The 2026 MODECOLD State of the Temp-Controlled LTL Industry Survey from Mode Transportation reveals an industry that is both resilient and strained, a sector that continues to deliver essential goods across North America while navigating a convergence of economic, operational, and structural pressures.
“The temp-controlled LTL industry is entering a period in which operational excellence cannot be achieved by carriers alone,” the study says.
The “shipper of choice” is described as being able to offer flexible, carrier-centric scheduling; efficient, driver-friendly facilities; clear, proactive communication; partnership mindset; understanding of LTL complexity; and fair, responsible financial practices.
Key takeaways:
· Respondents fall slightly below a neutral stance (2.88/5.00) when considering the U.S. and global economies, as well as their own business outlook for the coming year.
· Half of the respondents (50%) describe current demand as increasing in North America. Most say rates have either no change (45.2%) or increased slightly (33.3%), compared to a year ago. The broader business outlook is notably upbeat, with 46.3% indicating they are somewhat or very positive about the next 12 months. More than eight in 10 (84.2%) see food retail/grocery as the most promising customer segment for growth in the year ahead.
· 66.6% of respondents reported that rates have remained flat or declined over the past year. A majority (83.3%) also identified customer rate pressure as their top challenge, followed by driver recruitment/retention at 45.2%. This combination is creating a financial squeeze that is undermining equipment maintenance, identified as the most severe challenge, and hindering driver recruiting and retention.
· The combination of flat rates and rising customer rate pressure is creating a volatile environment, making operational efficiency more critical than ever. With 33% of respondents acknowledging that their technology adoption lags behind their peers, there is significant room for improvement. Because enhanced shipment visibility remains one of the most frequent customer requests, carriers that prioritize technology investments in this area stand to strengthen their position and deepen customer trust.
· Respondents expect AI-based routing to be the most transformative force in temp-controlled LTL over the next three years, with advanced telematics close behind.
· Respondents report rising operating costs over the past 12 months, with insurance and equipment/maintenance emerging as the two most significant increases.
· Over half of respondents selected greater shipment visibility (64.3%) and clearly defined pickup/delivery windows (59.5%). They identified their two most common service challenges as late deliveries (58.5%) and delivery program compliance (51.2%).
· Four in 10 respondents (40.5%) report rising competition in the temp-controlled LTL space, while another one-third (35.7%) say competitive intensity remains steady.
· More than two-thirds of respondents (69.3%) believe technology/automation will be the long-term trend having the greatest impact on the industry over the next five years, followed by market consolidation (47.6%).
· Respondents rated current economic conditions in the United States somewhat more favorably than conditions globally, although the highest percentage in both instances was neutral, and few described economic conditions as strong or very strong at either level. Over the next 12 months, they foresee more improvement within the U.S. economy than the global economy.
· Respondents named inflation and interest rates as the economic/geopolitical issues having the greatest impact on their businesses right now, followed by the election cycle/policy uncertainty and trade/tariff/sanctions changes.
