Less-than-Truckload Performance in July 2021
July 2021 - Transportation Market Report
Top news of the month was that TL mega power Knight/Swift purchased regional LTL carrier AAA Cooper. This was the 2nd large acquisition into domestic LTL in the past 3 months. All signs point to M&A being a major player in the transportation world for the next several months. We believe this will include all modes, not just TL and LTL. Signs indicate this to be true as we also saw Uber Freight purchase Transplace this month in the managed transportation space.
What's Happening in LTL?
• Driver shortages still the main concern.
• Carriers are highly focused on driver recruitment and retainment.
• Equipment shortages becoming equally concerning. Trailer manufacturers are unable to keep up with demand and receivers/consignees are tying up spotted equipment too long due to their own manpower issues.
• It’s been reported that several facilities at various carriers are having to stage freight outside in the yard due to the abundance of freight and shortage of equipment.
• Studies show that pay may catch applicants’ attention, but benefits are just as important to today’s drivers – medical benefits, home time, quality of equipment, and working conditions are equally important. Quality equipment was listed as the top priority for the 6ht straight quarter.
• Several LTL carriers are looking to expand existing facilities and purchase land to build additional facilities to create more capacity.
• Most LTL carriers are reporting service numbers well below where they were 12-18 months ago.
• Rate increases and accessorial adjustments being implemented to cover inflated operating costs driven by increased wages, sign on bonuses, retention bonuses, referral bonuses, elevated overtime numbers, and expansion.
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