Knight-Swift Expands Into Less-Than-Truckload Market with Acquisition

Knight-Swift Transportation Holdings, historically known for its focus on truckload operations, has made a significant strategic expansion into the less-than-truckload (LTL) market. This move was solidified by the acquisition of Dependable Highway Express on July 30, 2024, marking a pivotal shift in the company's operational strategy.

Strategic Acquisition and Expansion

The acquisition of Dependable Highway Express is a cornerstone in Knight-Swift's expansion strategy, adding 14 terminals and 465 doors to its operations. Before this acquisition, Knight-Swift operated 133 terminals. This expansion has resulted in an increase in average shipments per day to 24,918.

This move comes as part of a broader trend in transportation and logistics dealmaking, where strategic acquisitions are becoming a focal point. Knight-Swift, which ranks No. 7 among for-hire carriers and No. 31 on the TT Top 100 logistics companies list, has been making calculated moves to bolster its LTL capabilities by unifying its operations under AAA Cooper Transportation (ACT).

Integration and Operational Efficiency

The final migration to ACT's financial systems was completed by July 2025, a transition accomplished in record time. This integration is expected to enhance operational efficiency and productivity, with a focus on unified labor visibility—a necessary component for realizing productivity gains.

Knight-Swift's expansion into the LTL market also includes assets from the bankrupt Yellow Corp. The acquisition strategy is designed to tap into the synergy potential between LTL and truckload operations, a sector where significant untapped opportunities exist.

Technological Challenges and Opportunities

As Knight-Swift navigates this new market landscape, the role of technology in transportation and logistics cannot be overlooked. AI-driven digital freight matching platforms are emerging, transforming the brokerage aspect of logistics, and reshaping transportation expectations. However, a recent DHL report indicates that supply chain technology is still falling short of industry needs.

Nearly half of the companies surveyed cite inadequate technological solutions, struggling to integrate new tools into their supply chain operations. The report highlights the need for real-time visibility and system integrations, which TMS platforms are evolving to provide. The NextGen Supply Chain Conference, set to take place in Nashville in 2026, is expected to address these technological challenges and trends, including AI reshaping the industry.

Future Outlook and Risks

Despite these technological hurdles, the transportation sector is poised for growth. U.S. rail carload and intermodal volumes are gaining, and the demand for efficient logistics services continues to rise. However, the industry must also brace for risks, as cyberattacks on logistics are expected to double by 2026.

Labor shortages, impacting warehouse operations, add another layer of complexity to the logistics landscape. Knight-Swift's strategic expansion into the LTL market is a timely maneuver that may help mitigate some of these challenges by diversifying its operational capabilities and leveraging synergies between LTL and truckload services.

As the industry continues to evolve, Knight-Swift's strategic decisions and ability to integrate new acquisitions effectively will likely play a critical role in its future success.