{
  "id": 14461539,
  "title": "LTL rates hit new high in Q3, moving higher in Q4",
  "url": "https://urgent.news/2026/10/14/ltl-rates-hit-new-high-in-q3-moving-higher-in-q4",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-14T13:35:12.000Z",
  "source": {
    "name": "FreightWaves",
    "slug": "freightwaves",
    "url": "https://www.freightwaves.com/news/ltl-rates-hit-new-high-in-q3-moving-higher-in-q4"
  },
  "original_language": "en",
  "account": "Less-than-truckload (LTL) rates reached a record high in the third quarter and are projected to continue rising in the fourth quarter, according to a report from logistics firm AFS Logistics and financial services company TD Cowen. The LTL rate-per-pound segment of the TD Cowen-AFS Freight Index was 78.8% higher than the January 2018 baseline by the end of the third quarter, marking a 11.9 percentage point increase year-over-year and a 1.1 percentage point rise compared to the previous quarter. Experts anticipate the index to end the fourth quarter at 82.5% above the 2018 benchmark, representing a 14.7 percentage point increase year-over-year. Factors contributing to these rate hikes include elevated diesel fuel costs and existing carrier pricing power. The report highlights the magnitude of cost inflation across carrier profit and loss statements, encompassing wages, health insurance, liability insurance, and maintenance expenses. Fuel surcharges were 79% higher year-over-year in September, with retail diesel prices surging year-over-year by 31% in July, 46% in August, and 68% in September. Large public carriers have managed to secure modest contractual rate increases during the downturn and are implementing general rate increases earlier than usual, given favorable sector fundamentals. Notable examples include Saia's (NASDAQ: SAIA) 7.1% general rate increase on July 6, which was 120 basis points higher and three months ahead of its 2025 scheduled increase. While linehaul rates increased by 1.2% sequentially in the third quarter, the distance traveled decreased by 2.2%. The weighted average cost per hundredweight for LTL shipments, as indicated by the index, rose sequentially in the third quarter (5.3% higher year-over-year) and year-over-year by 7.6%. Despite these trends, data from publicly traded LTL companies has recently diverged from the index, with tonnage growth accelerating since March. Mid-quarter updates revealed weight per shipment increases in July and August, with XPO (NYSE: XPO) being the exception. XPO's shipment mix now comprises a higher proportion of smaller, more profitable shipments from small and medium-sized businesses (SMBs), driven by rising TL rates and improved shipping volumes. The Institute for Supply Management's Manufacturing PMI reported a 54.5 reading in September, signaling expansion, while new orders data also rose to 55.3. Supply-side constraints, including regulatory actions, carrier departures, and fuel shocks, are compressing available capacity, leading to a significant surge in TL rates. The TL rate-per-mile component of the index was 19.7% above the January 2018 baseline in the third quarter, 13.7 points higher year-over-year and 3.3 points above the previous quarter, with projections indicating further increases to 23.4% by the fourth quarter. The third-quarter earnings season commenced with J.B. Hunt Transport Services (NASDAQ: JBHT) reporting results after the market closed.",
  "summary": "According to AFS Logistics and TD Cowen, record third-quarter less-than-truckload rates are projected to rise even higher by the end of the year. The post LTL rates hit new high in Q3, moving higher in Q4 appeared first on FreightWaves .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}