As we move into 2025, the U.S. less-than-truckload (LTL) market is undergoing significant changes, with consolidation becoming a key theme. Regional LTL carriers are actively building scale, expanding their reach, and strengthening their network density, especially in areas such as the Midwest. At Gain Consulting, we’re keeping a close eye on these developments, as the ongoing mergers and acquisitions (M&A) reshape the landscape and impact both carriers and shippers.
The Rise of Consolidation in the Regional LTL Market
Consolidation in the LTL market is gaining momentum, with smaller regional players merging with larger ones to improve service and reach. This wave of M&A activity is particularly pronounced in the U.S. Midwest, a region where LTL providers have long been vying for dominance. The shutdown of Holland, a regional subsidiary of Yellow, in 2023 created a gap in the market that has yet to be filled—an opportunity that has not gone unnoticed by regional carriers.
One key driver behind the increased M&A activity is the growing demand for premium on-time, next-day service at scale across regions stretching from Ohio and the Great Lakes to the Great Plains. Larger carriers are actively expanding their networks to offer the coverage and service levels that shippers require. As a result, we’re seeing heightened competition and reshuffling among LTL players, which may lead to more disciplined pricing in the market.
Notable Mergers and Acquisitions: Pitt Ohio and Sutton Transport
The latest example of consolidation in the regional LTL space is Pitt Ohio’s acquisition of Sutton Transport, completed on January 1, 2025. Sutton, based in Wisconsin, operates 13 terminals across eight states, and this acquisition bolsters Pitt Ohio’s presence in the 10-state region already served by its subsidiary, Dohrn Transfer. By combining the strengths of these two networks, Pitt Ohio aims to improve service density and speed up freight movement within a growing market.
Geoffrey Muessig, Chief Marketing Officer for Pitt Ohio, emphasized that the company will integrate the two networks in a three-pronged approach—beginning with sales, followed by technology integration, and finally operations. This strategic move positions Pitt Ohio for further growth, with more acquisitions expected in the year ahead.
A Stronger Focus on Service Density
The integration of Sutton into Pitt Ohio’s network illustrates a broader trend in the regional LTL market: the drive for increased density. As LTL carriers scale their operations, they can improve service speed and fluidity—critical factors in today’s competitive logistics environment. By increasing density, these carriers can ensure faster delivery times, which is crucial for shippers looking to meet the growing demands of consumers and businesses alike.
According to Muessig, “In the regional LTL market, density improves service and results.” This focus on density is especially important as demand for reliable, time-sensitive delivery continues to rise.
More M&A Activity Expected in 2025
The Pitt Ohio-Sutton acquisition is not expected to be the last major deal in the LTL market. Experts predict that smaller regional carriers will continue to merge with larger players in 2025. Satish Jindel, president of SJ Consulting Group, believes that at least three additional regional LTL carriers will fold into larger companies this year. He points to the Moran-RMX deal, as well as Knight-Swift Transportation Holdings’ acquisition of Dependable Highway Express, as examples of this growing trend.
As larger players consolidate their positions, they will likely take a more disciplined approach to pricing in local and regional markets. This could result in price stabilization or even increases, rather than decreases, as companies with more resources and technology are able to enforce stricter pricing policies.
The Benefits of Regional Consolidation
Consolidation can be a double-edged sword for shippers. While it may lead to more stable pricing and improved service levels, it could also limit competition in certain markets. However, there’s still ample room for good carriers, especially those that provide excellent service at acceptable prices.
As Moran Transportation’s president, Mike Moran, noted, “There’s plenty of room out there for good quality carriers.” Smaller carriers who offer exceptional service and competitive pricing will continue to find opportunities, particularly as larger carriers prioritize growth through M&A and technology investments.
The Bigger Picture: LTL’s Expanding Role in Supply Chains
As LTL carriers expand their networks and scale their operations, they are increasingly broadening their role within the supply chain. Many LTL providers are expanding their services beyond traditional freight handling, moving into areas such as retail logistics, warehousing, specialized services, and even port transloading. This diversification allows carriers to offer more comprehensive solutions to shippers, helping them shorten distances between distribution centers, suppliers, and end customers.
This shift in the LTL landscape is driven by the evolving needs of shippers who are looking for more agile, flexible solutions in an increasingly complex logistics environment. With more carriers expanding their reach and service offerings, the LTL market is poised for continued growth and innovation.
Conclusion: Preparing for the Future of LTL Logistics
The wave of M&A activity currently reshaping the LTL market signals a new phase of consolidation that will likely continue throughout 2025. As larger carriers scale up and smaller regional players look for ways to compete, pricing and service dynamics are expected to evolve. Shippers should stay informed about these changes to ensure they are working with the right carriers to meet their logistics needs.
At Gain Consulting, we are closely monitoring these developments and helping our clients navigate the evolving LTL landscape. As consolidation continues, companies should consider how these changes might impact their supply chain strategy and ensure they are well-positioned to capitalize on the opportunities that lie ahead.
Stay tuned for more insights from Gain Consulting as we continue to track the evolving trends in LTL logistics.
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