US less-than-truckload (LTL) carriers are facing pricing pressure as freight volumes shrink and shipments get lighter, prompting a fundamental restructuring of the sector, reports New York's Journal of Commerce.

TranzAct Technologies co-founder Mike Regan said carriers are defending key lanes by offering aggressive pricing, with some accepting rate cuts of up to 12 per cent to retain business. He warned of irrational pricing behaviour ahead of FedEx Freight's planned spinoff next June.

Other speakers at Inland '25 disagreed, saying pricing discipline remains intact. Mich Fabriga of AFS Logistics said pricing floors vary by carrier, while A Duie Pyle's John Luciani reported low single-digit rate increases and a focus on cost efficiency.

Mr Luciani said shipments are getting smaller, with average weights down from 1,100 to 950 pounds. He noted that shippers are sending smaller loads more frequently to meet inventory needs.

FedEx Freight saw its average daily shipment count fall 2.2 per cent year-on-year in the quarter ending August 31. The company cited weak US manufacturing and excess truckload capacity as key challenges.

Despite soft demand, carriers continue expanding networks. Pyle is growing in Ohio and plans further expansion in the Northeast to compete with regional rivals and reduce transit times.

Mr Regan said the LTL industry is undergoing a functional restructuring, accelerated by Yellow's collapse in 2023 and earlier shutdowns such as New England Motor Freight in 2019.

The US Bureau of Labor Statistics' LTL producer price index hit a record 269 in August, up 10.5 per cent year-on-year. Mr Regan urged shippers to rethink procurement strategies and engage carriers in long-term partnerships.