Surviving the Trucking Industry Slowdown

2 months ago
2Minutes

By Ahsan Ali

The trucking industry is in the middle of a long and tough slowdown, now in its third year. To survive, shipping companies are trying a new old trick: they’re focusing on making money on each shipment instead of just trying to move as much stuff as possible.

According to a new report from TD Cowen and AFS Logistics, this shift in strategy is especially clear when you look at two different types of trucking.

One type, called Less-than-Truckload (LTL), is for when many smaller shipments share one truck. LTL companies are doing surprisingly well by sticking to their prices. Even though they are moving fewer and lighter packages, they are making sure each delivery is still profitable. Experts say this is a smart move they learned from past downturns.

The other type, Truckload shipping, which is for moving a full truck of goods for one customer, is having a rougher time. There are simply too many trucks and not enough goods to move, which keeps prices low for customers.

Even though there are some good signs for the economy, like growth and a recent interest rate cut, it hasn’t been enough to help truckload carriers much. Their rates have been stuck at low levels for nearly three years.

The big takeaway? LTL companies are protecting their profits by being careful about what they charge, even when business is slow. Because of this, their prices have held steady for over two years. Meanwhile, truckload companies are still waiting for a real recovery.

Author Profile

Ahsan Ali

Ahsan Ali is a technology and business journalist who covers the latest developments in autonomous vehicles and innovative startups.

With a sharp eye for industry trends, he breaks down complex tech stories into clear, engaging insights for general readers.