LTL carriers change landscape, seeking partners in trucking’s profitable niche

The $56 billion a year less-than-truckload (LTL) industry is changing in ways unforeseen even five years ago.

Northeast LTL giant Pitt Ohio Transportation Group’s recent acquisition of Midwest LTL carrier Sutton Transport marked not only what Pitt Ohio executives say is a significant milestone for them but for the LTL industry writ large.

In the short term, both Dohrn Transfer, another recent Pitt Ohio acquisition, and Sutton Transport will operate separately under the Pitt Ohio ownership. But eventually they will integrate into a more enhanced operation.

“This acquisition aligns perfectly with our strategic vision to enhance service for our customers by increasing shipment density within our footprint,” Pitt Ohio President Chuck Hammel said.

Sutton Transport has a strong reputation for excellence in the industry, Hammel added. “We are confident that this integration will deliver significant benefits to our customers. This acquisition exemplifies our commitment to innovation and growth,” Hammel said.

Scott Bagley, vice president of sales at Sutton Transport, said the phased-in approach “guarantees that our valued customers experience a smooth, consistent and high-quality service throughout this period of change.”

The acquisition is expected to catapult privately held Pitt Ohio’s revenue to the 12^th-largest LTL carrier in the nation.

But the acquisition marks a significant change of strategy within the LTL industry. 

Roughly 5% of the LTL market capacity exited when Yellow, once one of the three biggest LTL carrier and the 13th-largest overall trucking company, ceased operations in early August 2023.

In leaving the LTL market, Yellow caused a scramble for its rolling stock and usable terminals. Competitors FedEx Freight, XPO, Estes Express, Saia, R+L Carriers and others supplied Yellow’s secured creditors with nearly $2 billion in cash from terminal sales.

“Five years ago, the profitability of LTL carriers lagged both the truckload and parcel sectors,” Satish Jindel, principal of SJ Consulting, told LM. “Now, that has totally flip-flopped.”

Now the LTL sector is one of the most sought-after niches of trucking largely because of its huge barriers to entry. LTL carriers are so much in demand these days, Jindel said, that he predicts “at least three more” significant consolidations and acquisition of LTL carriers in 2025.

The comes on the heels of Knight-Swift, the largest truckload carrier by volume, buying more than a dozen of Yellow’s old terminals and entering the LTL market in earnest later this year. That came after Knight-Swift acquired Dependable Holdings, which included Dependable Highway Express (DHE) last July 30.

And last Nov, 11, Moran Transportation bought RMX Freight, an LTL carrier based in Roseville, Ohio.

Jack Cooper, primarily a car-hauler, made some waves in the days immediately following Yellow’s closure in 2023, when it made a highly publicized effort “to save Yellow.” Yellow failed, anyway.

Jack Cooper recently acquired Standard Forwarding, a Teamsters-covered LTL carrier. The Teamsters recently announced a new five-year deal with more than 350 drivers at Standard Forwarding, which could give Jack Cooper a foothold in the LTL market.

Standard Forwarding is a 90-year-old regional LTL carrier operating 14 terminals in Illinois, Iowa, Wisconsin, Indiana and Minnesota with a fleet of 350 tractors and 800 trailers. It was acquired by DHL Freight in 2011.

This is all part of larger LTL carriers’ strategy to increase their access to what Jindel refers to as “the three T’s” of a success trucking company—terminals, technology and talent.

“This will be a trend that will continue throughout 2025,” Jindel predicted.