LTL Profitability Sinks
Profitability at national LTL carriers took a big hit in Q1 2025. They will need to fight hard to keep margins from falling further the balance of the year.
Key Observations
- Operating margins peaked in 2022 and have been sliding since. The 3.1% drop from Q1 2024 to Q1 2025 was the biggest downward move in the last three years.
- Margins are now below 2020 levels. Higher operating costs are the biggest culprit, far outweighing any small gains in freight rates.
- Expect further cost-cutting and efficiency initiatives in the coming months. With no signs of freight volume and rate increases, fleets will need to manage tightly to keep operating margins in double digits.
Comments ()