LTL carriers refine pricing around freight characteristics

The less than truckload (LTL) market continued to operate under relatively stable conditions through October, with no significant change in overall capacity or freight demand. Beneath that stability, however, carriers are continuing to make incremental pricing adjustments.

Recent changes across the industry have included increases to minimum charges and select base rates, accessorials, high-cost-area surcharges, fuel surcharge programmes and compliance fees.

Rather than reflecting a sudden tightening of the market, these adjustments point to continued carrier focus on recovering higher operating costs and improving the profitability of individual deliveries.

The breadth of these changes is notable. Pricing adjustments are increasingly targeted toward freight that creates additional handling, equipment, compliance or network costs rather than carriers relying on broad rate increases.

This reinforces the importance of delivery characteristics and carrier network fit when it comes to the rates shippers pay. Rates for freight that is oversized or requires liftgates, inside delivery, redelivery, storage or other specialised services may rise more than rates for straightforward dock-to-dock deliveries.

Heading into year-end, the broader LTL market is expected to remain relatively stable, but the gradual firming in carrier pricing is likely to continue. For shippers, this makes carrier selection and freight optimisation increasingly important.

Rather than evaluating LTL options primarily on base rates, matching freight to carriers with networks that are well suited to the delivery can help balance service, reliability and total transportation cost.

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