XPO Rolls Out AI to Rewire LTL Shipping

Smart Logistics, Streamlined

XPO is embracing artificial intelligence to recalibrate its less-than-truckload (LTL) freight model, using cutting-edge tech to minimize miles traveled and reduce freight handling. By leveraging AI tools to optimize terminal connections and routing logic, XPO can not only save on fuel and labor costs but also reduce its network complexity. According to Dave Bates, XPO’s chief operating officer, the AI deployment supports faster freight movement and creates more consistent service for customers in an industry increasingly challenged by irregular volumes and delivery expectations. XPO claims the result is a leaner, more agile operation better suited for the volatile demands of modern shipping.

From Terminals to Algorithms

Rather than expanding physical infrastructure, XPO is tapping into machine learning to fine-tune how existing terminals interact. The AI models analyze historical shipments, traffic patterns, and capacity data to recommend improved routes, enabling more direct freight flows with fewer touches. This shift comes as customers demand faster and more reliable deliveries, forcing LTL carriers to rethink how freight is moved through networks. With the technology already deployed across a majority of its nearly 290 LTL terminals, XPO saw more than 2% reduction in total miles per shipment—a small change that translates into major savings at scale across the company’s massive footprint.