Surface Transportation networks while helping to broaden the sector ’ s role in supply chains from ports to last-mile delivery .
LTL carriers are broadening their retail , warehousing and specialized services and adding more port transloading business . As shippers work to shorten distances between distribution centers , suppliers and end-customers , LTL carriers see more opportunity to expand beyond their industrial base .
The LTL market is already highly consolidated , with the 40 largest LTL providers in the US and Canada claiming 84 % of total LTL revenue of $ 62.2 billion in 2023 , according to SJ Consulting data . The largest Midwestern LTL provider , Dayton Freight System , has about 70 terminals throughout the region and more than $ 1 billion in annual revenue .
The 40 largest LTL providers accounted for 84 % of total LTL revenue in 2023 . Shutterstock . com
Pitt Ohio was the 13th largest LTL provider by annual revenue in 2023 , while Sutton was 31st , according to the Journal of Commerce Top 40 US and Canadian LTL Carrier rankings , prepared by SJ Consulting . Combined , the companies would have brought in more than $ 1 billion in revenue for the year .
“ The top 10 LTL carriers [ by revenue ] are getting bigger , the top 20 are all aiming to get into the top 10 and everyone else is scrambling to get into the top 20 ,” Muessig said .
Larger LTL players have been more focused on growth through real estate purchases , particularly the ongoing auction of hundreds of terminals once operated by Yellow . The bankrupt company still has about 100 leased or owned terminals to auction or sell .
Rising operating costs , including the need for more sophisticated technology , are putting more pressure on smaller LTL carriers to find larger partners or purchasers .
“ I think there ’ s absolutely going to be more consolidation as the time goes on ,” Moran said .
Many smaller carriers “ are not pricing the freight right ,” he said , meaning setting rates at too low a margin . “ After a period of time , they simply can ’ t survive . They need a way out , and an acquisition is one .”
For that reason , he thinks more regional mergers may be good for the LTL sector in the Midwest and elsewhere , with larger firms imposing more disciplined pricing .
“ There ’ s a need for carriers that can provide excellent service at an acceptable price ,” Moran said . “‘ Acceptable ’ is a challenging term at times , depending on whether you ’ re a carrier or a shipper , but there ’ s plenty of room out there for good-quality carriers .”
email : bill . cassidy @ spglobal . com unweighted basis , the rate jumped 9 cents sequentially and 3 cents year over year to $ 2.45 per mile .
For both monthly averages , December was the highest level since March 2023 . The averages are based on data from more than 4,000 lanes provided by Cargo Chief , DAT Freight & Analytics , Loadsmart , and shipper and broker surveys . The weighted average excludes certain non-typical lanes .
Transactional dry-van rates paid by brokers to carriers followed a similar trend , rising 7 cents to $ 2.11 per mile , including fuel , in December and another 7 cents to $ 2.18 per mile in early January , according to DAT .
The weekly US average dry-van rate from load board operator Truckstop . com hit $ 2.18 per mile , including fuel , on Jan . 6 , up 18 cents from Nov . 4 and 5 cents from the same week in January 2024 .
Slight hikes
Those spot market gains represent increases from the lows set during the two-and-a-half-year freight downturn , and they haven ’ t bled through to contract rates . Croke expects dry-van spot rates to drop in February but said winter storms could slow that decline .
“ We ’ re having back-to-back storms , and the next one is expected to affect the I-40 trucking corridor ,” he said . “ Those storms are going to affect the spot rate forecast .”
Shippers have told DAT and the Journal of Commerce that they are receiving “ slight ” increases in annual contract bids , reporting annual truckload contract rates in bids are either flat or up only by low single-digit percentages .
That is different from their expectations back in October , when truckload executives said they were planning for rate hikes in the 4 % to 6 % range . However , the freight demand needed to sustain those higher pricing levels has yet to materialize .
Without underlying non-seasonal demand , the spot rate increases through the end of 2024 were attributed to seasonal holiday shipping demand and tightening truck capacity .
The number of carriers exiting the market jumped in December , leading to a net loss of 2,100 carriers for the month , according to data from the Federal Motor Carrier Safety Administration . Prior to December , net exits had shrunk to about 330 carriers .
Senior Editor Ari Ashe contributed to this report .
email : bill . cassidy @ spglobal . com www . joc . com February 3 , 2025 | Journal of Commerce 41