LTL Identity Is Being Eclipsed By Parcel Carriers, Analyst Says

September 29, 1999 8:20 AM, EDT

MEMPHIS, Tenn. — Perception can be a powerful selector. In today’s business, where express service and guaranteed overnight delivery mean premium prices and big profits, some less-than-truckload carriers might be losing freight and business simply because of their name.

Competition for traditional less-than-truckload freight is coming from many sides as the distinction between parcel, LTL and truckload carriers blurs. Almost anybody is a competitor, said Satish Jindel, principal of SJ Consulting Group, at the Distribution & LTL Carriers Association’s Educational Management Seminar here.

LTL carriers are being squeezed from both ends of the shipment weight spectrum. Parcel carriers and express service providers are accepting heavier freight shipments that could easily be handled by LTL. At the same time, truckload carriers are hauling loads less than 5,000 pounds and building their shipments on the fly, noted Jindel.

The business currently going to the parcel carriers and express delivery services is business that the LTL carriers should be getting, and business they don’t want to miss, said Jindel.

For the full story, see the Sept. 27 print edition of Transport Topics. Subscribe today.