LTL carriers report mixed earnings results
As common carrier LTL providers publish their Q3 earnings, the data show mixed results from slight declines to modest growth in carrier revenues. The industry faces headwinds from increased costs with muted delivery volume and declined tonnage.
In response, carriers are focusing on efficiency and pricing discipline to mitigate these challenges with a fair amount of success. This trend is expected to persist, but with former Yellow terminals reopening in the coming months and continued market uncertainty, we may see more strategic pricing adjustments aimed at securing new volume within their networks.
Looking ahead to 2025, the National Motor Freight Traffic Association (NMFTA) is planning to make major changes to their freight classification system, specifically to commodities where density is the primary freight characteristic. These changes will standardise the classification process for density-based items and bring cost efficiency, as a wider class system will result in more accurate costing of freight.
C.H. Robinson is reviewing and engaging with customers affected by these changes. Shippers should review their freight characteristics for affected commodities and ensure their pricing programmes, especially those with Freight All Kind (FAK) exemptions, are addressed to account for any changes. More information can be found on the NMFTA’s website, but feel free to keep in touch to your C.H. Robinson account team with questions.