{"id":1717,"date":"2015-03-19T13:31:19","date_gmt":"2015-03-19T13:31:19","guid":{"rendered":"https:\/\/cantruck.ca\/ltl-profit-revved-revival\/"},"modified":"2025-01-10T16:51:53","modified_gmt":"2025-01-10T16:51:53","slug":"ltl-profit-revved-revival","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/ltl-profit-revved-revival\/","title":{"rendered":"LTL Profit Revved for Revival"},"content":{"rendered":"<div class=\"col-lg-8 col-md-8 col-sm-8 pm-single-post pm-content-sidebar-width-right\">\n<article class=\"post-4639 post type-post status-publish format-standard hentry category-business tag-capacity tag-economy tag-freight-rates tag-freight-volume tag-ltl tag-profit pm-single-post-article\">\n<div class=\"pm-single-post\">\n<div class=\"pm-single-post\">\n<div class=\"pm-single-post-content\">\n<p>Strong industrial and retail economy, as well as tightness in capacity due to the lack of any new entrants in the past 10 years, has the once-beleaguered LTL sector poised for one of its best profit years since at least 2004, industry executives and analysts told <em>Logistics Management<\/em> magazine.<\/p>\n<p>\u201cFor the foreseeable future, pricing is more important than volumes,\u201d James Welch, CEO of YRC Worldwide, told LM. \u201cWhat\u2019s going to be interesting with fuel prices dropping, will that improve consumer spending and tighten capacity even more? It\u2019s too early to tell. But there\u2019s a lot of emphasis on base rate adjustments matching price with a shipper\u2019s particular volumes.\u201d<\/p>\n<p>Furthermore, the methodology by which LTL carriers are charging for their services is about to change, states LM. Major LTLs are in the process of implementing dimensional pricing \u2013 or, \u201cdim pricing\u201d\u2014to charge more by the volume a package takes up in a trailer as well as its weight and distance traveled.<\/p>\n<p>\u201cWe\u2019re the only piece of the transportation industry that doesn\u2019t price by dimension,\u201d Welch said. \u201cOcean, air, parcel, they all do it that way. We\u2019re trying to get ourselves ready. We are gathering the phases together.\u201d<\/p>\n<p>\u201cAt the end of the day, what are we selling? It\u2019s space on a trailer. Dim pricing is the best way to sell. I don\u2019t know precisely when the LTL industry will convert, but I have to think it\u2019s coming.\u201d<\/p>\n<p>David Ross, trucking analyst for Stifel Inc., said\u00a0 that continued tightness in truck capacity means LTL margins should again increase in 2015. The one risk of higher rates is that some freight could gravitate to third-party logistics companies (3PLs), Ross said. Those third parties control as much as 20 percent of LTL freight already, and have enjoyed considerable pricing power over the past few years.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Strong industrial and retail economy, as well as tightness in capacity due to the lack of any new entrants in the past 10 years, has the once-beleaguered LTL sector poised&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16],"tags":[30,21,166,306,136,307],"class_list":["post-1717","post","type-post","status-publish","format-standard","hentry","category-business-conditions","tag-capacity","tag-economy","tag-freight-rates","tag-freight-volume","tag-ltl","tag-profit"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/1717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/comments?post=1717"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/1717\/revisions"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=1717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=1717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=1717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}