The 2:00 Minute Warning

Yesterday I had the opportunity to be on a panel at the Journal of Commerce’s outstanding Inland25 conference. This is an outstanding event since you get to hear from senior executives from virtually every mode in the transportation sector.

While the presentations addressed many different issues, there was one common attribute that hung over the entire conference. Specifically, shippers, carriers, 3PLs and everyone in North America is dealing with uncertainty that is affecting supply chains.

As if the tariff situation wasn't a big enough issue, we are now having to live with the shutdown of the United States government. Add it all up and you see this uncertainty being played out in different ways. For example, when you see big carriers like UPS and JB Hunt suspend financial guidance because the future is so unclear, it helps you understand what their expectations are in negotiating rates with their customers.

Our panel addressed the LTL outlook for 2026. During the session we looked at what’s happening now and what to expect in the future. On the plus side, the LTL carriers are “defending their turf.” Specifically, they are using rates to protect their density in critical lanes. Shippers that have freight moving in these critical lanes have leverage in their rate negotiations with their carriers.

Two other issues are affecting the LTL market. First, additional capacity in the LTL sector is being added as the carriers bring on the terminals that they acquired from Yellow. Absent an increase in demand, rates are expected to stay soft in the LTL sector. Second, the spin off of FedEx Freight in 2026 will likely influence the market.

Wrapping it up, during our discussion I noted that when you are taking a vacation and traveling, one of the things that you do is to check the weather. That is why we encourage shippers to “check the supply chain weather” and look at the factors that could affect their supply chains.

One of the most important tools to use in checking the weather is scenario planning. For companies willing to look at things strategically, an effective scenario planning exercise can help them use their supply chain to increase sales and reduce costs. And with TranzAct’s LTL assessment, companies can be more proactive in addressing LTL issues and making the type of changes that reduce their supply chain costs by as much as 10% - 12% each year.

We’re here to help and encourage you to get in touch to learn more about how to manage your LTL freight operations and costs. We have strong relationships with LTL carriers as attested by numerous awards such as the Customer Excellence Award we received from Estes earlier this year. And we are proud of how these partnerships with carriers have helped our customers in managing their LTL costs. To learn more, give me a call at 630-833-0890 Ext 190, send me an email or schedule a meeting.

P.S. In case you missed our webinar last week, we encourage you to watch the recording. 

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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