Less-than-truckload (LTL) shipping has experienced substantial growth in 2018 and is projected to progress into 2019. According to sources, LTL is expected to reach $40 billion in value at the end of 2018. With many different ongoing processes in the logistics industry, there are some changes expected to take place in the LTL shipping industry:
LTL will grow and increase in demand
The capacity crunch and extreme growth e-commerce are key drivers of LTL’s shipping development. If there are fewer trucks available for FTL, the extra freight will be consolidated to LTL loads when possible. There is also an increasing number of small businesses entering into the market so the need for small shipping services will rise. Since LTL shipping is more flexible than any other type of shipping, companies and individual shippers will rely on this service to match their needs. If the capacity crunch becomes a bigger issue, and there are many loads rejected or waiting, LTL will be there to help handle some additional shipping requests on the market.
The growth and expansion of LTL shipping possibilities is a hot topic in recent months. As the competition grows, LTL shipping providers struggle to stand out from their competitors. One of the key trends for LTL transportation is implementing new services and improving existing ones to attract more customers. Services can include online based platforms, shipment tracking, efficient last mile delivery and more to help enhance the customers’ experience.
Technology continues to affect the industry
New innovations ranging from the ELD mandate to self-driving vehicles, show that progress is irresistible and unstoppable. There are numerous opportunities in which technology can enhance the way carriers operate: connected devices, real-time tracking, blockchain, autonomous trucks, drone delivery, and online marketplaces for posting and finding loads. It is essential to keep up with the updates and efficiently utilize the new technology to stay relevant.
In conclusion, the LTL shipping forecast is sunny for 2019 and beyond, as it is expected to expand and evolve in many ways. The certain predictions about the rates and fuel costs will be made after the peak season ends, but the general expectations remain promising for carriers.