The less than truckload (LTL) industry was up in 2018, experiencing growth over 2017. This growth is projected to continue in 2019.
The demand for LTL services has been driven in large part to the continued growth of e-commerce. As more and more product-based businesses abandon traditional brick and mortar storefronts in favor of internet-based sales avenues, so will the need to ship these goods increase. Additionally, because of e-commerce, heavy startup costs aren’t what they used to be. This is enabling growth in small business startups; further fueling demand.
Truck driver shortages in the face of this increased shipping demand are also weighing heavily on the industry. With fewer drivers and FTL trucks available, businesses and 3PL’s will be relying on LTL to help consolidate and move freight in 2019.
Increased Demand Means Increased Competition and Potential Rate Hikes
As the demand for LTL rises, so will new businesses offering LTL services. Like any in-demand industry, companies will look to acquire or build new transportation businesses as an attempt to capture whatever percentage of market share they can.
It’s capitalism in action, but LTL clients should be wary of these new 3PL and LTL companies as they won’t likely have established and tenured relationships with carriers, nor will they be equipped to handle many of the issues which arise when shipping LTL. This increased competition, however, will force existing 3PLs and LTL shippers to expand service offerings to clients in order to separate themselves from their competitors.
While not as extreme as 2017, LTL clients can expect some rate increases throughout 2019. To learn more about why, read here.
Partner with a 3PL Who Knows LTL
As a 3PL with over 20-years of LTL and shipping experience, Amware knows LTL. Whether it’s sourcing carriers for shipments, tracking LTL shipments, or managing claims on lost or damaged freight, Amware can do it all.
Additionally, Amware is a company who has been looking toward the future since day 1. Knowing then that clients would want and need additional services, Amware has met that demand by offering not only freight shipping services, but also warehouse and supply chain logistics services.
Amware’s newly updated LTL software platform; Amrate, helps clients source, track, and manage LTL shipments in the cloud or as an integrated part of their ERP or logistics management systems.
The forecast for LTL in 2019 is generally positive, indeed, so partner with a 3PL who’s going to be able to help you manage your LTL shipments in what is sure to become an even more crowded space this year. For a free 30-day trial of Amrate, click below and see why you’ll needn’t look any further for your LTL shipping solutions.