LTL pricing

FedEx prepping LTL unit ahead of spinoff

FedEx continues to pretty up the nation’s largest less-than-truckload business, FedEx Freight, ahead of a 2026 spinoff. However, a lackluster industrial complex continued to present a headwind during its recent fiscal quarter ended Feb. 28.

Revenue at FedEx Freight declined 5.3% year over year to $2.09 billion as tonnage fell 7.6% and revenue per hundredweight, or yield, increased just 2.2%. The tonnage decline was the combination of a 4.7% decline in shipments and a 3.1% decline in weight per...

https://www.freightwaves.com/news/fedex-prepping-ltl-unit-ahead-of-spinoff

Is Amazon on course to upend LTL industry?

The less-than-truckload industry may face a seismic shift as rumors circulate that e-commerce behemoth Amazon is preparing to expand operations as a for-hire LTL carrier.

LTL markets — already grappling with tepid demand and pricing pressures — now confront the specter of a formidable new entrant. Recent data suggests that the industry is approaching an inflection point where carrier pricing discipline could begin to erode.

Amazon’s strategic maneuvering toward LTL capabilities is evidenced by...

https://www.freightwaves.com/news/is-amazon-on-course-to-upend-ltl-industry

LTL pricing discipline may not hold, report says

Less-than-truckload pricing appears in need of the next catalyst, according to a report from 3PL AFS Logistics and financial services firm TD Cowen. The update classified LTL rates as steady but noted “some indication carrier pricing discipline may start to crack” as demand remains tepid.

The industry got a reprieve from the freight recession in the summer of 2023 when the nation’s third-largest LTL carrier, Yellow Corp. (OTC: YELLQ), shut down. With the industrial economy in its third year of a...

https://www.freightwaves.com/news/ltl-pricing-discipline-may-not-hold-report-says

LTL carriers waiting for next demand catalyst in post-Yellow world

Less-than-truckload carriers are hoping an end to a two-year industrial recession will provide a needed volume uptick and bring about a more favorable freight mix. A positive inflection will also allow carriers to fill terminals acquired following Yellow Corp.’s exit.

Yellow’s (OTC: YELLQ) July 2023 shutdown put roughly 8% market share up for grabs, providing the industry with a respite to an ongoing freight recession. However, the newfound volume was quickly absorbed, and the industry is again...

https://www.freightwaves.com/news/ltl-carriers-waiting-for-next-demand-catalyst-in-post-yellow-world

LTL general rate increases buck pricing concerns for industry

Less-than-truckload carrier Old Dominion Freight Line announced Monday a 4.9% general rate increase across multiple tariff codes effective Dec. 2. The GRI announcement follows similar price actions from other carriers in recent weeks, tamping down concerns that the industry is losing its ability to pass through rate increases two years into an industrial recession.

Carriers typically implement GRIs to general tariff codes annually. The stated percentage increase is an expected average of changes...

https://www.freightwaves.com/news/ltl-general-rate-increases-buck-pricing-concerns-for-industry

What’s involved in an RFP for an LTL shipper?

The more detail an LTL carrier has the more accurate your pricing will be.

RFPs in the less-than-truckload industry have changed significantly in recent years. The days of just providing shipment weights, volumes and lanes are gone. For shippers to get an accurate upfront quote, they need to provide much more detailed information.

For a carrier, the main cost drivers are space, time and risk, according to Curtis Garrett, VP of pricing and carrier relations at Recon Logistics.

The space component looks at cubed space and how loaded or dense the cube is. Also,...

https://www.freightwaves.com/news/whats-involved-in-an-rfp-for-an-ltl-shipper

Saia’s 7.5% GRI latest in string of 2022 LTL rate hikes

LTL pricing continues to step higher

Less-than-truckload carrier Saia Inc. announced Tuesday a 7.5% general rate increase (GRI), which will apply to general tariff codes. A press release noted that select accessorial and minimum charges will be impacted as well. The changes went into effect Monday.

Carriers typically use GRIs to adjust base rates on an annual basis. The increases vary by lane and weight class. The announced percentage increase is the expected average change the GRIs will have. The increases are used to offset cost...

https://www.freightwaves.com/news/saias-75-gri-latest-in-string-of-2022-ltl-rate-hikes

Yellow logs February tonnage decline; LTL recovery appears intact

Industrial data suggests LTL tonnage dip in February a blip

Less-than-truckload provider Yellow Corp. (NASDAQ: YELL), formerly YRC Worldwide, announced Monday tonnage fell 5.5% year-over-year in February following a 2.5% increase in January. Revenue per hundredweight, or yield, was up 6.3% in February, significantly higher than the 1.8% increase in January.  

The Overland Park, Kansas-based carrier’s tonnage reversal was largely due to severe winter storms, which impacted operations at 215 of the company’s 327 freight terminals. A press release said...

https://s29755.pcdn.co/news/yellow-logs-february-tonnage-decline-ltl-recovery-appears-intact

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