The United States' less-than-truckload (LTL) shipping industry is currently facing a period of significant demand, fueled by a resurgence in industrial output and a constrained truckload market. This combination is empowering LTL carriers to enforce greater price discipline, resulting in increased costs for shippers.
For freight forwarders and operations managers, this trend indicates that LTL freight budgeting will require careful attention. Expect less flexibility in rate negotiations and potentially longer lead times for securing capacity. Forwarders should advise clients to book LTL shipments further in advance and explore consolidation opportunities where possible to mitigate rising costs. The tightening market also suggests that service levels might be impacted, making reliable carrier partnerships even more crucial.
