Surface Transportation coming on that ’ s starting to be delivered as we speak ,” Runser said .

“ We can hold on to some of the older [ trucks ] if we see demand come on or we can optimize and get rid of those high-cost units , and we ’ ve been doing a good balance as we move through this year ,” he added .

Large US LTL providers have grown their fleets by double-digits since 2019 . Jon Tetzlaff / Shutterstock . com

Efficiency creates capacity

Some new LTL equipment is replacing older tractors , rather than expanding capacity . LTL companies are bringing down the average age of their tractors , reducing maintenance costs and adding more fuel-efficient vehicles and even alternate-fuel models .

“ When I think about capacity ... it also comes down to efficiency ,” Runser said .

“ We ’ re seeing some of the best efficiency numbers in three years because of our investments . The more efficient you are , the more capacity you have for growth .”

The LTL ground isn ’ t level across the sector , however . While some companies are adding terminals and equipment , fueled in part by freight once hauled by Yellow , others are expanding more modestly , if they ’ re adding to their fleet counts at all .

Old Dominion Freight Line ( ODFL ), the second-largest US LTL provider , cut its tractor count 4.3 % to 10,791 in 2023 . The LTL freight market , absent the Yellow distortion , remains soft in the first half of 2024 , company officials said during their latest earnings call .

The company plans to spend $ 325 million on tractors and trailers this year , compared with $ 386 million in 2023 .

But ODFL has been expanding its terminal network and fleet for years . The long-term ODFL strategy is “ pre-investment ahead of the growth curve ,” CFO Adam Satterfield said .

Even with its dip in truck numbers in 2023 , ODFL ’ s tractor count was 17 % higher last year than in 2019 , before the COVID-19 pandemic .

“ We don ’ t feel the need to go out and chase volume , which many of our competitors have done in the past ,” Satterfield said , adding that too much new capacity can hamper growth .

email : bill . cassidy @ spglobal . com

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