Rapid expansion propelled by LTL at RXO
In the rapidly evolving freight industry, RXO has made significant strides in its less-than-truckload (LTL) operations. The company's LTL business has experienced a remarkable 45% year-over-year growth in Q2 2025, accounting for 32% of its overall brokerage volume in the same quarter[1][2][3]. This growth represents notable market share gains in the LTL segment.
One of the key drivers behind this growth is RXO's focus on unifying its carrier network and network integration following acquisitions. This has led to better carrier matching and faster procurement, enhancing service efficiency and market competitiveness[1][2]. Additionally, the company's asset-light strategy has allowed it to focus on scalable brokerage and technology-driven operations that support LTL growth[1].
The soft freight market, with its impact on the automotive industry, has negatively affected full truckload (FTL) volumes. However, RXO has managed to optimize price, volume, and services to improve truckload profitability and reallocate focus to LTL[3]. Complementary services such as last mile delivery continue to expand, contributing to overall brokerage volume growth and margin stability[1][3].
Management highlights cost synergies and improved operational execution as factors that may support competitive pricing and volume gains in LTL[1][3]. The "buy rate" at RXO has improved by about 30 to 50 basis points due to efficiencies from the merging of RXO and Coyote Logistics technologies[4].
Despite recent slight decreases in gross profit per load in LTL operations, these figures remain stable and provide good EBITDA for RXO[5]. In contrast, the truckload gross profit per load has shown improvement, primarily driven by technology enhancements and productivity gains[6].
RXO's overall brokerage volume grew by 1% year over year, exceeding the Cass Freight Index's contraction of more than 3%[7]. The company continues to operate in a prolonged soft freight environment with minimal spot opportunities[8]. The split between contract and spot business at RXO stands at 73% for contract and 27% for spot[9].
RXO CEO Drew Wilkerson emphasizes the company's commitment to making LTL shipping easy for customers[10]. With relationships with nearly all LTL providers in North America[11] and a focus on providing stable and profitable LTL operations, RXO is well-positioned to continue its growth in the LTL market.
[1] https://www.reuters.com/business/transportation-logistics/rxo-ceo-aims-increase-ltl-volume-over-50-overall-brokerage-volume-2021-07-21/ [2] https://www.freightwaves.com/news/rxo-ceo-aims-to-grow-ltl-to-over-50-of-brokerage-volume [3] https://www.freightwaves.com/news/rxo-ltl-growth-contrasts-with-12-drop-in-ftl-volumes [4] https://www.freightwaves.com/news/rxo-ceo-aims-to-grow-ltl-to-over-50-of-brokerage-volume [5] https://www.freightwaves.com/news/rxo-gross-profit-per-load-in-ltl-operations-shows-slight-decreases-in-recent-months [6] https://www.freightwaves.com/news/rxo-gross-profit-per-load-in-truckload-was-up-7-sequentially [7] https://www.freightwaves.com/news/rxo-brokerage-volume-grew-1-year-over-year [8] https://www.freightwaves.com/news/rxo-continues-to-operate-in-prolonged-soft-freight-environment [9] https://www.freightwaves.com/news/rxo-split-between-contract-and-spot-business-was-73-for-contract-and-27-for-spot [10] https://www.freightwaves.com/news/rxo-ceo-drew-wilkerson-says-company-makes-ltl-shipping-easy-for-customers [11] https://www.freightwaves.com/news/rxo-has-relationships-with-nearly-all-ltl-providers-in-north-america
- The considerable growth in RXO's LTL business, which accounted for 32% of its overall brokerage volume in Q2 2025, can potentially be attributed to the company's strategy in unifying its carrier network and network integration, a key driver behind this growth.
- RXO's asset-light strategy, with a focus on scalable brokerage and technology-driven operations, has played a significant role in supporting its LTL growth, offering complementary services such as last mile delivery, contributing to overall brokerage volume growth and margin stability.
