Less-than-truckload (LTL)

Less-than-truckload (LTL)

Global Less-than-truckload (LTL) Market to Reach US$365.5 Million by 2030

The global market for Less-than-truckload (LTL) estimated at US$259.9 Million in the year 2023, is expected to reach US$365.5 Million by 2030, growing at a CAGR of 5.0% over the analysis period 2023-2030. Long-Haul Carriers, one of the segments analyzed in the report, is expected to record a 5.3% CAGR and reach US$165.6 Million by the end of the analysis period. Growth in the Super-Regional Carriers segment is estimated at 3.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$70.8 Million While China is Forecast to Grow at 8.2% CAGR

The Less-than-truckload (LTL) market in the U.S. is estimated at US$70.8 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$75.9 Million by the year 2030 trailing a CAGR of 8.2% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.9% and 5.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.0% CAGR.

Global Less-than-truckload (LTL) Market - Key Trends and Drivers Summarized

Less-than-truckload (LTL) shipping is a transportation method used for freight that does not require the full space of a truck. This service is beneficial for shippers who have shipments too large for parcel carriers but not large enough to justify the cost of a full truckload. In LTL shipping, multiple shippers share space on the same truck, each paying for their portion of the trailer based on the amount and weight of their goods. This method is highly efficient, as it allows for cost savings through shared transportation expenses and reduces the carbon footprint associated with the delivery of goods. LTL carriers typically operate a hub-and-spoke system, where local terminals serve as the spokes connected to central hubs, optimizing the consolidation and distribution of freight.

The LTL shipping industry has evolved significantly with advancements in logistics technology, enabling more efficient operations and better service offerings. Modern LTL carriers utilize sophisticated transportation management systems (TMS) that optimize routing and load consolidation, thus improving delivery times and reducing costs. Additionally, real-time tracking technologies have become standard, providing shippers with up-to-the-minute updates on the location and status of their shipments. These technological improvements have enhanced customer satisfaction and operational transparency, making LTL shipping a more reliable option for businesses of all sizes. Furthermore, the integration of e-commerce into the global economy has led to increased demand for LTL services, as more businesses require flexible and efficient shipping solutions to meet the expectations of online consumers.

The growth in the LTL market is driven by several factors, including the continued expansion of e-commerce, which requires efficient distribution channels for the delivery of goods to consumers and businesses. The increasing trend towards urbanization also plays a significant role, as more goods need to be transported to urban centers where direct truckload shipping may not be feasible due to logistical constraints. Moreover, environmental concerns and regulations are pushing companies to adopt greener logistics practices, with LTL shipping offering a more sustainable alternative to full truckload shipments by maximizing load capacity and reducing the number of vehicles on the road. Additionally, as businesses seek to enhance supply chain resilience and flexibility in response to global disruptions such as the COVID-19 pandemic, the demand for LTL shipping services that can provide adaptable and cost-effective solutions is likely to continue increasing. These drivers are crucial for understanding the dynamic nature of the LTL market and its future growth trajectory.

Select Competitors (Total 42 Featured) -

• C.H. Robinson Worldwide, Inc.
• Challenger Motor Freight Inc.
• DHL Group
• Estes Express Lines
• FedEx Corporation
• J.B. Hunt Transport Services, Inc.
• JRC Dedicated Truck Services
• Kuehne + Nagel International AG
• Nippon Express USA Inc.
• Old Dominion Freight Line Inc.
• R+L Carriers, Inc.
• Schneider National Inc.
• TVS Supply Chain Solutions Ltd.
• United Parcel Service of America, Inc.
• XPO, Inc.;

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