TFI’s Bedard Optimistic on U.S. LTL, But Issues Linger

TFI’s Bedard Optimistic on U.S. LTL, But Issues Persist

Alain Bedard, CEO of TFI International, has never shied away from calling out the problems in his U.S. less-than-truckload (LTL) operations. Since acquiring UPS Freight in 2021, TFI has worked to turn the unit around, but challenges remain. On a recent earnings call, Bedard expressed cautious optimism about the U.S. LTL market, citing improving demand and pricing discipline. However, he acknowledged that integration hurdles, driver shortages, and cost pressures continue to weigh on performance.

The State of U.S. LTL

TFI’s U.S. LTL segment, now branded as TForce Freight, has been a focal point for the company. Bedard noted that the unit is seeing “better trends” in tonnage and yield, but margins still lag behind Canadian operations. The LTL market overall has faced headwinds from soft industrial production and shifting supply chains. Yet, Bedard believes that disciplined capacity management and a focus on profitable freight will drive improvement.

For carriers and drivers, this signals a market where rates may stabilize after a volatile period. According to industry data, LTL spot rates have firmed up in early 2026, with some lanes seeing 3-5% increases year-over-year. However, carriers must still contend with rising costs, including insurance and equipment.

Persistent Issues: Integration and Labor

Bedard highlighted two key issues: the ongoing integration of legacy UPS Freight systems and a tight labor market for drivers. “We still have work to do on the technology side,” he said, noting that merging IT platforms has been slower than expected. This has caused billing and operational inefficiencies that frustrate both shippers and drivers.

Driver recruitment remains a challenge across the industry. With over 4,300 drivers on LMDR’s platform and 650,000+ FMCSA-verified carriers indexed, the market is competitive. TFI has raised pay and improved home time to attract talent, but retention is still a concern. As driver identity fraud becomes more prevalent, carriers must also invest in verification to protect their fleets.

What This Means for Truckers

For owner-operators and fleet carriers, TFI’s outlook offers a mixed picture. On one hand, a recovering LTL market could mean more consistent volume and better rates. On the other, carriers must navigate rising costs and regulatory pressures. The FMCSA’s enhanced Clearinghouse ID verification, detailed in this article, is one example of how compliance is tightening.

Bedard’s optimism is tempered by reality: “We’re not out of the woods yet,” he said. But for drivers who align with well-managed carriers, opportunities exist. LMDR’s AI matching platform connects drivers with carriers that prioritize safety and efficiency, reducing downtime and increasing earnings.

The Road Ahead

TFI’s experience mirrors broader industry trends. As the LTL sector adjusts to post-pandemic demand patterns, carriers that invest in technology and driver satisfaction will lead. Bedard’s focus on yield over volume suggests a shift toward quality freight, which could benefit experienced drivers.

For those considering LTL work, understanding the nuances of this segment is key. Check out our insights on cargo theft trends to stay aware of emerging risks. And if you’re a carrier looking to optimize your fleet, explore how LMDR’s platform can help you find qualified drivers in under 24 hours.

FAQ

Q: Is TFI’s U.S. LTL business profitable now?

A: Not yet at target margins, but Bedard says trends are improving. The unit is expected to reach profitability by late 2026 as integration completes.

Q: How does the driver shortage affect LTL carriers?

A: It forces carriers to raise pay and improve conditions. LTL drivers often enjoy more predictable schedules and home time, which can be a draw.

Q: What should drivers look for in an LTL carrier?

A: Look for carriers investing in technology, safety, and driver support. Check out LMDR’s carrier reviews and matching tools to find the best fit.