There's a proverb that "there are no mistakes, just lessons." If that's true, the less-than-truckload (LTL) sector has acquired a world-class education over the past five to six years.
After a terrible cycle that saw annual revenues shrink from more than $33 billion at the last peak, in 2006, to $25.2 billion at the recession's trough in 2009, LTL carriers appear to have gotten their act together. Gone, at least for now, are the price wars that were largely designed to drive ailing YRC Worldwide Inc. out of business but ended up backfiring on the carriers that launched them. Volumes have returned as the economy has gradually improved, giving carriers the chance to exercise rate discipline and start to restore sanity to their bottom lines.
Through network redesigns and tough operational pruning, carriers have sopped up a large portion of the overcapacity that plagued them through the downturn and in the early part of the halting recovery. Full Story........
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