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XPO Logistics Announces Four New Technology Initiatives for Less-Than-Truckload Optimization

XPO Logistics expects to generate approximately $100 million in incremental operating profit over the next two years from proprietary less-than-truckload technologies.

Page 2 · Latest LTL Posts

Thomasville, N.C.-based Old Dominion Freight Line (ODFL), the number three less-than-truckload (LTL) carrier by revenue, said today that it has made upgrades to six of its 233 national service centers so far this quarter.

For YRC Freight, its largest operating unit, tonnage per day fell roughly 3.8% in July on an annual basis, and tonnage per day in August, was down 3.1%.

The Thomasville, N.C.-based carrier reported that LTL tons per day increased 9.7% in August on an annual basis, which it said was driven by a 10% increase in LTL shipments per day. The 10% gain, though, was slightly offset by a 0.3% decrease in LTL weight per shipment. And on a quarter-to-date period through September 5, the company said LTL revenue per hundredweight was up 12% annually.

YRC, which controls long-haul YRC Freight and LTL regional carriers New Penn, Reddaway and Holland, reported a slight dip in second quarter net income of $14.4 million on $1.33 billion revenue, compared with net earnings of $19 million on $1.26 billion revenue in the year-ago quarter.

Second quarter revenue was up 16% annually to $4.36 billion, and quarterly net income attributable to common shareholders coming in at $137.5 million, which topped $47.6 million for the same period a year ago.

Learn about the 35th Annual Quest for Quality Award winners for Regional Less-than-truckload (LTL) Carriers.

Total revenue, at $1.033 billion saw a 23% annual gain, with LTL services revenue up 23.2% to $1.018 billion.

There is another challenge in the LTL sector that directly impacts LTL shippers not getting what they need from carriers, with carriers widening embargoes on shipments in certain parts of the United States.

It’s been a summer of labor success at United Parcel Service. Besides scoring a “handshake agreement” covering 275,000 Teamsters at its small parcel unit, UPS also has a tentative deal for a new five-year Master UPS Freight Agreement that covers about 11,000 Teamsters-represented UPS Freight (formerly Overnite Transportation).

The lines between 3PLs and brokers are blurring while carriers move into the space; and shippers are considering whether to outsource their freight or use a dedicated fleet.

As we have for the past 29 years, the Logistics Management editorial team has devoted a large portion of our July issue to putting context around the “Annual State of Logistics Report (SoL)”—and we continue to do so for good reason.

Less-than-Truckload plays a pivotal role in the smooth operation of the supply chain, and companies that play the game well by aligning with the right carrier and technology partners know that LTL shipping is an extremely valuable transportation option.

Whether conducting an LTL RFP with the intent to manage transportation spends or increase provider options, a professional bid application adds structure to the process, resulting in improved efficiency, reduced risk of errors and quicker bid turnaround times.

As you face capacity issues and rising freight rates, download this Making the Case report to learn how to optimize your LTL operations and get more strategic with your carrier and provider partners.

Taking the calculation, complexity, and cost out of LTL shipping.