LTL Rates Surge With Strongest Upward Pressure Since Yellow's 2023 Exit

Key Details Less-than-truckload rates are experiencing their sharpest increase since Yellow Corporation left the market in summer 2023. The LTL monthly cost per hundredweight index shows pricing roughly 12.5% higher than last year and 29% higher than May 2021. This upward momentum reflects new bids and general rate increases rolling through the market at accelerated levels. Why It Matters LTL carriers are seeing sustained pressure building in the pricing environment, not just temporary rate fluctuations. The dry van truckload contract rate index continues moving higher, indicating more sustainable increases rather than temporary route guide failures. This trend is stronger than historical patterns would suggest. What Drivers Should Know The LTL market typically lags the truckload market by three to six months, but this current response is running ahead of schedule. Unlike truckload markets, LTL carriers don't turn down loads - they reduce service levels instead. December and January remain traditionally slow months for LTL due to manufacturing closures and reduced dock hours, which typically limits rate pressure despite winter weather challenges. The Connection LTL rates follow truckload pricing trends at a much slower pace because most contracts last at least a year. However, the recent truckload market turn during peak season is now flowing into LTL pricing in ways that exceed normal expectations.