Old Dominion, XPO, Mainfreight & US LTL: A Broker's Perspective

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Why do you collaborate with several asset-based LTL carriers?

The primary reason is the price discrepancies between carriers. Some carriers offer extremely competitive prices to certain regions of the country, while they are quite expensive in others. This is typically because they use an agent for the final leg of the delivery. For instance, they might transport goods all the way to Florida and then use a local carrier for the final delivery.

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How significant could the price discrepancy be for the same LTL carrier in a region where they have a strong presence versus a region where they don't?

Oak Harbor, a private carrier, is quite prominent on the West Coast, operating from Washington down to southern California. That's their primary area of operation. On the other hand, Old Dominion doesn't really like going into Washington. For instance, a shipment of two pallets from Los Angeles to Seattle might cost around $400 with Oak Harbor. However, the same shipment with Old Dominion could cost $700. This price difference can be significant for a small customer who only ships a few LTL shipments per month. They would typically opt for the cheaper carrier. Conversely, Oak Harbor doesn't really like going to places like New Mexico, where they have no presence. For the same shipment size from Los Angeles to Albuquerque, Old Dominion might only charge $350, while Oak Harbor could charge $650.

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