What did you have in mind? LTL profitability is best measured at the whole network level and also at the terminal level.
For an individual account or a single piece of freight, the contribution margin might look positive at almost any price. But the industry today is in a good place due to the tremendous price discipline, which requires operators to look beyond the contribution margin and demand that each account helps improve the overall operating ratio.
Really great read.
I am writing this up presently and this was a fantastic resource.
Merci
Thanks. Really interesting sub-industry — I’m looking forward to your take!
Do you have any view on the unit economic of the LTL industry?
What did you have in mind? LTL profitability is best measured at the whole network level and also at the terminal level.
For an individual account or a single piece of freight, the contribution margin might look positive at almost any price. But the industry today is in a good place due to the tremendous price discipline, which requires operators to look beyond the contribution margin and demand that each account helps improve the overall operating ratio.