Regional LTL Hauling More Truckload

Southeastern Freightways, a major player in regional less-than-truckload (LTL) hauling, is responding to shipper demand for more full truckload transportation as customers look to save money in the weak economy.

“Truckload is more competitive right now,” said Braxton Vick, Southeastern’s senior vice president of corporate planning and development.

Vick said that while the majority of the carrier’s overall growth is carrying direct LTL between the Southwestern and southeastern regions, cheaper truckload rates require Southeastern to partner with truckload carriers that deliver the linehaul portion of the move to regional hubs for final delivery by Southeastern.

At the same time, Vick said, other customers are forced by the anemic economy to cut shipment volume, decreasing their ability to move full truckload shipments – but with enough pricing leverage to push down LTL rates. “We’re competing on both price and service, but when we can’t cover our variable costs, there are some customers we just have to walk away from,” he said.