Large Firms Gain Clout in LTL Freight Market

arcel carrier UPS Inc.'s move into the less-than-truckload market by purchasing Overnite Corp. brings the industry closer to a state where a small number of very large carriers are able to offer numerous types of trucking services, said industry analysts and two executives at UPS's competitors.

It was considered essential for UPS to gain entry into the LTL market, analysts said, as carriers compete to meet the increasing demand from shippers for reliable service regardless of the freight shipment size.

However, William Zollars, chairman of UPS's' competitor Yellow Roadway, said the nation’s largest trucking company may face “labor challenges” in its merger. Overnite, which fought a long and bitter battle to keep the Teamsters union out, would now be incorporated as part of the country’s largest employer of Teamsters members.

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