Predicting LTL volume shifts: A game-changer for shippers
Predicting LTL volume shifts
Thanks to recent research sponsored by C.H. Robinson, in collaboration with MIT, it’s now possible to better predict when LTL volume shifts will occur, provided certain conditions are met. Whether you rely on C.H. Robinson to provide updates on when to expect a potential increase in volumes or utilize the outline parameters yourself, understanding future LTL volume trends can help identify potential opportunities to optimize supply chains, reduce costs, and improve service levels. For full details, visit the C.H. Robinson blog.
Carrier strategies for a tough LTL market
Despite a challenging freight market, carriers have managed to navigate the current market conditions by focusing on internal controls, such as managing operating costs and pricing freight effectively. This approach is set to continue, with LTL carriers announcing general rate increases in the mid-single digits. However, there may also be strategic pricing adjustments aimed at attracting new volume into networks in specific lanes with excess capacity.
Sustainability in the LTL industry
In recent years, LTL carriers have invested heavily in sustainability initiatives, including fuel-efficient vehicles, renewable energy, and optimized routing. These areas improve efficiency while acting in the best interest of customers, employees, and surrounding communities. Many carriers are part of the Environmental Protection Agency’s SmartWay program to monitor and improve transportation efficiency, and several publish their efforts in Environmental, Social, and Governance reports online.
Upcoming changes to the NMFTA classification system
In 2025, the National Motor Freight Traffic Association (NMFTA) is set to overhaul its freight classification system, specifically for commodities where density is the primary freight characteristic. These changes will standardize the classification process for density-based items and bring cost efficiency, as a wider class system will result in more accurate freight pricing.
Review your freight characteristics for impacted commodities and ensure pricing programs, especially those with freight all kind (FAK) exemptions, are addressed to account for any changes. Reach out to your C.H. Robinson representative to actively assess the impact of these changes. Full details can be found on the NMFTA website.