The landscape for less-than-truckload (LTL) shipping has undergone significant shifts in capacity and costs, and more change lies ahead in 2025.
The closure of Yellow, which accounted for nearly 10% of the market’s capacity, reshaped the LTL network for the first time in over a decade. Now that the most strategic of their terminals have come back online under new owners, it added capacity back into a soft market and carriers are looking for more freight.
At the same time, LTL shippers are dealing with rising cost pressures. General rate increases (GRIs) for small to mid-size transactional customers are at historic highs, analysts anticipate contractual rates will climb 1.6% to 5% in 2025 and accessorials have been growing on top of that.
Here are three critical actions LTL shippers should prioritize for success in the year ahead:
Rebid strategically
With contractual rates expected to remain on the softer side through at least the first half of the year, the time to re-bid your LTL freight is now. Especially if you relied on Yellow as the low-cost provider, you may have had to go with whoever could take your freight after Yellow’s abrupt shutdown. Carriers looking for new freight in 2025 may be inclined to offer more aggressive pricing.
Shippers should also look to LTL carriers that offer the right combination of capacity, service, and price. The carriers that picked up Yellow terminals may have shut down other terminals, realigning their network in ways that give you more or less capacity where you need it and potentially affecting service levels.
Diversification is key. Building the right portfolio of carriers allows shippers to maximize efficiency and limit the impacts of rate hikes now and the possible risk of tighter capacity later in 2025. Third-party logistics providers with extensive carrier relationships can offer a strategic advantage.
Stay ahead of accessorial fees
Fees for things like over-dimensional freight, delivery to congested areas or residential drop-offs have become more prevalent, rising from one in 10 shipments pre-pandemic to nearly four in 10 today. Fewer shippers are being exempted from accessorials, carriers are more disciplined in applying these fees to higher-cost freight, and carriers have more data and technology to properly assess them.
Shippers hoping to proactively manage their accessorials can work with their third-party logistics provider to better predict them with artificial intelligence. For instance, analyzing pick-up and drop-off locations in advance can help identify the carrier best equipped to handle your freight while minimizing surprise costs.
Smart planning and technology can also improve communications with carriers, helping to avoid delays or last-minute charges for temporary storage and redelivery attempts. The goal: know and contain your accessorial costs.
Prepare for freight classification changes
July 2025 will bring changes to the National Motor Freight Classification (NMFC) system for LTL freight. This overhaul will replace the current classification structure that groups freight based on four key traits with a new density-focused system.
These updates could lead to dramatic changes in locked-in LTL rates, making it critical for shippers to identify how their goods will be affected. Your workflows, data and technology systems may also need to be updated to reflect the new standards—and avoid costly errors.
Learn more about the NMFC classification changes and begin conversations with your logistics provider now to ensure a seamless transition.
C.H. Robinson manages more LTL shipments than any 3PL in North America and has the largest network of LTL carriers in North America. Read more about our LTL services, including expedited and temperature-controlled shipping and LTL consolidation.
