TFI’s Uncertain Timeline for LTL Expansion
TFI International, a major North American transportation and logistics company, is reconsidering its timeline for expanding its less-than-truckload (LTL) operations in the U.S. Despite previous plans to make substantial acquisitions in 2025, CEO Alain Bédard has now suggested that major deals may not happen this year.
During TFI’s Q4 2024 earnings call, Bédard initially stated that significant acquisitions were unlikely in 2025. However, he later reversed his stance, emphasizing that TFI still needs to make a bold move to expand its LTL presence. The company faces challenges with TForce Freight, its U.S. LTL carrier acquired from UPS in 2021, and needs to build sufficient scale to support a planned spin-off of its truckload division.
Bédard explained that with 20,000 shipments per day, TFI’s U.S. LTL operations lack the density required to compete with top players like FedEx Freight, Old Dominion, and XPO. The company needs more capacity to improve performance and profitability in a competitive LTL market.
Additionally, TFI announced plans to move its headquarters from Montreal to the U.S., though no specific timeline or location has been provided.
Why TFI Needs a ‘Brother’ for TForce Freight
Rather than merging with another carrier, Bédard stated that TFI is looking for a “brother” to run alongside TForce Freight.
- Non-Merger Strategy: Unlike many LTL carriers consolidating through mergers, TFI prefers to keep companies separate to preserve their culture and operational independence.
- Asset-Based vs. Asset-Light: TFI is open to buying a nonunion, asset-based carrier to complement TForce but is also considering an asset-light acquisition if the right opportunity arises.
“Never say TFI wants to buy a company and merge it with A, B, or C,” Bédard stated. “We hate mergers. We keep the companies separate.”
Recent Acquisitions & LTL Expansion
While waiting for a larger acquisition, TFI has been steadily expanding its U.S. LTL presence through smaller acquisitions:
- March 2024: Hercules Forwarding – A cross-border carrier specializing in U.S.-to-Canada freight. The company operates 31 terminals, 210 trucks, and nearly 600 trailers.
- November 2024: Keystone Western – A smaller truckload and LTL carrier based in Canada with terminals in Winnipeg, Waterloo, and Vancouver.
TFI is also investing in LTL terminal infrastructure to support its growth. In February 2025, the company purchased an ex-Yellow Corp. terminal in Fayetteville, N.C., for $700,000.
However, competition for LTL terminals is fierce. Other major carriers—including Knight-Swift, ArcBest, Estes Express, R+L Carriers, and Central Transport—have also been acquiring terminals to expand their networks.
Challenges in Scaling LTL Operations
The biggest challenge for TFI’s LTL expansion is achieving scale while maintaining profitability.
- Infrastructure Costs: LTL carriers require large terminal networks, but land near major metropolitan areas is expensive and scarce.
- Market Competition: Established LTL players like FedEx Freight, XPO, and Old Dominion already dominate the space, making it difficult for smaller carriers to gain market share.
- Economic Conditions: The North American freight market downturn has made acquisitions more financially risky, delaying TFI’s expansion plans.
Despite these challenges, Bédard believes that the right opportunity will arise. The company remains committed to growing its LTL operations and will continue targeted acquisitions rather than large-scale mergers.
“You have to be bold,” Bédard said, “but it’s always about trying to have balance.”
Looking Ahead: What’s Next for TFI?
TFI’s long-term goal remains to strengthen its LTL operations and spin off its truckload unit when conditions improve. The company is keeping its options open, waiting for the right acquisition opportunity to scale TForce Freight effectively.
With competitors aggressively expanding their networks, the pressure is on TFI to make strategic moves without overextending itself. Whether the company finds its “brother” carrier in 2025 or delays its plans further, one thing is clear: size matters in the LTL market, and TFI knows it needs to grow.
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