SMC3 conference predicts technology to play a major part in recovery for the LTL industry

From autonomous trucks to AI, the SMC³ “JumpStart” conference, held on January 26-28 in Atlanta, Georgia, provided the over 500 attendees with comprehensive view of the trucking industry, including its challenges and opportunities.

A leading provider of transportation data and logistics technology, the SMC³ JumpStart conference annually provides a unique forum for logistics and transportation experts to share their real-world insights about the industry landscape and best practices to remain competitive in a highly fragmented market.

Despite the weather — winter storm Fern with its ice and rain — JumpStart attendees broke-the-ice with stories of cancellations and bonded over travel struggles. And the attendees were rewarded by a content driven conference covering a wide range of topics.

Freight Recession Continues For LTL

For the less-than-truckload (LTL) industry, conditions continue to be challenging as the market enters the fourth year of a freight recession. Rising operational costs, rate pressure, and economic uncertainty are all factors that require carriers to control costs and grow revenue in an increasingly complex market. Some industry experts think that the road to recovery is being led by technology. Carriers have moved beyond questioning the necessity of technology solutions and are now focused on selecting the most effective tools and strategies for seamless implementation. There is also greater acceptance among carriers for newer technologies like Artificial Intelligence (AI). Once viewed as an interesting concept, but not practical for trucking, AI is now being deployed by carriers to drive efficiency and improve customer satisfaction, working with employees, not replacing them.

This theme resonated throughout the recent SMC³ Conference. The event’s keynote speaker, Peter Sheahan, Founder and Group CEO of the Karrikin Group, told the SMC³ audience that change is not going to slow down, but increase in the coming years. Innovations and disruptions will occur across many markets, and he said, “The speed with which a company’s leadership team goes from awareness of a changing disruption to responding will determine which companies are successful.”

Supply & Demand Imbalance Still Prevalent

One of the biggest disruptions to the supply chain was the COVID-19 pandemic. Carriers added trucks and drivers that were no longer needed when freight volumes began to shrink. Consumer buying practices changed, and uncertainty about the economy was impacting buying decisions, leading to lower inventories. This imbalance is one of the factors that led to a high number of trucking company bankruptcies in 2025. Capacity may be reduced, to some degree, in 2026 due to a regulatory change. A renewed focus by the Federal Motor Carrier Safety Administration (FMCSA) on the removal of non-domiciled and non-English speaking drivers from U. S. highways, an approach designed to improve safety for the motoring public, will likely result in a reduction in capacity.

Mergers and acquisitions are also impacting capacity. In 2025, one of the most notable was Knight-Swift Transportation’s strategy to strengthen its truckload network by creating a large less-than-truckload network. Knight-Swift acquired AAA Cooper Transportation, Midwest Motor Express, and Dependable Highway Express, and by the end of 2025, the company had expanded its LTL network to 173 across 35 states. Adam Miller, CEO of Knight-Swift, told the SMC ³ audience that the acquisitions were intended to create synergies while expanding the company’s footprint. He noted that truckload and less-than-truckload networks operate very differently.

“The LTL industry is far less cyclical than the truckload market,” he said. The differences can serve as a benefit by driving a steady flow of business to Knight-Swift. Miller also commented that the size of the expanded Knight-Swift company is proving to be an effective lever in procurement discussions. Miller said that there is still much work to be done to create the new Knight-Swift brand. He recognizes the value of technology but takes a measured approach to investments. His leadership team thoroughly examines every detail of the business, evaluating each line item to identify areas for improvement.

Effective Pricing: Data and Discipline

Pricing is crucial to a carrier's success. Companies must navigate between legacy NMFC rates and new dimension-based rates. To be competitive, companies are using both technology and increased discipline to drive pricing decisions. Jon Parker, Estes Express’s Director of Yield Management, told the SMC³ audience that the company has a proprietary pricing system that helps drive informed decisions and provides the data needed to offer competitive rates. He said that a company needs to understand the total cost of handling any shipment before proposing a rate.

Clete Cordero, Vice President of Pricing and Traffic for Southeastern Freight Lines, told the SMC³ audience, “We don’t want to chase low-margin freight.” He explained that shippers who shop only based on price are likely to leave one carrier for another for a small rate difference. With the time and effort of onboarding a new customer, carriers are being more selective about the freight they pursue. Another indication of this view is the rising number of rejections in the spot freight market. Carriers and independent operators are declining to bid on freight that does not fit their networks.

He concluded his remarks stating that, “Southeastern competes with the same differentiator we have had for 75 years, our people.” He went on to say that there had never been a layoff of employees in the company’s history.

Technology is Meant to Support Employees, not Replace Them

A commitment to employees was a key message during recent earnings calls and investor interviews with XPO’s CEO, Mario Harik. Technology is a cornerstone of XPO’s strategic vision, and with a former CIO at the helm, the company is aggressively adopting new technologies like AI. He said, “XPO uses technology to improve operational efficiency and enhance employee productivity."

Erin Goheen, Vice President of Technology for XPO, echoed his words in her presentation at the SMC³. She said, “I tell my team at XPO, if you are developing a solution for a specific job, you’d better understand the job.” To that end, Goheen works with human resources and various departments to make it easier for employees to handle meaningful work by eliminating repetitive, low-value tasks.

AI Is Not Magic, But A Tool to Drive Efficiency

XPO is using AI in its linehaul network to improve asset utilization and freight flows. Goheen said, “AI is helping us make smarter network decisions.” The company is also evaluating route optimization technology for its pickup and delivery network to improve stops per hour and eliminate unnecessary miles.” These models have reduced empty miles by 12% and diversions by 80%. A diversion occurs when freight routes must be changed in real-time due to an unexpected delay or other issue.

Some improvements begin before a load plan is ever created. Goheen explained that at XPO, every movement made by a dockworker is pre-determined, and directions are given regarding which freight to work next, where it should be staged or loaded, and whether a load is ready to leave the terminal.

“We are using AI to support a system we developed to provide a checklist of prerequisites for closing trailers,” said Goheen. “Dockworkers take photos before closing a trailer, and a trained AI model analyzes those images in real time to confirm compliance with loading standards, such as proper strapping, airbag placement, and safe stacking. If an issue is detected, the system prevents the trailer from being closed until corrections are made.”

XPO is also using AI to support its sales team. By eliminating time-consuming administrative tasks, XPO allows sellers to spend more time with potential customers and less time chasing leads. “By automating routine processes and surfacing the right information at the right time, technology becomes a support system rather than a substitute,” said Goheen. She also noted that customer service has been positively impacted by AI. In the past, long management queues led to slow response times, one of the most common customer complaints. Today, AI drafts responses to most customer service questions within minutes. However, these messages are reviewed by humans before being sent.

Goheen said XPO is looking at ways for AI to be embedded in its Customer Response Management (CRM) tool. An illustrative instance is churn analysis. Instead of discovering a problem after a customer is no longer tendering freight to XPO, salespeople know which relationships are at risk and can engage in conversations prepared, informed, and focused on solutions. XPO is also using technology to make customer-facing portals self-service. This approach provides information quickly and does not require telephone calls or emails, which are time-consuming for the carrier and its customers.

The Path Forward is Uncharted, but Strategies and Tools are Available Now

There are many variables impacting the trucking industry in 2026, and carriers are choosing varied strategies for success in the future. Peter Sheahan advised leaders to see change as something they actively shape and participate in, not just experience. He also reiterated the importance of being ahead of disruptions.

“The companies that win are not the ones who act last,” said Sheahan.