In 2001, a single event had a major impact on shaping the future of the Less-Than-Truckload (LTL) market—the bankruptcy of Consolidated Freightways (CF). At the time of its collapse, CF was the third-largest LTL carrier in the United States. Its closure created a void that triggered a period of rapid change and expansion in the LTL industry, as companies aggressively competed for market share, largely through mergers and acquisitions.
Over the next five years, companies such as Old Dominion Freight Lines, Estes Express Lines, and Saia Motor Freight expanded beyond their regional, direct-service territories, evolving into "Super-Regional" carriers before eventually establishing national footprints. Meanwhile, FedEx Freight and UPS Freight (now TForce) entered the market independently, acquiring multiple companies to achieve full coverage across all 50 states. Additionally, Yellow Freight completed a massive acquisition of Roadway Express, merging the two largest LTL carriers in North America by revenue.
In July of 2023, a very similar “trigger” event occurred. Again, the 3rd largest LTL carrier, this time YRC Freight, filed for chapter 11 bankruptcy. With it, three well known regional subsidiaries ceased operations as well: New Penn Motor Freight, Holland, and Reddaway. Combined, these Yellow Corporation companies had nearly 170 terminals and 30,000 employees.
Although we are less than two years removed from that day, we are already seeing similarities of the post-CF era ripple across the industry. Estes, Saia, XPO Freight, and others quickly stepped in to expand their coverage and terminal operations through acquisition of some of the former Yellow terminals. FedEx Freight is being spun off from the corporate parent. AAA Cooper Transportation has acquired and integrated both Midwest Motor Express and DHE Transportation adding coast to coast capability. Pitt Ohio Express has acquired Dohrn Transfer and Sutton Transport which expands their territory through most of the Northeast and Midwest.
So, what will the next few years bring? Will more local carriers combine to compete in regional territories formerly occupied by New Penn, Holland and Reddaway? Who will be the next Super-Regional to expand to the lower 48 and beyond? With all of the speculation surrounding Amazon’s desire to enter the LTL market, will they make a major acquisition to become this period’s FedEx/UPS?