March 12, 2024 • 10 mins
On this special episode of Trucking Up History presented by Bryan Truck Line, we’ll discuss the origins of LTL trucking. This look back into the history books tells the story of Less Than Truckload freight became a strong player in the transportation industry.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome to the Brian Truck line show.
I'm your host,
Marcus Bridges.
Thank you for being here today.
A very special edition of the Brian Truck line show today as we kick off episode two with this very exciting episode of Trucking up history.
The history of less than truckload,
less than truckload,
more than trucking.
(00:21):
This is the Brian Truck line show from Northwest Ohio to wherever you are with your host,
Marcus Bridges.
What do you think of when you hear LTL?
Let me guess you're picturing fedex triples cruising down the highway.
You can feel your jaw clench and your knuckles turn white.
As you imagine yourself hauling three trailers down a winding highway.
(00:43):
You come in the cojones of the driver behind the wheel and don't think much else of it.
You already know LTL means less than truckload.
You might already know.
That means the trailers that truck is hauling are carrying as little freight as possible.
Maybe you even know that means each trailer's load is under £2000.
But do you know how LTL hauling as we know it today came about?
(01:04):
We may have forgotten but the realities of modern LTL came about in the semi recent past after the dismantling of Chokehold IC C regulations in the 19 eighties LTL as we know,
it started generating an efficient and profitable way to get parcels from point A to point B.
So join me in exploring how the heck we started hauling sometimes almost empty trailers across the country and what that means for the state of freight.
(01:30):
Let's talk about what exactly LTL hauling is before we get into the history.
Just so we're all on the same page.
Boring semantics.
I know but humor me for a sec.
Will you,
we know LTL stands for less than truckload,
which means on a technical level,
freight consists of packages under 100 and £50 and the total weight of the truckload is under £2000 carried by trailers that are 26 to 53 ft long.
(01:54):
Typically this way of transporting freight is reserved for pedestrian packages.
You know,
like that large order of rubber dog turds I ordered from Hong Kong or?
Oh,
was that just me?
Anyway?
I hope you all got the top gun reference there.
LTO operations look like a hub and spoke much like an old wagon wheel.
With the truck routes being the spokes and the service terminals being the hubs terminals collect local freight in an effort to consolidate freight for an area.
(02:18):
Then that freight is distributed to whichever shippers they work with networks of shippers and hubs can get pretty complicated,
much like a spider web of old wagon wheels with some freight taking up stops at multiple hubs along the way to its destination to be sorted and routed or subjected to inspection.
And from my rudimentary understanding of this system,
eventually,
that large order of rubber dog poop will reach my doorstep.
(02:42):
So why do we use this method of shipping freight?
From an outsider's perspective?
The whole LTL system seems kind of complicated at best and totally overwhelming at worst,
intricate networks of shippers,
freight,
making multiple stops at different hubs across the country.
What gives like most things this has to do with money.
LTL drastically slashes costs for shippers because they're not having to rent out a trailer's full space.
(03:06):
See often LTL freight is made up of relatively small boxes that can be stacked on a pallet and shrink wrapped together that makes loading and unloading quick and easy for drivers or loaders.
That way,
shippers are not having to cover as much loading and unloading time,
which means less costs and quicker turnaround time for everyone consolidated and secured freight also keeps damaged freight at a minimum,
(03:28):
which means shippers are spending less money,
compensating for messed up packages.
Shippers saving money also allows them to tack on Fancy Schmancy A la carte options to their freight shipments,
freeze protection,
residential delivery and a smorgasbord of other options means customized delivery and more earnings for those who work hard to bring us our packages,
(03:48):
the cost effectiveness of LTL doesn't just apply to the boys in big shipment savings like this for companies trickle down to us,
the humble consumer and we end up spending a little less on shipping costs,
allowing us more money to buy frivolous toys for my Corgis and other dumb stuff on the internet.
All right,
now that we've got a general understanding of what LTL freight is and why we use it.
It's time to figure out how the heck we ended up hauling half,
(04:11):
sometimes a quarter of the way full trailers across the country.
Let's reverse it to 1935.
The motor carrier Act makes it so that the railroad has extended authority over the trucking industry.
Initially,
most of the freight in the United States was handled and moved by the rails which was controlled by the Interstate Commerce Commission A K A,
the IC C.
(04:31):
So those guys really wanted to ingratiate themselves and control the newly booming trucking industry,
especially after LTL.
Trucking became a more flexible and cost effective alternative to shipping smaller amounts of freight via the railroads.
In the 19 hundreds.
The IC C wanted to gain control of the trucking industry because the wheels were really starting to fall off the trailers in the 19 thirties,
so to speak.
(04:52):
The Great Depression caused many companies that had been newly founded during the trucking boom to totally flop the less established companies that didn't shutter their doors were on the brink of failure and struggling to make ends meet.
The IC C's initial aim was to make it difficult for newer trucking companies to get their licensing and easier for more seasoned companies to do just that the idea was to lessen the amount of failed and bankrupt businesses in the country.
(05:16):
But ultimately,
the I CCS many regulations led to a chokehold on the industry.
By the time the IC C gained mass control over trucking.
In 1935 there was already an established trucking network in the United States due to the IC C having mass control over almost all modes of transportation.
A more restrictive set of regulations was set in place and rendered many of the pre-existing trucking networks useless regulations,
(05:41):
for example,
kept truckers from hauling home with a full trailer after transporting a load to its destination and that full trailer they'd hauled to its destination was most likely kept to just one certain commodity.
These regulations also led to restrictions on how much or in our case,
how little freight was able to be hauled at one time.
All of the IC C regulations led to a lot of full truckload freight,
(06:03):
a lot of deadheading skyrocketing shipping costs.
And because of the licensing restriction and unhealthy lack of competition in the industry,
the IC C regulations weren't all a total chokehold.
We can partially thank them for the development of the modern interstate system.
A project that came about to support the booming freight industry,
not just for FTL trucking but for LTL as well.
(06:26):
After almost 50 years of operating under the I CCS tight rules,
the trucking industry pivoted again.
The motor Carrier Act of 1980 was a breath of fresh air for the trucking and transportation industries and led to many restrictions including those on freight types and amounts to be lifted.
More efficient trucking networks started to pop up and shipping prices started to fall.
(06:47):
Newer trucking companies found it easier to gain licensing which increased the amount of competition in the industry and open the opportunity for even more or less than truckload freight to be hauled across America.
Now let's put the pedal to the metal and haul ass back to our current modern time.
The invention and popularization of e-commerce has totally changed the freight industry,
(07:07):
particularly our good friend LTL freight.
When e-commerce first took off,
the industry had to adjust its outdated processes to make room for improvement.
In 2020 we saw the same happen when e-commerce was catapulted into many consumers main way of well consuming.
Even after the pandemic,
many of us have gotten comfortable with ordering a lot of our stuff online,
(07:29):
which is how I ended up being bold enough to order that rubber dog poop we were talking about earlier.
This led for the demand for efficient freight transportation to grow at exponential rates.
Thus,
the LTL freight industry took off to new levels even after existing for over 100 years.
While some companies have found it difficult to keep up with our new extremely high demand for LTL freight.
(07:51):
Many have thrived and adapted to this more popular mode of transporting freight.
Ultimately,
a net positive for those companies and the trucking industry as a whole in our current and complicated day and age,
it can be difficult to project what will happen in any industry.
And the trucking industry is no exception.
Both LTL and FTL modes are projected to have positive growth in the future as consumer spending increases along with domestic manufacturing and foreign trade.
(08:18):
I'd spoken earlier about how LTL freight usually consists of parcels for us normies.
But current trends in the industry show that oil and gas as well as needs and output from farming and mining are on the uptick as demand for those industries.
Products rise.
In fact,
LTL and FTL modes are projected to grow by 4.3% by 2028.
(08:40):
Crazy,
right,
the trucking industry less than truckload mode has waxed and waned and changed over many years.
The industry has consistently found ways to adapt LTL into whatever is happening in trucking as well as the current state of consumer affairs in our country and throughout the world,
talk about versatility as things rapidly change,
trucking will be working hard to adapt to new demands,
(09:02):
conditions and technologies which is fantastic and will ultimately benefit trucking and the American consumer.
Even with this change,
we'll still be hauling half empty trailers across the country.
Thanks for listening,
everyone.
As always,
I'm Marcus Bridges and I'm going to go wait for my delivery of rubber dog poop and thank a truck driver for making it possible.
(09:23):
We appreciate you stopping by to join us on this very special episode of Trucking Up History presented by Brian Truck lines and make sure to stick around for a new episode of the Brian Truck Line show every other Wednesday at 5 a.m. central.
Until next time,
be safe out there drivers and keep that shiny side up.
(09:43):
Thanks for joining us for this episode of the Brian Truck Line show.
Don't forget to subscribe,
rate and review the Brian Truck Line show on your favorite platform and tune in for new episodes every other Wednesday.
Until next time,
stay safe and keep it rolling.
Welcome to the Brian Truck line show.
I'm your host,
Marcus Bridges.
Thank you for being here today.
A very special edition of the Brian Truck line show today as we kick off episode two with this very exciting episode of Trucking up history.
The history of less than truckload,
less than truckload,
more than trucking.
(00:21):
This is the Brian Truck line show from Northwest Ohio to wherever you are with your host,
Marcus Bridges.
What do you think of when you hear LTL?
Let me guess you're picturing fedex triples cruising down the highway.
You can feel your jaw clench and your knuckles turn white.
As you imagine yourself hauling three trailers down a winding highway.
(00:43):
You come in the cojones of the driver behind the wheel and don't think much else of it.
You already know LTL means less than truckload.
You might already know.
That means the trailers that truck is hauling are carrying as little freight as possible.
Maybe you even know that means each trailer's load is under £2000.
But do you know how LTL hauling as we know it today came about?
(01:04):
We may have forgotten but the realities of modern LTL came about in the semi recent past after the dismantling of Chokehold IC C regulations in the 19 eighties LTL as we know,
it started generating an efficient and profitable way to get parcels from point A to point B.
So join me in exploring how the heck we started hauling sometimes almost empty trailers across the country and what that means for the state of freight.
(01:30):
Let's talk about what exactly LTL hauling is before we get into the history.
Just so we're all on the same page.
Boring semantics.
I know but humor me for a sec.
Will you,
we know LTL stands for less than truckload,
which means on a technical level,
freight consists of packages under 100 and £50 and the total weight of the truckload is under £2000 carried by trailers that are 26 to 53 ft long.
(01:54):
Typically this way of transporting freight is reserved for pedestrian packages.
You know,
like that large order of rubber dog turds I ordered from Hong Kong or?
Oh,
was that just me?
Anyway?
I hope you all got the top gun reference there.
LTO operations look like a hub and spoke much like an old wagon wheel.
With the truck routes being the spokes and the service terminals being the hubs terminals collect local freight in an effort to consolidate freight for an area.
(02:18):
Then that freight is distributed to whichever shippers they work with networks of shippers and hubs can get pretty complicated,
much like a spider web of old wagon wheels with some freight taking up stops at multiple hubs along the way to its destination to be sorted and routed or subjected to inspection.
And from my rudimentary understanding of this system,
eventually,
that large order of rubber dog poop will reach my doorstep.
(02:42):
So why do we use this method of shipping freight?
From an outsider's perspective?
The whole LTL system seems kind of complicated at best and totally overwhelming at worst,
intricate networks of shippers,
freight,
making multiple stops at different hubs across the country.
What gives like most things this has to do with money.
LTL drastically slashes costs for shippers because they're not having to rent out a trailer's full space.
(03:06):
See often LTL freight is made up of relatively small boxes that can be stacked on a pallet and shrink wrapped together that makes loading and unloading quick and easy for drivers or loaders.
That way,
shippers are not having to cover as much loading and unloading time,
which means less costs and quicker turnaround time for everyone consolidated and secured freight also keeps damaged freight at a minimum,
(03:28):
which means shippers are spending less money,
compensating for messed up packages.
Shippers saving money also allows them to tack on Fancy Schmancy A la carte options to their freight shipments,
freeze protection,
residential delivery and a smorgasbord of other options means customized delivery and more earnings for those who work hard to bring us our packages,
(03:48):
the cost effectiveness of LTL doesn't just apply to the boys in big shipment savings like this for companies trickle down to us,
the humble consumer and we end up spending a little less on shipping costs,
allowing us more money to buy frivolous toys for my Corgis and other dumb stuff on the internet.
All right,
now that we've got a general understanding of what LTL freight is and why we use it.
It's time to figure out how the heck we ended up hauling half,
(04:11):
sometimes a quarter of the way full trailers across the country.
Let's reverse it to 1935.
The motor carrier Act makes it so that the railroad has extended authority over the trucking industry.
Initially,
most of the freight in the United States was handled and moved by the rails which was controlled by the Interstate Commerce Commission A K A,
the IC C.
(04:31):
So those guys really wanted to ingratiate themselves and control the newly booming trucking industry,
especially after LTL.
Trucking became a more flexible and cost effective alternative to shipping smaller amounts of freight via the railroads.
In the 19 hundreds.
The IC C wanted to gain control of the trucking industry because the wheels were really starting to fall off the trailers in the 19 thirties,
so to speak.
(04:52):
The Great Depression caused many companies that had been newly founded during the trucking boom to totally flop the less established companies that didn't shutter their doors were on the brink of failure and struggling to make ends meet.
The IC C's initial aim was to make it difficult for newer trucking companies to get their licensing and easier for more seasoned companies to do just that the idea was to lessen the amount of failed and bankrupt businesses in the country.
(05:16):
But ultimately,
the I CCS many regulations led to a chokehold on the industry.
By the time the IC C gained mass control over trucking.
In 1935 there was already an established trucking network in the United States due to the IC C having mass control over almost all modes of transportation.
A more restrictive set of regulations was set in place and rendered many of the pre-existing trucking networks useless regulations,
(05:41):
for example,
kept truckers from hauling home with a full trailer after transporting a load to its destination and that full trailer they'd hauled to its destination was most likely kept to just one certain commodity.
These regulations also led to restrictions on how much or in our case,
how little freight was able to be hauled at one time.
All of the IC C regulations led to a lot of full truckload freight,
(06:03):
a lot of deadheading skyrocketing shipping costs.
And because of the licensing restriction and unhealthy lack of competition in the industry,
the IC C regulations weren't all a total chokehold.
We can partially thank them for the development of the modern interstate system.
A project that came about to support the booming freight industry,
not just for FTL trucking but for LTL as well.
(06:26):
After almost 50 years of operating under the I CCS tight rules,
the trucking industry pivoted again.
The motor Carrier Act of 1980 was a breath of fresh air for the trucking and transportation industries and led to many restrictions including those on freight types and amounts to be lifted.
More efficient trucking networks started to pop up and shipping prices started to fall.
(06:47):
Newer trucking companies found it easier to gain licensing which increased the amount of competition in the industry and open the opportunity for even more or less than truckload freight to be hauled across America.
Now let's put the pedal to the metal and haul ass back to our current modern time.
The invention and popularization of e-commerce has totally changed the freight industry,
(07:07):
particularly our good friend LTL freight.
When e-commerce first took off,
the industry had to adjust its outdated processes to make room for improvement.
In 2020 we saw the same happen when e-commerce was catapulted into many consumers main way of well consuming.
Even after the pandemic,
many of us have gotten comfortable with ordering a lot of our stuff online,
(07:29):
which is how I ended up being bold enough to order that rubber dog poop we were talking about earlier.
This led for the demand for efficient freight transportation to grow at exponential rates.
Thus,
the LTL freight industry took off to new levels even after existing for over 100 years.
While some companies have found it difficult to keep up with our new extremely high demand for LTL freight.
(07:51):
Many have thrived and adapted to this more popular mode of transporting freight.
Ultimately,
a net positive for those companies and the trucking industry as a whole in our current and complicated day and age,
it can be difficult to project what will happen in any industry.
And the trucking industry is no exception.
Both LTL and FTL modes are projected to have positive growth in the future as consumer spending increases along with domestic manufacturing and foreign trade.
(08:18):
I'd spoken earlier about how LTL freight usually consists of parcels for us normies.
But current trends in the industry show that oil and gas as well as needs and output from farming and mining are on the uptick as demand for those industries.
Products rise.
In fact,
LTL and FTL modes are projected to grow by 4.3% by 2028.
(08:40):
Crazy,
right,
the trucking industry less than truckload mode has waxed and waned and changed over many years.
The industry has consistently found ways to adapt LTL into whatever is happening in trucking as well as the current state of consumer affairs in our country and throughout the world,
talk about versatility as things rapidly change,
trucking will be working hard to adapt to new demands,
(09:02):
conditions and technologies which is fantastic and will ultimately benefit trucking and the American consumer.
Even with this change,
we'll still be hauling half empty trailers across the country.
Thanks for listening,
everyone.
As always,
I'm Marcus Bridges and I'm going to go wait for my delivery of rubber dog poop and thank a truck driver for making it possible.
(09:23):
We appreciate you stopping by to join us on this very special episode of Trucking Up History presented by Brian Truck lines and make sure to stick around for a new episode of the Brian Truck Line show every other Wednesday at 5 a.m. central.
Until next time,
be safe out there drivers and keep that shiny side up.
(09:43):
Thanks for joining us for this episode of the Brian Truck Line show.
Don't forget to subscribe,
rate and review the Brian Truck Line show on your favorite platform and tune in for new episodes every other Wednesday.
Until next time,
stay safe and keep it rolling.
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