The FTL and LTL Shipping Services Market is estimated to be valued at US$ 15.47 Bn or US$ 15.47 Billion in 2022 and is expected to exhibit a CAGR of 4.10% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Full Truckload (FTL) and Less-than-Truckload (LTL) shipping entails moving cargo utilizing commercial trucks. FTL shipping involves hiring an entire commercial truck for shipping cargo, while LTL shipping allows for consolidation of cargo from multiple shippers on a single truck. These shipping services offer cost-effective transportation of goods over long distances and are widely used for inter-city and inter-state movements.

Market key trends:
One of the key trends driving growth in the FTL and LTL shipping services market is the rising cross-border trade activities. International trade has been witnessing significant expansion over the past few years, largely attributed to globalization and improving economic conditions worldwide. Expanding globalization has been increasing the flow of goods across international borders. This has boosted the demand for cost-effective logistics and shipping services like FTL and LTL, for transportation of cargo involved in cross-border trade. Furthermore, various regional trade agreements and growing integration of emerging economies in global supply chains is expected to further propel cross-border trade volumes during the forecast period, thereby favoring the market growth.

Porter’s Analysis

Threat of new entrants: The FTL And LTL Shipping Services Market has moderate threat from new entrants due to the high investment requirement for trucks, warehouses, and IT infrastructure.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of multiple companies providing the shipping services. However, switching costs are low for buyers.

Bargaining power of suppliers: Trucking companies have low bargaining power over suppliers as there are many truck and transportation equipment manufacturers.

Threat of new substitutes: There is low threat from substitutes since rail and air cargo transportation are more complementary than substitutes due to different cost and transit time advantages.

Competitive rivalry: Intense due to many established players.

SWOT Analysis

Strengths: Established distribution and logistics networks, economy of scale, brand loyalty.

Weaknesses: Rising operational costs, shortage of drivers, dependency on fuel prices.

Opportunities: Growth of e-commerce sector, investments in advanced technologies like IoT, AI.

Threats: Trade restrictions, slower global economic growth, natural calamities.


Key Takeaways

The global FTL and LTL shipping services market is expected to witness high growth, exhibiting CAGR of 4.10% over the forecast period, due to increasing e-commerce activities globally. E-commerce is driving the need for reliable, timely, and efficient delivery of shipments which is fueling the market growth.

Regionally, North America dominates the FTL and LTL shipping services market currently owing to the large volume of domestic freight movement and strong presence of major logistics companies in the region. Asia Pacific is expected to be the fastest growing market due to rising industrial and trade activities in emerging economies like China and India.

Key players operating in the FTL and LTL shipping services market are 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, Werner Enterprises. The market is highly competitive with major players focusing on expanding their service networks and investing in automation and advanced tracking technologies.

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