Mordor Intelligence expects Mexico’s LTL market to register a compound annual growth rate of 5.4% between 2024 and 2030. What is LTL? It refers to less-than-truckload freight and is used for shipments when multiple carriers’ freight is on the same trailer rather than having a single company’s freight exclusively on an individual trailer. Thus, multiple LTL shipments are combined on one truck to fill it as close to capacity as possible.The trailer is transported over a longer distance and then unpacked and unbundled at the destination. LTL is especially suited to the needs of small businesses that may require frequent, lower volume shipments and cannot economically utilize a full trailer.

LTL market

According to the same source, the Mexican LTL market grew at a compound annual growth rate of 44.3% between 2016 and 2021.Freight Technologies noted that this makes it one of the fastest growing logistics segments in North America. Also, Mordor Intelligence projects the U.S. and Canadian 3PL markets to grow at a compound annual growth rate of 3.4% and 4.4%, respectively between 2024 and 2030. Other explanatory: 3PL refers to third-party logistics services, a term used to describe services that help retailers manage their supply chain. Common 3PL services include transportation services, warehouse and inventory management, order fulfillment, shipment coordination, retail distribution, exchanges and returns.

E-commerce

According to ECDB, the e-commerce market within Mexico is expected to grow at a compound annual growth rate of more than 20% from 2024 to 2028. Freight Technologies believes that this growth in the trade freight market is driven by growing national economies and increasing trade flows, which are not only from one region to another, but are more decentralized and fragmented due to the growth of large online retailers such as Amazon and MercadoLibre.According to the 34th Annual State of Logistics Report written by Kearney, the domestic U.S. truckload freight market was estimated at $896 billion in 2022.