Local General Freight Trucking

The 43,570 local general freight trucking companies in the US provide truckload (TL) and less than truckload (LTL) transportation services within cities and over short distances with drivers returning home each night. Trucking firms transport a wide variety of goods, but the majority is boxed or palletized. Local routes are typically less than 150 miles.

Failure to Meet Safety Requirements

Failure to meet safety regulations can result in investigations, fines, loss of license, and idled vehicles.

Emergence of Online Freight Coordinators

The local freight trucking industry is benefiting from online sites, like Uber Freight and TruckLoads, that match shippers and distribution centers with local freight carriers.

Aug 11, 2026 - Shippers Turn to Mini-Bids as Tariffs Disrupt Freight Market

• Tariff-related freight volatility is adding to the pressure on US shippers, which are increasingly using short-term “mini-bid” contracts as tightening truck capacity, rising rates, and failing routing guides make annual freight contracts less dependable. Shifting trade flows and tariff-driven swings in import volumes have made freight demand harder to predict, while available trucking capacity continues to shrink. Rather than rebidding entire networks, shippers are targeting specific regions or lanes to quickly secure dependable capacity, with Knight-Swift, Werner, and J.B. Hunt reporting increased mini-bid activity. JOC’s Truckload Capacity Index fell 1.1 percentage points to 78.7 in the second quarter as large carriers limited fleet expansion. Unlike recent years, when off-cycle bids often sought lower prices, today’s mini-bids are primarily about securing trucks, and FTR expects contract rates to continue rising through the third quarter of 2027.
• Truckload carriers are entering their strongest pricing environment since the freight downturn began in 2022 as shrinking capacity, rather than surging freight demand, pushes rates higher. S&P Global’s DAT Freight & Analytics' Spot Premium Ratio - a leading indicator of contract pricing - has climbed to about 30%, a level historically associated with some of the industry's strongest pricing cycles. New dry-van contract rates in routing guides are already averaging 11% higher than a year ago, while the Bureau of Labor Statistics' long-distance truckload Producer Price Index rose 21.4% year over year in June. DAT chief scientist Chris Caplice expects favorable pricing to continue through at least mid-2027 as several years of fleet reductions, combined with higher borrowing costs, insurance premiums, tighter lending standards, and stronger regulatory enforcement, keep capacity constrained and give carriers greater leverage in contract negotiations.
• The trucking industry's financial pressures intensified in 2025 as operating costs climbed to a record $2.336 per mile, up 3.4% from a year earlier, according to the American Transportation Research Institute's (ATRI) 2026 Analysis of the Operational Costs of Trucking. Excluding fuel, costs rose 4.2% to $1.854 per mile, driven by sharp increases in tolls (13.2%), repair and maintenance (8.6%), driver benefits (6.6%), and tires (6.4%). In response to weak freight demand and stagnant rates, carriers cut capacity by 2.4%, left 10% of trucks unseated on average, and reduced non-driver staffing by 7.8%, yet profitability remained strained. Operating margins for truckload and refrigerated carriers stayed below 1%, while flatbed carriers posted an average operating loss. ATRI said first-quarter 2026 data indicate these cost pressures have largely continued, even as freight rates begin to improve.
• Rising diesel prices are prompting many US truck drivers to slow down in an effort to save fuel, according to transportation analytics firm INRIX. Commercial trucks were traveling about 4% slower in late April than at the start of 2026, while average trip lengths also declined slightly. With diesel prices up 44% since late February, owner-operators - who often pay fuel costs themselves and cannot always pass them on to customers - are especially motivated to improve fuel efficiency. Drivers report reducing cruising speeds by a few miles per hour, which can save hundreds of dollars a week, though it may also mean longer working hours for those paid by the mile. Many truckers are also using other fuel-saving practices, such as gentle acceleration, cruise control, and limiting air-conditioning use. However, not all drivers are slowing down, as some newer trucks achieve optimal fuel economy at higher speeds.

Industry size & Structure

A typical local general freight trucking company operates out of a single location, employs an average of 7 workers, and generates about $1.4 million annually.

• The local general freight trucking industry consists of about 43,570 companies, which employ about 317,250 workers and generate about $61.3 billion annually.
• The industry is fragmented with the 50 largest firms representing just 10% of revenue.
• Firms range from the small operations that serves a single local area using few owned trucks, to large firms that operate a network of locations across the nation using leased vehicles and servicing many local markets.
• About two dozen large firms have networks of 10 or more establishments, which are regionally or nationally dispersed to serve specific cities.
• Large companies include Jack Hood Transportation, Holland, Reddaway, New Penn, Cowan and EPES.