full truck load (FTL) mode refers to a particular freight being shipped from the origin to the destination without halting points, involving operations with low fixed costs and maximum vehicle utilization capacity, as the transportation is programmed to meet a particular demand. As the freight is consolidated along a route distributed in different geographical points but within the same zone, the freight cost in the less than truckload (LTL) mode is generally less than the cost in the FTL mode. As a result, the time between origin and destination is longer in LTL because the truck stops at distribution centers for loading and unloading to consolidate the freight. The LTL mode is typically used to transport small quantities, while the FTL mode is used to transport large quantities over long distances.
The increasing demand and supply of transportation services is expected to propel the market during 2022-2030.
The market dynamics in the shipping market can be attributed to a variety of factors. On the demand side, the U.S. economy is expanding, and recent corporate tax reform efforts are likely to encourage companies to invest. The supply side is also expanding such as the ELD (electronic logging device) limiting the number of hours that drivers can work, complicating the industry's driver shortage. Furthermore, truck manufacturers are facing supply constraints upstream with increasing customer demand to expand their fleets. The rise of e-commerce has also had a significant impact on the shipping industry. With more consumers ordering goods online, the demand for both FTL and LTL services has increased. However, the rise of e-commerce has also led to more pressure on carriers to provide faster delivery times, which has increased competition and put pressure on prices. Overall, the shipping industry is constantly evolving, and carriers and logistics companies must be able to adapt to changing market dynamics to remain competitive.
This report segments the global FTL and LTL shipping services market on the basis of service type, truck type, shipper type, application type, and region. On the basis of service type, the FTL and LTL shipping services market is segmented into less-than truckload (LTL) and full truck load (FTL). By truck type, the market is segmented into dry van trucks, flatbed trucks/heavy loads, and refrigerated trucks. On the basis of the shipper’s type, the market is segmented into multiple shippers and single shippers. On the basis of application type, the market is segmented into industrial & manufacturing, energy & mining, food & beverages, oil & gas, pharmaceuticals & healthcare, and others. Based on region, the market can be categorized into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
Key features of the study:
In December 2020, CEVA Logistics, based in Switzerland, is a leading international logistics and supply chain provider in freight management and contract logistics. CEVA Logistics' new rapid LTL (Less than Truckload) service outbound from China significantly reduces existing lead times and is intended to provide customers with an ‘all-inclusive’ LTL service with the same lead time as FTL. CEVA Logistics created this one-of-a-kind wholly owned service to meet the needs of its customers. The new program is accessible two to three times per week (depending on demand) on Tuesday/Thursday and Saturday. Li-Battery shipments will also be accepted on Saturday (DG Class 9 Li-Battery). Drivers on this service have received special training and hold all necessary Dangerous Goods licenses for safe Transports Internationaux Routiers (TIR) transport.
“*” marked represents similar segmentation in other categories in the respective section.