LTL rate increases emerge in a soft market

The Less-Than-Truckload (LTL) market continues to operate under soft conditions, with many carriers reporting declines in tonnage, volume and even revenue. In response, carriers are prioritising cost control and focusing on moving profitable freight.

Several carriers have announced general rate increases (GRIs) in the mid-single digits. While it may seem counterintuitive to raise rates in a sluggish market, these increases are driven by higher operating costs including labour, insurance and equipment as well as ongoing investments in their network aimed at improving service quality and competitiveness.

GRIs primarily affect shippers without contractual pricing agreements. Shippers with more transactional freight are advised to review their current LTL agreements and consider locking in contractual rates where possible to mitigate the impact of GRIs and ensure consistent service throughout the year ahead.

Table of Contents