President, ARCBEST CORP
Runser: Customers want nimbleness, visibility, and great communication
Seth Runser, President of logistics firm ArcBest, says 50% of clients ship as usual, while others pivot amid tariffs. He emphasizes ...
About Seth Runser
Seth Runser, president of logistics company ArcBest, said in a June 2025 interview that about 50% of the company's customers are shipping as usual while others are adjusting their supply chains in response to tariffs and other macroeconomic conditions. He stated that some customers have used inbound warehousing to delay tariff costs and that a manufacturer of kitchen components moved its production from Italy to the United States, with ArcBest partnering to help them navigate the American market. Runser said that after meeting with large customers, he identified three priorities: customers want logistics providers that are nimble, offer enhanced visibility into their supply chains, and communicate well. He noted that ArcBest's deal pipeline had increased roughly 55% since the start of the year, which he attributed to customers seeking a logistics partner during a period of ongoing disruption.
Transcript (6 segments)
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Frank0:00
Let's bring in Seth Runser, president of logistics company Arcbest. Seth, good morning. Good to see you.
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Seth Runser0:04
Good morning, Frank. Good to see you too.
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Frank0:06
All right. So surveys are one thing. You actually have your finger on the pulse. You're talking to your customers. So what are your customers telling you? Are they rushing to bring some more things in, not only for back-to-school shopping season and for the holiday season, or are they waiting?
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Seth Runser0:20
Yeah. So our customers, they're really facing challenges across the board with everything that's going on in the macro. And we have the solutions and expertise to help. So our approach to customers has always been to pivot quickly, adapt. And with offering multiple modes of transportation, robust capacity, we're able to respond to those needs. So it's really been kind of a mixed bag out there. We have a group of customers who are kind of in this wait-and-see mode, trying to determine if they're going to make long-term or short-term changes. We have another group where they've taken advantage of some inbound warehousing, and what that does is really avoid the tariffs until the product actually moves. And we've seen some of those warehouses start to empty out. With the 90-day pause, we have another group of customers who've shifted to domestic manufacturing and supplier options. And then there's really just a big group of customers who it's business as usual, not having really material impact on them. So when I think about the last five years, it's been kind of continual disruption with the pandemic and weather events and geopolitical concerns, all those different things. And we've been in business over 100 years, so we work to navigate those supply chain challenges with our customers. And a good success story: I actually heard we had a company who manufactures commercial and residential kitchen components, and they were based in Italy, and they actually moved their manufacturing over to the United States. So we partnered with them. They trusted us to handle their business. We've developed a great relationship where now it's a win-win. But a lot of these customers who are kind of bringing this domestic manufacturing, they don't know how to navigate the American market.
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Frank1:54
In all fairness, though, I think the majority of companies are not ready to shift all their manufacturing or just haven't had the time to do so. So I think the majority are still importing from Asia and other places. So I want to go back to that group of customers that you said is business as usual. What percentage of your customers would you describe in that category? And just for the audience, your primary business is truckload trucking. That's where a customer, like a big box store, fills up the whole truck with electronics, soap, paper towels, whatever it is, they want to fill up the whole truck. And I know you have a number of customers in that big box space as well. So what do they do?
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Seth Runser2:28
Yeah, I would say we're kind of a mix. We do a lot of LTL business, truckload business, expedite business. And then we have a managed solutions department as well. I was at an event with some of our largest customers about two or three weeks ago, and there were really three key themes that emerged from those conversations. The first was customers want to work with a logistics company who can be nimble to what's going on, whether they're going to shift manufacturing or reorder supply chain or try to get those containers from China, whatever it is. The second really wanted enhanced visibility. They wanted to see what was going on in their supply chain. And then the third was really great communication. Things change; they want to be able to talk to you and have open communication channels. So when I look at our deals coming through the pipeline, we're up about 55% since the beginning of the year. So that tells me customers are looking to partner with a logistics company who can help them throughout this challenging time. But we have over 30,000 customers, so we have a pretty good broad view of what's going on out there. So as far as percentages go, I would say it's probably about 50% or more.