LTL rates to continue increasing in Q2 while TL rates expected to stay low

From Yahoo Finance.: 2025-04-08 15:39:00

Less-than-truckload rates surged over 60% in Q1 compared to 2018, while truckload rates remained low. LTL pricing is expected to stay strong in Q2. Carriers focused on profitable lanes, relationships, and reliable freight. LTL carriers saw a slight increase in yields, despite declining volumes in the first two months of 2025.

Cost per LTL shipment rose 1.5% sequentially in Q1, mainly due to annual rate hikes by carriers and a 3% increase in fuel prices. The report also cited a 2.4% decrease in length of haul and a 0.2% dip in weight per shipment. TL rates were only 5.9% higher than in January 2018, impacted by various factors.

TL rates are expected to dip slightly in Q2 but remain higher y/y. Ground parcel rates were 31.3% above the 2018 baseline in Q1, with express parcel rates only up 3.4%. Uncertainty around tariffs and the macroeconomic outlook are influencing market sentiment. AFS Logistics CEO highlighted the continued soft demand in transportation markets.

AFS Logistics, a non-asset-based 3PL, offers cost management services and freight brokerage. The company has insights into over $39 billion in annual freight spend. LTL rates are projected to rise y/y in Q2, while TL rates are expected to stay low. Market conditions remain uncertain due to tariffs and economic factors.



Read more at Yahoo Finance.: LTL rates projected to keep rising y/y in Q2, TL rates to stay ‘at the bottom’