The State of LTL

Good News for Less Than Truckload Shipping

The news on the LTL front has been a mixture of good, bad and ugly. The good news, LTL carriers are investing in new equipment, expanding terminal locations and pushing internal growth initiatives that address the industry driver shortage. Carriers such as Old Dominion, FedEx and others are investing now, which has dynamically changed the top ten LTL carrier base from ten years ago. The super-regional and regional carriers that are financially sound see the current economy as an opportunity to increase market share.

Bad News for LTL Growth

The bad news has been the uncertainty in the LTL market with Roadrunner seeking financial reorganization, upcoming Teamster negotiations with YRC Freight and the financial strength of smaller LTL carriers to maintain service level as the larger carriers seek additional markets. Depending on your outlook, the good and bad is the investment in the smaller LTL carriers that may service one state or rural region. The investment is through acquisition by a larger LTL carrier or private equity that will be expecting growth. Growth in LTL is synonymous with service degradation.

The Ugly News: Limited Sizes for LTL Shipments

The ugly news for shippers has been the revised rules and tariffs that are limiting the size of LTL shipments. LTL Carriers have been scrambling to limit shipment sizes as shippers feel the lack of truckload capacity and ship larger shipments on LTL carriers. For LTL carriers, this typically translates to a lower yield per hundredweight, and network congestion that leads to poor service performance and decreased productivity within their network. The next year will give us a good indication if Roadrunner and YRC can maintain competitiveness to keep their capacity available to shippers. Any carrier disruption caused by bankruptcy would severely strain LTL capacity.

Contact Us Today to Get Started with LTL Services

The team at Rockfarm Supply Chain Solutions keeps up to date with the latest LTL shipping news, giving your company a competitive advantage in your supply chain. To learn more or get started with our services, call us at 815.573.0155 or fill out our online form and a representative will be in touch.

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By Brad Stewart

Co-Founder, CCO

Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena.  As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.

“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”

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