FTL AND LTL SHIPPING SERVICES MARKET ANALYSIS

The Global FTL and LTL Shipping Services Market size was valued at US$ 15.47 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.10 % from 2023 to 2030. FTL (Full Truckload) and LTL (Less than Truckload) shipping services are two of the most common methods of freight transportation. FTL shipping is used when a shipper has enough freight to fill an entire truckload, while LTL shipping is used when a shipper has a smaller amount of freight that does not require a full truckload.

Global FTL and LTL Shipping Services Market: Regional Insights

North America is expected to witness significant growth over the forecast period, owing to a rise in the adoption of commodities such as agriculture, food and services.

The U.S. freight and logistics sector has coped up well during the period of the pandemic. In December 2020, The international leader in freight management and contract logistics is CEVA Logistics, which has its headquarters in Switzerland. In order to offer customers a "all-inclusive" LTL service with the same lead time as FTL, CEVA Logistics has introduced a new quick LTL (Less than Truckload) service outbound from China that drastically cuts down on the current wait times. This unique, totally owned service was developed by CEVA Logistics to satisfy the demands of its clients. The new programme is available on Tuesday/Thursday and Saturday, depending on demand, two to three times per week. Shipments of DG Class 9 Li-Battery will also be allowed on Saturday. The drivers on this service have undergone specialised training and possess all required Dangerous Goods licences for secure International Road Transport (TIR) transport. The commodities include agriculture & food, light machinery, electronics, wood, textiles, services, coal and oil & gas. Because of the commodity-mix profiles of less-than-truckload (LTL) and full-truckload (FTL) shipping, LTL and FTL both are likely to recover faster than other modes such as air cargo and rail modes in most scenarios. Commodity mix profiles of less-than-truckload (LTL) and full-truckload (FTL) shipping is the transportation of similar commodities such as agriculture, food and services. Both modes of transportation represent a greater proportion of fast-to-return agriculture, food, and services and benefit from e-commerce growth. FTL's freight mix also includes a significant portion (16%) of quick-to-return basic commodities. Moreover, North America is expected to drive market growth, owing to an increasing number of mergers and acquisitions. For instance, in 23 March 2023, (The Expresswire) "FTL and LTL Shipping Services Market" report details how the technology sector is changing and how well-established and up-and-coming firms are coping with both long-term opportunities and short-term difficulties. The FTL and LTL Shipping Services Industry's growth rate is one of its main draws.

Figure 1: Global FTL and LTL Shipping Services Market Share (%), By Region, 2022

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Global FTL and LTL Shipping Services Market Drivers:

Freight forwarding and shipping services have learned to adapt to new technologies over time. Technologies designed specifically for the freight industry is becoming more widely available. Implementing this technology enable freight firms to not only improves services and reputation, but also allows firms to differentiate themselves from competitors. Below are some of the technologies used by a freight company. Many operations in the freight industry can be improved with the push of a button. The ‘Push of a Button’ technology enables businesses to easily coordinate and plan shipments, allowing them to control the transportation of goods through clear, up-to-date tracking. The client can learn about their shipment's location, status, and expected delivery time. Moreover, the ‘Automatic Identification Technology’ has made possible for operations to run much more smoothly, when transporting goods from one location to another. The use of automatic technologies such as handheld scanners allows for more efficient day-to-day operations. Reports and logs can be easily printed off at the end of each day with the implementation of electronic identification technology and onboard computer systems when transporting goods. These are the technological drivers, which are expected to drive the FTL and LTL shipping services market.

Global FTL and LTL Shipping Services Market Opportunities:

The FTL and LTL shipping services market offers opportunities for regional expansion. As businesses grow, they require reliable transportation services for their goods. By expanding operations to nearby regions, logistics companies can tap into new markets and increase their customer base. Advancements in technology have led to the development of innovative logistics solutions such as GPS (Global Positioning System) tracking, real-time shipment monitoring, and automated scheduling systems. These technologies can help businesses improve the efficiency and accuracy of their shipping operations, creating opportunities for logistics companies to offer value-added services to their clients. Diversification is another opportunity for logistics companies in the FTL and LTL shipping services market. By offering a range of transportation services such as air freight, sea freto freight, and road transportation, logistics companies can cater to a wider range of clients and increase their revenue streams.

Global FTL and LTL Shipping Services Market Trends:

E-commerce Growth:

The e-commerce industry has experienced tremendous growth in recent years, and as a result, the demand for shipping services has also increased significantly are services commonly used in the e-commerce industry are FTL (Full Truckload) and LTL (Less Than Truckload) shipping services. FTL shipping services are used when a shipment requires an entire truck to be transported. This service is typically used for large and heavy items that cannot be shipped via traditional parcel services. On the other hand, LTL shipping services are used when a shipment does not require an entire truck and can be combined with other shipments to fill up the truck.

Global FTL and LTL Shipping Services Market Restraints:

Fluctuating fuel prices:

Fuel costs are a significant component of shipping expenses, and fluctuations in fuel prices can significantly affect the profitability of FTL and LTL shipping services. Volatile fuel prices can

Make it difficult for service providers to maintain consistent pricing for their services, which can result in reduced demand for these services. Fluctuating fuel prices can significantly impact the FTL and LTL shipping services market. As fuel costs are a significant component of shipping expenses, changes in fuel prices can directly affect the pricing of these services. When fuel prices increase, the cost of shipping goods increases, which can reduce demand for FTL and LTL shipping services. Service providers may be forced to increase their prices to maintain profitability, which can further reduce demand for their services. On the other hand, when fuel prices decrease, service providers may lower their prices to remain competitive, but they may not necessarily pass on the full savings to customers.

Figure 2: Global FTL and LTL Shipping Services Market Share (%), By Service Type, 2022

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Global FTL and LTL Shipping Services Market Segmentation:

The global data visualization tools market report is segmented into Service Type, Truck Type, Shippers Type, and Application Type.

On the basis of service type, FTL and LTL shipping services market is segmented into less than truckload (LTL) and full truckload (FTL). By truck type, the market is segmented into dry van trucks, flatbed trucks/heavy loads, and refrigerated trucks. On the basis of shipper 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.

Global FTL and LTL Shipping Services Market: Key Developments

In December 2020, CEVA Logistics, a company based in Switzerland, is an international logistics and supply chain leading 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 ‘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 for 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.

In January 18 2022 XPO Logistics, Inc., a leading provider of freight transportation services, announced the opening of two less-than-truckload (LTL) terminals to increase customer service capacity in its North American network. In addition, the company increased production capacity at its trailer manufacturing facility, and will open four more fleet maintenance shops this quarter.

Global FTL and LTL Shipping Services Market: Key Companies Insights

When compared to other available shipping options, LTL shipping is far more cost effective. The primary benefit of using a LTL carrier is that items can be transported for a lower cost compared to hiring an entire truck and trailer for a single shipment. Because the carrier is transporting multiple shipments from various shippers, the freight carrier merges all of the shipments into a single truck.

Some of the key players in the Global FTL And LTL Shipping Services Market are Key players operating in the global FTL and LTL shipping services market include YRC Freight, XPO Logistics, Old Dominion, UPS Freight, Estes Express Lines, ABF Freight, R+L Carriers, Saia Motor Freight Line, Southeastern Freight Lines, Holland Regional, J.B. Hunt, Schneider, Swift Transportation, and Werner Enterprises.

*Definition:  FTL- Full truckload, commonly referred to as FTL, is a type of shipping mode whereby a truck carries one dedicated shipment. In other words, the journey is reserved for one shipment only. FTL trucking has several advantages over the alternative trucking shipment mode, LTL, or less than a full truckload shipment.

LTL- Less than truckload or less than load is when one trailer carries freight from multiple shippers rather than from an individual company. In LTL, various shipments are loaded in one truck to utilize its capacity as near as possible. Small businesses generally prefer this type of trucking load with fewer shipping requirements and budget constraints.