Surface Transportation

M & A wave redrawing regional US LTL map By William B . Cassidy

The US less-than-truckload ( LTL ) market is entering a new phase of consolidation in early 2025 , with regional LTL trucking companies leading the charge by building greater density and reach .

The action is hottest in the Midwest , where Holland — a regional subsidiary of Yellow — shut down in 2023 , leaving a vacancy in the LTL market that has not been filled . The market needs LTL carriers that can provide premium on-time , next-day service at scale across the region stretching from Ohio and the Great Lakes to the Great Plains .

As merger and acquisition ( M & A ) activity develops , shippers may see regional LTL pricing stabilize or rise , but not drop , as larger carriers impose more disciplined pricing in local and regional markets .

Although the LTL landscape may appear crowded , “ there is still room in the market for good carriers ,” said Mike Moran , president of Moran Transportation , a regional LTL provider based in Chicago . Moran acquired RMX Freight Systems in October , adding three Midwestern states to its LTL network .

Pitt Ohio Transportation Group ’ s purchase of Sutton Transport , completed Jan . 1 , is the latest in a string of acquisitions , the terms of which were not disclosed . Sutton , with 13 terminals across eight states , will bolster Dohrn Transfer ’ s 10-state network , a separate Pitt Ohio company headquartered in Rock Island , Illinois .

“ The trend moving forward is going to be increased growth and scale of LTL operations ,” said Geoffrey Muessig , chief marketing officer for Pittsburgh-based Pitt Ohio .

Wisconsin-based Sutton will help Pitt Ohio build greater density within Dohrn ’ s market footprint , speeding freight and maintaining fluidity as demand grows — as expected in 2025 .

“ In the regional LTL market , density improves service and results ,” said Muessig . “ We saw the opportunity to combine the strengths of the Sutton and Dohrn networks .”

Pitt Ohio will employ a “ three-pronged ” approach to the integration , blending sales first , then technology and ultimately operations , Muessig said , adding , “ We ’ re going to take our time .”

More M & A ahead

The Pitt Ohio-Sutton purchase won ’ t be the last significant LTL M & A deal this year , according to Satish Jindel , LTL freight and parcel market consultant .

“ Count on at least three smaller regional LTL carriers folding into bigger ones in 2025 ,” said Jindel , president of transportation research firm SJ Consulting Group , which helped broker the Pitt Ohio-Sutton transaction .

Jindel pointed to the Moran-RMX deal , as well as Knight- Swift Transportation Holdings ’ purchase of Dependable Highway Express last July , as examples of the trend . The Pitt Ohio-Sutton deal is the latest development reshaping LTL

US truckload spot rates rising , but shippers keeping lid on contract pricing

By William B . Cassidy

Investment in visibility and other supply chain software has dwindled since the COVID-19 pandemic . Shutterstock . com

US truckload spot rates exceeded seasonal expectations toward the end of 2024 as capacity contracted amid holiday demand . So far , however , the increase in transactional rates hasn ’ t translated into larger gains in contract pricing early in 2025 .

The new rate differential reported by DAT Freight & Analytics , a measure of the difference between new dryvan contract rates and the rates they replace , was negative 0.7 % in the week that ended Jan . 6 . That figure has been moving up or down about 1 % for several months .

“ We haven ’ t seen a significant shift in shipper pricing power ,” Dean Croke , principal analyst for DAT , told the Journal of Commerce . “ Replacement contract rates aren ’ t increasing , but they ’ re getting closer to parity . We ’ re at this point of equilibrium .”

The Journal of Commerce average shipper-paid spot rate , inclusive of all surcharges , rose to $ 2.28 per mile in December on a weighted basis , up 8 cents per mile from November and 2 cents from December 2023 . On an

40 Journal of Commerce | February 3 , 2025 www . joc . com