Less-than-truckload (LTL), which is often referred to as less-than-load (LTL), is a form of shipping service that is used for transporting tiny loads or amounts of freight. Less-than-truckload services are provided by a variety of companies, including huge national parcel carriers as well as specialized logistics providers like YRC Freight, Estes Express Lines, and ABF Freight System, amongst others.
Post-pandemic, the LTL Transportation industry anticipates a substantial increase in requirements and demand as a result of increased urbanization and the growing need for efficient use of space. As a result of the outbreak, the LTL Transportation industry is among the most severely impacted by supply chain disruptions, technology event cancellations, and office closures.
North America will dominate the global LTL Logistics Market
When the North American market grows closer to the cost of operations, investment in new and used tractor purchases tends to taper off. There is still a chance that fleets will buy more recent tractors in an effort to reduce the average age of their fleet, but this is likely to result in a degree of stagnation or even shrinkage. Either the economy will start producing more freight or the amount of active capacity will decrease to the point where profitability for carriers will return to a level that is sufficient to support investment and expansion. This takes place during the portion of the cycle that follows the spot market's bottoming out at the expected cost of operations per mile.
The regional carrier segment will grow at a steady rate in the period of interest
Regional Carriers are continuing to accept delivery of newly ordered trucks, and they have already begun putting orders for 2023. Because of the aging of fleets during the previous two years, transportation companies require newer cars in order to lower their costs of operation and maintenance, improve their fuel efficiency, and attract and keep drivers.
The SME segment will dominate the global LTL Logistics Market
The LTL logistic market is extremely beneficial to the SME sector. The vast majority of small businesses spend less money on freight and ship a smaller quantity of items than their larger counterparts. LTL shipping makes it possible for small businesses to take advantage of the services that are provided by professional shipping without having to pay the high fees that are associated with paying for space that is not used.
A compound annual growth rate of 4.3% is expected for the period of 2022-2029, which will result in the worldwide LTL logistics market reaching a total valuation of 20.76 billion USD.
Trucking businesses that specialize in less-than-truckload (LTL) shipments are responsible for handling smaller, palletized shipments and transporting freight for several customers using a single tractor-trailer. Drivers are responsible for picking up shipments, driving them to terminals, and loading them onto linehaul trucks en route to their final destinations. A method of unloading and transferring similar to this one is utilized so that deliveries can be finished. This indicates that a significant number of people handle LTL shipments between the shipper's dock and the entrance of the receiver's location. To successfully complete each shipment, at least three truck drivers are required.
LTL stands for "less-than-truckload," which refers to a transportation service for loads or quantities of freight that are significantly smaller than those carried by a full truck. There are many huge national parcel carriers as well as specialist logistics firms that offer less-than-truckload services. These services are able to meet the shipping requirements of a vast number of companies, particularly those who frequently need to transfer smaller quantities of goods. The economies of scale offered by less-than-truckload shippers allow for the reduction of the freight costs associated with individual shipments.
LTL carriers make it their specialty to optimize their loads in order to move more goods for more clients in the most time and cost-effective manner possible. LTL shipping is popular among shippers because it offers a variety of benefits, including cost efficiency, environmental friendliness, and flexibility. However, shipping via LTL might be quite difficult at times.
The practice of shipping via LTL results in a lower total number of vehicles carrying full loads as opposed to a higher total number of trucks carrying loads that are less than their capacity. The decrease in the number of vehicles that are required to transport goods to their final destinations results in a smaller number of emissions and a smaller carbon footprint for your organization.
The following companies are some of the most successful competitors in the global LTL Logistics market: Nippon Express, Kuehne Nagel International AG, Deutsche Post DHL Group, United Parcel Service Inc., Freight Line Inc., Allcargo Logistics Ltd., Old Dominion, FedEx Corp., DEPPON LOGISTICS Co. Ltd., Estes Express Lines, and XPO Logistics Inc.
- Because of a robust freight market, customer acquisition costs have never been lower, whereas driver acquisition costs have never been higher. Multiple expense categories will increase in 2021 and beyond.
- Despite these challenges, the LTL industry is poised for growth through 2021 and beyond. Embracing technology and digitization is the best way to prepare for the future.
LTL Logistics Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2029||USD 20.76 billion.|
|Growth Rate||CAGR of 4.3% during 2021-2029|
|Segment Covered||By Type, By End- User, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Nippon Express, Kuehne Nagel International AG, Deutsche Post DHL Group, United Parcel Service Inc., Freight Line Inc., Allcargo Logistics Ltd., Old Dominion, FedEx Corp., DEPPON LOGISTICS Co. Ltd., Estes Express Lines, and XPO Logistics Inc.|
Key segments in ‘Global LTL Logistics Market’
By Type, 2019-2029 (USD Billion)
- Long Haul Carriers
- Regional Carriers
- Superregional Carriers
By End-User, 2019-2029 (USD Billion)
- Large Enterprises
By Application, 2019-2029 (USD Billion)
- Energy & Mining
- Industrial & Manufacturing
- Food & Beverages
- Pharmaceuticals & Healthcare
By region, 2019-2029 (USD Billion)
- North America
- The United States of America
- The United Kingdom
- South Korea
- South America