LTL has become one of the fastest-evolving segments of freight in recent years—a shift defined by a combination of market forces and technology.
Consistent with broader freight trends, LTL demand remains soft. But due to carriers’ pricing discipline, increasing operating costs, and long-term capacity constraints, prices are actually rising.
Another key development in LTL: recent freight classification updates issued by the National Motor Freight Traffic Association (NMFTA) in July 2025. These created a standardized, density-driven classification for thousands of items, increasing costs for light, bulky freight. While the shift toward dynamic, data-driven pricing in LTL has been in progress for years as industry technology matures, the NMFTA updates have solidified it.
For shippers, this new mandate for the way LTL freight is priced, loaded, and tracked creates an optimization challenge. With it comes the opportunity for strategic execution and cost control. Advancements in automation, digital booking, and real-time tracking are closing the gap on real time visibility, modeling the milestone visibility of parcel shipping. These new technologies, combined with improved cooperation between shippers, carriers, and third parties, are working together to modernize LTL.
No longer is LTL a lower-priority mode reserved for a certain kind of shipment. Instead, it’s a strategic lever for meeting rising e-commerce demand and the pressure to offer faster, more flexible delivery options (see: just-in-time delivery). Leading shippers are modernizing their operations and tapping strategic partners to take advantage of modern LTL.
Our team at Uber Freight works closely with shippers to secure favorable carrier agreements, optimize packaging, and improve freight data accuracy. Given the classification changes, rising rates, and tightening capacity, shippers who implement these measures will be better positioned to take full advantage of modern LTL, and be protected from future cost spikes.
Optimize carrier agreements to lock in pricing and build resiliency
Since the freight recession began in 2022, driven by excess capacity post-pandemic, low consumer demand, and inflation, carriers have been fiercely competing for available loads. But the LTL market is highly consolidated, meaning a relatively small number of national and large regional carriers control most of the industry’s capacity and pricing power, especially coming out of the excess capacity period of 2023.
These carriers prioritize yield management over volume, and as a result have been resistant to rate cuts. They are also more tech-enabled than in previous down cycles and continue to invest in facilities, equipment, and automation to maintain efficiency and drive down long-term costs.
An optimized carrier strategy can help shippers navigate industry shifts, improve efficiency, and avoid higher costs as LTL pricing models and carrier capabilities continue to modernize. Our team at Uber Freight works closely to orient programs around three best practices:
Lock in year-over-year pricing with incumbent carriers: Securing predictable pricing structures with existing partners helps stabilize transportation spend and reduces exposure to rising rates.
Introduce non-incumbent carriers strategically: Thoughtfully adding new carriers, particularly for lanes where incumbents are underperforming or pricing has drifted up, can offer 3–10% cost savings while maintaining service reliability.
Diversify carrier mix to build long-term resilience and efficiency: A broader, lane-specific mix allows shippers to match the right carrier to the right freight profile, improving service levels and preventing over-reliance on any single provider.
Moreover, as technology drives sophistication in LTL on the carrier side, shippers can also take advantage. Using the Uber Freight TMS, shippers are able to shop ratesacross multiple carriers and implement smart carrier selection logic based on cost, transit time, and historical performance. When they do engage with a carrier, shippers can take advantage of API connectivity whenever possible for faster tendering, better tracking, more accurate rates, and tighter carrier integration.
Improve freight data accuracy and documentation to strengthen performance
The NMFTA classification updates de-emphasize subjective criteria in favor of measurable density (pounds per cubic foot). Density-based measurement allows carriers to price freight more consistently and logically across commodity types, creating a more definitive and defensible pricing structure than previous standards. While this shift may increase costs for light, bulky freight that takes up excessive trailer space, it also gives shippers clearer rules to work from and more predictable pricing outcomes.
This is why precision in capturing freight data is essential. Even small variations can trigger major cost discrepancies. As a result, dimensioning technology is now a standard capability in modern LTL operations to reduce the likelihood of costly reweighs, reclasses, and rebills. Shippers can work with Uber Freight, or their own 3PL or carrier partners, to identify the right pricing approaches, validate freight data, and reduce unexpected costs.
The bill of lading (BOL) has also become an even more important accuracy tool, as it determines how all freight data flows into a carrier’s system. If the BOL is incorrect, freight may be misrouted, delayed, or reclassified, and shippers may face unpredictable costs. For modern LTL workflows to flow seamlessly, clean and complete BOL data must accompany every shipment, ensuring the digital handoff between shipper, platform, and carrier is seamlessUber Freight’s managed transportation team helps shippers standardize and digitize their BOL process with templates that include required fields and automatic field population from TMS and ERP data.
Harnessing modern LTL to meet industry demands
E-commerce has put pressure on shippers to move less product, more frequently—and faster. LTL is a clear solution for many shippers. The industry’s projected growth speaks to the magnitude of this shift. The global Less Than-Truck-Load (LTL) market was valued at $227 billion in 2024 and is expected to increase 67% by 2034.
Within Uber Freight’s TMS, shippers gain end-to-end visibility to meet these demands, powered by API connectivity that ensures live status updates throughout the shipment lifecycle. This visibility becomes actionable with Uber Freight’s exception dashboards, SLA tracking, and proof-of-delivery retrieval so shippers can make the best possible decisions quickly.
Preparing for the future of LTL
As the LTL market shifts and the industry becomes more digital, more data-dependent, and more sensitive to accurate freight classification, shippers need partners who can help them adapt quickly and confidently. Strengthening data accuracy, optimizing carrier strategies, and adopting modern technology are essential to controlling costs and operating efficiently. Uber Freight’s advanced platform and hands-on expertise provide the tools and support needed to build a modern, resilient LTL program.
Ready to optimize your LTL shipping? Connect with an Uber Freight LTL expert today.