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Navigating LTL Freight Shipping: Key Strategies for Cost-Effective Small Load Transportation

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Global Logistics, Global Trade Daily, Trucking

Navigating LTL Freight Shipping: Key Strategies for Cost-Effective Small Load Transportation

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Less-Than-Truckload (LTL) freight shipping is an efficient and cost-effective method for transporting smaller loads that don’t fill an entire trailer. As carriers navigate the potential of LTL for their business, it is important to be fully aware of how it works before making any decisions about engaging in this type of shipping.

Read also: Benefits of LTL Freight Shipping

LTL Background

LTL is considered when shippers don’t need an entire trailer to move their freight, they often opt for less than truckload freight shipping, and typically the most affordable way to transport smaller loads.

Less than truckload freight is usually the preferred method for loads between 150 and 15,000 pounds that do not require the use of a whole trailer and it can maximize loads for carriers by combining multiple LTL freight shipments into full truckloads.

How does LTL freight shipping work?

LTL freight shipping works by combining partial loads from multiple shippers. This usually (but not always) creates multi-stop truckloads. Pricing is based on space and weight, classification of the goods being shipped, and pickup and delivery destinations. Less than truckload freight shipping can include standard, expedited, or date-guaranteed shipments. Carriers can also offer additional freight services for shippers, including:

  • Lift gate pickup or delivery
  • Inside pickup or delivery
  • Residential pickup or delivery
  • Reweighing
  • Reclassification
  • White glove service

Because of the additional complexities involved, carriers can charge additional shipping fees, boosting their profits.

What factors should determine your LTL freight rates?

Several factors impact how carriers and brokers price their LTL freight rates. Take these things into account when determining freight rates:

  • Market demand. LTL freight rates are impacted by the amount of current demand and space availability on trailers.
  • Freight classification. Freight class is based on density, stowability, handling, and liability.
  • Distance. How far are you going in total? The more miles between points, the greater the cost for everyone.
  • Destination. Where goods ship also impacts costs. Shipping along established lanes to major hubs will cost less than making multiple rural or residential deliveries.
  • Dimensions and weight. The dimensions and weight of the shipment determine freight class and directly impact rates. Oversized or oddly shaped items, for example, take up more space. Smaller (but denser items) can limit the number of other items that can be shipped.
  • Deadhead miles. Having to drive an empty truck from delivery to a new pickup should also impact pricing since carriers have to bear the cost of empty miles.
  • Availability. You can only ship LTL freight when there’s available space on trailers, which varies based on seasonality and market demands.
  • Accessorials. Extra services cost extra. Carriers can charge more for things like lift-gate service, delivery to limited access or residential locations, inside delivery, or white-glove services.
  • Fuel costs. Fuel costs tend to vary significantly based on market volatility and location.

Matching the right LTL loads to get the maximum revenue potential can be time-consuming and complex. In today’s fast-paced world, decisions often have to be made quickly. The key is better data and understanding rate trends to find the most profitable jobs.

Use a dedicated LTL load board.

As an owner operator, being flexible and agile can be the difference between success and failure. Using less than truckload load boards, such as Truckstop, gives carriers accurate, same-day rate data. It also provides rate recommendations specific to load, broker, and lane. A good LTL load board will track rate trends to help you adjust your pricing accordingly, accurately assess supply chain variables and demand for both origin and destinations, and help predict fuel rates and surcharges.

LTL freight shipping combines efficiency with cost-effectiveness, accommodating smaller loads through a pricing structure influenced by factors like freight classification, distance, and required services. For carriers, mastering these pricing factors is key to maximizing profitability in a competitive logistics market.

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Archives, Global Logistics, Global Trade Daily, International Trade

Guide to Freight Shipping Services

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Freight shipping has become an integral part of most companies’ customer service. Americans have become accustomed to having a wide choice of products available at any time and having those products delivered to their address, no matter where they live. Some of the major industries that require freight shipping to send goods to customers and other businesses include e-commerce stores, pharmaceutical companies, medical clinics and hospitals, manufacturing and industrial support, etc. If the process of freight shipping is still new to you and you want to learn more about it, here’s a brief guide to freight shipping services that will help you gain a deeper understanding of how freight shipping works.

First of all, what are freight shipping services?

Freight (often synonymous with cargo) are goods transported in bulk by land, sea or air. Freight shipping services are a part of the process of transporting goods from point A to point B by land, air or sea. Freight services can be customized depending on the type of cargo in question and the shipper’s needs. These goods are usually packed in boxes, crates and containers and transported by different means of transportation. Freight rates are mostly based on the distance, the size of the shipment, and the method of shipping.

Crates and pallets are used for stability, protection, and easy loading when shipping goods by truck, and if the goods are perishable, the truck must be refrigerated. When shipped by sea, goods are usually transported in shipping containers. When shipping goods by air, special air freight pallets are used. There is also additional protection against extreme temperatures, humidity, pressure, and vibrations up to 500 Hz.

Is there a difference between freight and parcel shipping?

Many people confuse freight shipping and parcel delivery. The main difference between the two is weight. Parcels are individual shipments that are much lighter compared to standard freight pallets. They are handled by common US carriers like the USPS, UPS, and FedEx. Shippers can take a parcel to a local drop-off point and have it shipped in a box or envelope. A package that exceeds the maximum parcel weight is classified and shipped as freight. Parcel shipping is usually done via a small truck or van, while larger packages categorized as freight require larger vehicles.

Modes of freight transportation

Shippers can choose between different freight services. Each shipment can be customized to meet the shipper’s specific needs. Factors such as the shipper’s budget, the nature of goods that are being shipped, and the speed of delivery can determine which freight shipping service is the best fit.

Ground freight shipping services

Less Than Truckload (LTL)

Sometimes, a single truck is large enough to fit several loads of shipment. Less Than Truckload is your best option if you don’t need to use the whole truck. Since one load of shipment only occupies a portion of a trailer, more than one customer can be served at a time. LTL shipping has several benefits. It is not only cost-efficient but also eco-friendly, as it helps reduce the carbon footprint on Earth.

Full Truck Load (FTL)

If the goods you are shipping require a whole truck, FTL is a valid option. Full truckload is a convenient choice when a company is shipping enough goods to fill a truck or it needs a dedicated vehicle for a partial load. The standard size of each load ranges between 10,000 and 45,000 lbs. FTLs use dry van, flatbeds, and refrigerated trailers.

Rail shipping

Freight shipping by rail is the most affordable mode of transportation for large and heavy goods. Automobiles, stone, grain, coal, ethanol, and petroleum are some of the goods commonly transported by rail. One of its biggest drawbacks is that the arrival destination is connected to the railway. Additional modes of transportation may be necessary to have your goods delivered which may involve additional costs. Still, if you can cut costs and your customers don’t mind waiting a little longer, rail shipping is the way to go.

Ocean freight shipping services

If we compare airfreight and sea freight, air freight is generally preferred for international shipping, but that doesn’t mean sea freight has no perks. The downside is that ocean freight takes weeks while air freight takes days for the same distance.

There are two types of ocean freight – Share a Container and Full Container.

Share a Container (LCL)

Similar to Less Than Truckload, sharing a container helps you save money by splitting the cost of shipping with another company. You are not paying for a whole container, plus, you can more easily restock and manage seasonal inventory in different shipments.

Full Container (FCL)

If you need to use a whole container, Full container shipping allows just that. You are paying for the entire container, whether you fill it up or not. If you opt for FCL, there is no standby time for filling out the container and there is no risk of damage caused by someone else’s cargo. Therefore, you can expect a quicker and safer delivery.

Air freight shipping services

Air freight is widely used all over the world. This is a safe, quick, and reliable way to ship your products. Smaller shipments belong to a service called express freight. They are handled by one central company (DHL, UPS, or FedEx). The second category is international air freight. This service is used to transport larger goods that require larger planes and one trip can involve multiple companies. If you need to ship products urgently, have in mind that air freight is much faster than the other freight shipping services. Moreover, products transported by air are less likely to suffer any damage. Although more expensive than other modes of transport, air freight is the best choice for high-value and urgent-delivery goods.

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Hillary Jones is a freelance writer born and raised in San Francisco. She currently lives in Los Angeles and writes for losangelestransfer.com. Over the past few years, she has collaborated with several moving and storage companies writing helpful how-to blogs and promoting their services. Her main hobby and second source of income is making handmade jewelry.

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Archives, Global Shippers 101, Global Trade Daily

Benefits of LTL Freight Shipping

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Less than truckload (LTL) shipping is a method of shipping that uses either LTL carriers or parcel carriers. The sticking point of this type of shipping is that it allows for people to put together their smaller loads (less than 150lbs, 68kg) and then ship them together with other people’s packages. This allows shipping companies to make shipments much more economically than with the FTL (full truckload) alternatives. But, besides economical benefits, there are other benefits of LTL freight shipping that you need to be aware of in order to incorporate it with your business. So, let us take a look at why LTL freight shipping is comparable and often preferable to FTL shipping.

Top Benefits of LTL Freight Shipping

The fastest way to ship your packages is to have a shipping company pick them up, load them and directly transport them to your desired location. Unfortunately, this is often the least economical way of doing it. In order to make shipping cheaper and more eco-friendly, shipping companies often have to use alternative ways of shipping. And one of the better ones is LTL. Even though it can be slower than direct FTL shipping, it allows for a much better cost and fuel efficiency. And, with modern technologies and regular use, it can be just as efficient as FTL shipping.

Shipping Cost

One of the largest benefits of LTL freight shipping is the reduced shipping cost. Since this method of shipping is based on smaller loads from various clients, it manages to reduce the overall shipping cost for everyone. This is due to the fact that by using LTL, shipping companies put together multiple smaller loads. By doing so they manage to reduce the fuel and the number of vehicles necessary to transport their loads. If they were to ship client by client, they wouldn’t be able to fill the vehicles to their maximum capacity (hence the less than truckload). But, by lumping up items together, LTL shipping manages to save cost on transport, while allowing the same service as FTL.

Eco-Friendliness

More and more companies are turning towards eco-friendliness as a necessary mode of operation. And, once you take a look at our current rate of climate change and our carbon footprint, you’ll also be hardpressed to look for eco-friendly solutions. Luckily, when it comes to shipping, LTL is one of the greener options. By reducing the amount of fuel and vehicles necessary for shipping, LTL allows shipping companies to be much greener. They are also able to figure out optimal pathways, due to more regular shipping that is common to LTL. So, if you are looking for an easy way to make your shipments greener, simply employ LTL freight shipping.

Increased Safety

The first way that LTL freight shipping increases the safety of your items is with ample packing. Companies like Triple 7 Movers will first make sure that your possessions are properly packed. Then they will repack them each time the total LTL shipment is altered. By reapplying protective covers, they ensure the safety of your possessions from both physical and environmental harm. Individual loads are usually either packed on a parcel and then secured, or the company puts them in protective containers. This allows for maximum safety during shipping as well as easy handling.

Another safety feature of LTL freight shipping is that there is almost no chance of a package getting misplaced. By using tracking technologies, safety measures, and notification requirements, moving companies ensure that any package on board is well looked after. Furthermore, shipping companies usually organize LTL shipping routes with as few stops as possible. This allows them to keep packages safe for the entirety of the trip.

Better Organization

The biggest worry people have about LTL freight shipping is the supposed lack of availability. After all, with an FTL, you have the control of timing and the necessary route. Meanwhile, the LTL shipments are often limited by their route and the necessary drops. So, can better organization really be one of the benefits of LTL freight shipping? Well, as it turns out, it can. LTL freight shipping is ideal for customers who have regular shipments. Shipping companies often group up regular customers together. This allows them to achieve a greater degree of reliability and consistency. Along with regular shipments, companies also use automation to figure out optimal routes.

But, the true beauty of modern LTL freight shipping is that you don’t have to rely on your shipping company’s skills alone. Modern technologies allow clients to track their packages and get live notifications of any delays or setbacks. Therefore, with LTL freight shipping, you should be able to run your business and both send and receive your shipments with a high degree of reliability.

Shipping Options

Most shipping companies offer various shipping options. These options can come at a higher cost, but they can also make your shipping much better organized. Some of them are:

Expedient shipping – You can use this option if you want your goods to arrive faster than standard transit time. This option can often be quite costly, but it is quite useful for emergency shipping.

Liftgate – Does you freight exceeds 100 pounds? Then you should opt for Liftgate. Also, consider using it if the receiving location doesn’t have a clear dock for shipments.

Limited access – You can use this type of LTL for areas that have limited access due to safety reasons. So, for your construction sites or rural locations, you would probably want to choose this kind of shipping.

Custom delivery window – If you need your shipment to arrive within a specific period, you can opt for custom delivery windows. Most companies will deal with your package so that it fits their workload. This allows them to deal with transport cheaply and efficiently. So, this option can also be costly and should, therefore, be used with ample forethought.