A fundamental improvement in the industrial U.S.

Troubles in the Pacific Northwest dominated the news this week.

After five years of economic growth, less-than-truckload carriers are making progress toward rebuilding their profitability, a review of LTL carrier operating ratios shows.

April showered less-than-truckload carriers with freight, as shippers responded to a surge in consumer spending in March and increased industrial demand.

ABF Freight System, the less-than-truckload subsidiary of Arkansas Best, returned to profitability in 2013 and expects, with sister company Panther Expedited, to meet stronger demand in 2014.

It took months of bargaining-table wrangling and two rounds of voting, but ABF Freight System finally has its own national master freight agreement. The less-than-truckload carrier and the Teamsters sealed the deal on a five-year agreement in late October when a lone holdout region rejected a strike authorization.

After months of difficult negotiations over regional supplements, ABF Freight Systems has a new five-year contract with the Teamsters and a 7 percent wage cut, effective Nov. 3.

A federal court in late August left ABF Freight System with a clear choice: the less-than-truckload carrier could drop its struggle to wring $750 million in damages from the Teamsters union and YRC Worldwide, or try to appeal again after having its lawsuit challenging three rounds of union concessions at its competitor dismissed three times in as many years.

Teamster employees at ABF Freight System approved five regional supplements, but two side agreements are still on the table.

ABF Freight System and the Teamsters union extended their current contract through Aug. 31, as the less-than-truckload carrier and union work on supplemental agreements rejected last month by ABF’s Teamster employees.

Con-way Freight will raise its less-than-truckload base rates 5.9 percent on average June 24, along with minimum charges and accessorial fees.

FedEx Freight will raise its general tariff rates 4.5 percent on average July 1, following a route blazed by UPS Freight and ABF Freight System in May and June.

The leaders of about 160 Teamster locals approved a multiyear contract with ABF Freight System that will cut wages 7 percent in the first year of the contract.

The International Brotherhood of Teamsters blasted YRC Worldwide’s recent attempt to open acquisition talks with Arkansas Best, charging the less-than-truckload carrier with “interference in the collective bargaining process.”

Arkansas Best rejected an offer by YRC Worldwide, its largest unionized less-than-truckload rival, to purchase either ABF Freight System or the entire company.

Arkansas Best today reported a net loss of $13.4 million in the first quarter of 2013, improving from a net loss of $18.2 million in the first quarter of 2012.