What’s new in LTL shipping?
The less-than-truckload (LTL) shipping industry has made headlines recently, with stories about new service center openings and upcoming freight classification changes. These developments can leave companies wondering if they need to adjust their strategies — and how and when to act if so.
Continue reading for insight into these changes and how you may be affected by what’s happening.
Carriers are acquiring and opening locations left by Yellow
Even though Yellow Corporation (commonly referred to as YRC) exited the market in July 2023, LTL shippers and carriers are still feeling some impact. This is no surprise when you consider that YRC operated more than 300 terminal locations across North America and was considered the third-largest LTL carrier in the U.S. by average daily shipments.
In the 15 months since their departure, 163 former Yellow properties have been sold or leased to other carriers, with more available for purchase this month. Many of those have been modernized and reopened — but overall capacity is still down since most of Yellow’s capacity is no longer operational.
Plus, while many carriers have taken over and opened Yellow facilities, they’ve often closed their previous locations in those same markets. This means the net increase in capacity isn’t as high as the full door count of the new facilities. Despite this reduction in capacity, the impact has been offset by the current macroeconomic environment.
Struggling to find a carrier in your lanes? Use these tips to find LTL capacity.
The NMFTA announced freight classification changes for 2025
The National Motor Freight Traffic Association, Inc (NMFTA™) is set to introduce significant changes to the National Motor Freight Classification (NMFC) system in 2025. According to Keith Peterson, NMFTA’s Director of Operations, the new system prioritizes simplicity by using a standardized approach based on density, handling, stowability and liability.
For LTL shippers, these changes promise several advantages:
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Increased accuracy. With a more straightforward classification system, there will be fewer classification errors.
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Reduced invoice and audit issues. Fewer classification errors mean fewer invoice discrepancies and audit problems.
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Time savings. Less time spent correcting clerical issues means more time to focus on your business.
How to prepare
To ensure a smooth transition, the NMFTA is implementing these changes in phases. You can view their guide for a complete look at what’s coming, and work with your provider to understand how the changes may shape your shipments.
ArcBest is aware of these announcements and will stay in contact with customers as the changes roll out.
Want to discuss your LTL strategy?
Curious about what's driving change in the LTL market and how you can stay one step ahead? Reach out to ArcBest. With both asset-based and asset-light LTL solutions, we’ve got the flexibility and industry expertise to make sure your freight moves efficiently.
