PART 1 OF A NEW SERIES
Lately I’ve had the opportunity to share what’s happening in the logistics industry and how shippers can reduce their LTL costs through several outlets.
At the TPM conference, I raised a few eyebrows when I described current LTL pricing as… irrational. Then, I was interviewed by Jeff Berman for the Logistics Management podcast and by Adrian Gonzalez for his Talking Logistics series. And most recently, I shared my thoughts in a blog in Logistics Management.
One key question I’ve addressed is: Can companies really reduce their LTL costs right now? The short answer is simply yes, but it takes insight and effort to arrive at that point.
Why Reducing LTL Costs Matters Right Now
LTL and truckload don’t operate in isolation and instead can have a large influence on each other. When pricing shifts in one mode, freight often migrates to the other where possible.
For nearly four years, we’ve been in a historically long truckload recession that began around the summer of 2022. Although we’ve heard it before, there are once again signs that may be ending. And when it does, truckload carriers will likely push for aggressive rate increases to recover lost margins and offset rising costs.
When truckload pricing rises, pressure tends to ripple into LTL. That’s why this multi-part series is so important right now.
LTL Operates Very Differently Than Truckload
Let’s take a look at some key differences between LTL and truckload.
In the LTL market, the top 30 carriers control roughly 91% of the market. In truckload, the top 30 carriers account for only about 12–15% of capacity. When it comes to LTL shipping, you’re working within a highly concentrated network environment.
This group of carriers has been getting better at tracking and evaluating their customers. This is necessary since their network is built on fixed terminal routes, tight schedules and multiple stops per load.
And for LTL carriers, density is key since it drives profitability. It’s one of the primary reasons behind the recent NMFC classification changes. Those changes are aligning pricing more directly with shipment density and that can significantly impact what you pay.
If you don’t understand how your freight fits into a carrier’s network math, you’re negotiating in the dark.
What Should LTL Shippers Be Doing?
First, stop assuming that yesterday’s sourcing playbook still works. Along with the market changes, carrier expectations and pricing behaviors are changing.
This year especially, it’s especially important to understand:
• How your freight impacts carrier density
• Where your shipments create friction (or efficiency)
• Whether you’re truly a “shipper of choice”
These aren’t theoretical considerations, they are ones that can directly affect your rate outcomes. In 2026, carriers are making smarter, more data-driven decisions about the freight they want. And that makes it important for shippers to do the same.
Looking for Help?
If you’re interested in improving your LTL strategy, you don’t have to figure it out alone. At TranzAct, we’ve sourced billions of dollars in LTL freight and our proprietary sourcing methodology can help.
To get in touch, just send us an email, give us a call at 630-833-0890, or schedule a conversation.