TFI Weighs Nonunion LTL Expansion as Pricing Pressures Hit 3PL Shippers

TFI International is positioning for growth in the U.S. less-than-truckload (LTL) market while working to correct recent pricing missteps—moves that could reshape capacity and rates for shippers in the months ahead.

During its second-quarter 2026 earnings call, CEO Alain Bédard confirmed the Montreal-based carrier is exploring the acquisition of a U.S. nonunion LTL carrier valued at approximately C$200 million (about $142 million). The company currently operates a very small nonunion LTL footprint in the U.S.—roughly 1,000 to 1,300 shipments per day—while the majority of its LTL volume runs through the unionized TForce Freight network.

Geographic Ambitions and Growth Strategy

Bédard outlined clear target markets for expansion: Texas, California, Ohio, Michigan, New York, and the Carolinas. The strategy mirrors TFI’s successful dual model in Canada, where it operates both union and nonunion LTL networks. Building or acquiring nonunion capacity would give the carrier greater flexibility and denser coverage in key regions.

TFI ranks No. 6 among North American for-hire carriers and No. 8 in the LTL segment. In Q2 2026, its LTL unit handled 1.97 million shipments—up 7.5% year-over-year—and generated $724.9 million in revenue before fuel surcharge (a 3% increase). The division’s operating ratio improved to 88.5 from 89.5 a year earlier.

The Pricing Challenge with 3PL Customers

Despite volume growth, executives openly acknowledged pricing weakness. Average revenue per shipment (excluding fuel) declined 2.1%, and weight per shipment fell 1.5%. The primary issue stemmed from the third-party logistics (3PL) segment, which accounts for more than one-third of the unit’s business.

TForce Freight attracted a surge of 3PL volume by offering rates that did not fully reflect market conditions, sometimes at the expense of service quality. “The biggest culprit where we probably made a mistake is 3PL… where we got inundated with volume because probably we were the cheapest guy in the country,” Bédard said. The commercial team is now focused on correcting those rates.

What This Means for Shippers

For U.S. shippers and 3PLs, TFI’s dual strategy carries several implications:

• Capacity expansion in high-demand regions could improve service options and network density, particularly if a nonunion acquisition materializes.

• Rate increases aimed at 3PL accounts are likely in the near term as TFI realigns pricing with market realities.

• Service trade-offs may continue in the short run while the carrier balances volume growth against profitability.

• Broader market dynamics—TFI’s strong truckload performance and selective M&A approach—signal ongoing consolidation and competitive pressure across LTL.

Overall company results were solid: net income rose 39% to $136.2 million and total revenue increased 12.4% to $2.29 billion, supported by truckload strength.

How Gain Consulting Helps

In an environment of carrier expansion, selective rate recovery, and shifting capacity, proactive shippers gain an edge. Gain Consulting supports manufacturers, retailers, and 3PLs with:

• LTL network optimization and carrier diversification strategies

• Pricing and contract analysis amid rate corrections

• Scenario planning for capacity and service changes

• Cross-border and multimodal logistics advisory

Whether you’re evaluating new LTL partners, renegotiating 3PL rates, or preparing for potential network shifts, our team delivers practical, data-driven guidance.

Ready to strengthen your LTL strategy? 

Contact Gain Consulting for a complimentary logistics assessment and tailored recommendations.

Gain Consulting partners with shippers and logistics leaders to optimize freight networks, manage cost volatility, and build resilient supply chains.