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National LTL: Highway hall-of-famers

By Staff -- Logistics Management, 8/1/2005

The ranks of national less-than-truckload (LTL) carriers have grown smaller this past year. First Yellow Transportation and Roadway Express joined forces, then that combination acquired fellow LTL carrier, USF Corp. Later on, UPS bought Overnite, shrinking the pool even further.

Not only has the marketplace consolidated, but remaining LTL carriers also face numerous obstacles. They must find good drivers to put behind the wheels of their big rigs while finding efficiencies to overcome the relentless rise in diesel fuel prices. While they work on those pressing issues, LTLs must also meet tougher demands from shippers.

Given those challenging circumstances, it's really no surprise that only one national LTL carrier met our readers' high expectations for quality service. The most valuable player in the national LTL category was Yellow Transportation, which also won in last year's survey. The sole award may be a result of higher expectations in this category, coupled with the fact that there are fewer truly national LTLs than in past years. The overall weighted score—the benchmark number that a carrier had to exceed to be a winner—rose from 31.57 to 33.91.

For more information on Quest for Quality, click here.

That benchmark rose because four of the five attribute ratings posted increases over last year. On-time performance traveled from 9.88 to 10.08, value rose from 7.42 to 8.28, information technology climbed from 4.07 to 4.49, and customer service jumped from 6.10 to 6.98. Only equipment and operations hit a slight bump in the road, falling slightly from 4.10 to 4.07.

Likewise, shippers named only one MVP in the category for multiregional LTL carriers. FedEx Freight took the pennant in this category, just as it did last year.

The composite weighted scores for multiregional LTL truckers rose, raising the bar for winning this category as well. The overall rating increased from 32.59 to 34.42. Like the national LTL category, four attribute grades were higher than they were last year. The on-time performance ranking gained traction, rising from 10.26 to 10.34. The value tally moved up from 7.76 to 8.60, while information technology rolled forward, from 4.15 to 4.46. The score for customer service climbed as well, traveling from 6.18 to 6.99. The only rating that saw any braking action was equipment and operations, which skidded from 4.23 to 4.03.

Two surface package carriers picked up pennants in 2005. UPS and FedEx Ground, both winners for the past two years, were once again lauded for their service quality. Ratings increased in this category as well, indicating that carriers are stepping up efforts to improve service and are raising expectations for higher performance in the future.

The overall weighted score for surface package carriers sped forward, from 35.18 to 37.07. Increases in four ratings contributed to the forward momentum. The performance rating inched ahead, from 11.20 last year to 11.21 this year. The value number, on the other hand, shot up from 8.39 to 9.09. The information technology rating rose from 4.59 to 4.98, and customer service posted a solid gain by climbing from 6.35 to 7.29. The one category to decline was equipment and operations, which dropped from 4.65 to 4.50.

National LTL
On-time Performance Value Information Technology Customer Service Equipment & Operations Weighted Score
National LTL Carriers
Yellow Transportation 10.39 8.51 4.73 7.19 4.19 35.01
Average 10.08 8.28 4.49 6.98 4.07 33.91
Multiregional LTL Carriers
FedEx Freight 11.49 8.91 5.14 7.53 4.44 37.51
Average 10.34 8.60 4.46 6.99 4.03 34.42
Surface Package Carriers
UPS 11.87 9.31 5.32 7.61 4.76 38.86
FedEx Ground 11.40 8.96 5.17 7.48 4.76 37.49
Average 11.21 9.09 4.98 7.29 4.50 37.07
All scores are weighted. Weighted scores are determined by multiplying the average raw scores by the average importance of each attribute (1 = least important; 5 = most important). To find the attributed weights for this category, see the introduction to the Quest for Quality report.
Source: Logistics Management, Reed Research Group

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