LTL Players Eye Freight Market Turnaround, Industrial Upturn

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Substantial change is expected in the U.S. less-than-truckload sector in 2025, according to market observers and executives, headed by the long-awaited freight market turnaround.

An evolutionary repositioning of the LTL market’s largest player, FedEx Freight; opportunities from recent and further Yellow terminal purchases; and changes to the National Motor Freight Classification system are also all on the slate.

American Trucking Associations projected Jan. 16 that after two years of declines, freight volumes are expected to grow 1.6% in 2025.

“There’s a thing called stagflation. That’s where the economy is shrinking, but inflation is high or accelerating. It’s a terrible place for a broader economy to be. But that’s exactly where we’ve been in trucking. Freight levels down, freight rates down, costs up. That is stagflation. That is a terrible place to be,” ATA Chief Economist Bob Costello said during a December Transport Topics Newsmakers event.

“Things are going to get better in ‘25 than they were in ‘24,” said Costello, adding: “I am not talking about a return to a boom … I’m really talking about normal. And what is normal? Normally, truck freight volumes go up 1.5% to 2% a year.

“LTL is still tough. That’s in large part because the manufacturing base has been a little lackluster,” he said.

Some Top 10 LTL carriers are positive about the coming year’s industrial sector prospects though.

“We do expect to see a pickup in the industrial economy. … So, certainly, from a shipment count perspective, we see the opportunity for growth there a…