LTL-Parcel Competition Puts Pressure on LTL Pricing

Satish Jindel  •  Transport Topics

July 15, 1996


In the early 1980s, the less-than-truckload segment of the trucking industry had little concern about competition from the parcel carriers like United Parcel Service and Federal Express. And of course, RPS was not a factor at all, as it did not even come into existence until March 1985.

Now, the long- and short-haul LTL carriers find themselves losing market share to these competitors. This market shift is quite apparent and well understood. The implications for LTL trucking are profound, particularly with respect to that industry’s traditional pricing methods…