones at a glance
| Metric | Figure | Basis |
|---|---|---|
| Terminals opened since 2017 | 70 | Holzgrefe interview with FreightWaves |
| New locations added since 2023 | Close to 40 | Holzgrefe interview with FreightWaves |
| Facilities replaced or relocated since 2023 | About 30 | Holzgrefe interview with FreightWaves |
| Atlanta metro market share | Doubled in roughly five years | Holzgrefe interview with FreightWaves |
| Current operating ratio | 86 | Holzgrefe interview with FreightWaves |
| Trenton, N.J., to Texas markets | 3 days | Holzgrefe interview with FreightWaves |
Implications for shippers and operators
For freight forwarders, 3PLs and shippers evaluating LTL capacity, the Saia expansion means more origin-destination pairs are now reachable inside shorter transit windows, at least on lanes such as Trenton to Texas. The 30 facilities replaced or relocated since 2023 also signal a network in physical transition. Holzgrefe's comments that newer terminals have not yet reached full density suggest service levels on new lanes will continue maturing as volume builds. The July general rate increase and two wage hikes in the past year point to cost pressure that LTL carriers are passing through to customers, with Holzgrefe telling FreightWaves shippers accept the increases when service quality follows.
Watch list
- Saia's quarterly customer sentiment surveys heading into the second half, which Holzgrefe said remain optimistic.
- Whether the roughly 40 terminals opened since 2023 move toward the profitability and density levels Holzgrefe cited as the company's goal.
- How the July 1 wage increase and July general rate increase affect Saia's operating ratio and pricing in the coming quarters.
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