Is it a good time to conduct an LTL RFP during this period of volatility?
Should a Shipper place their business out to bid during this period of volatility? We will provide rationale and a recommendation on whether “To Bid, or Not to Bid, that is really the question here. There are several considerations to take in before acting. Examples include the current LTL capacity, Rule changes, recent volume shifts in geographies, and volatility.
LTL network capacity tightened in 2025, driven by strategic expansions and reduced market players. The 2023 bankruptcy of Yellow Corporation removed 8-10% of domestic LTL capacity, prompting carriers like Estes Express Lines and XPO to acquire Yellow’s terminals, adding over 900 dock doors by early 2024. Despite these additions, freight demand has softened and volumes are projected to grow only 1.6% in 2025. This modest growth, coupled with carriers’ cautious capacity additions, creates a balanced but tight market. The top 25 LTL carriers control over 80% of capacity, reinforcing their influence over service availability.
Rate Increases
Renewing agreements will yield general rate increases (GRIs) of 5-8%, whereas negotiated contracts will reduce the GRIs to 3-5%. Opening it up to competition is the activity that will drive cost savings The market is ripe as LTL carriers are currently focused on filling up their open trucks and market share opposed to selectivity and profitability.
BEWARE: there is a hidden price increase lurking in the shadows. The National Motor Freight Classification (NMFC) overhaul, effective July 2025, will adjust density-based pricing for over 40% of commodities, potentially raising costs for shippers unprepared for reclassifications. If you are still using class based pricing schemes, then this change in the NMFC will impact your costs!
THE SOLUTION: For over 25 years, CPC Consultants has been negotiating and establishing non class base pricing which has immunity to NMFC changes. Additionally, it minimizes accessorial and obscene fuel surcharges. CPC Consultants’ is also equipped with a benchmark rate library and can determine if there is an opportunity to save before going through an RFP. Let CPC and its 100 years of combined logistics expertise help you with your next RFP.
The time is now to act and conduct an RFP.