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

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

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.

EPA

Old Dominion Confirmed for the 2020 EPA SmartWay Excellence Award

Old Dominion takes leading sustainability efforts in the trucking industry to a new level. Thanks to its role within the SmartWay Transport Partnership, the LTL carrier has contributed to the savings of 279.7 million oil barrels, $37.5 billion in fuel costs, and 134 million tons of air pollutants, according to information released. These successes in addition to consistent efforts in sustainable operations have earned Old Dominion the EPA SmartWay Excellence Award award for the sixth year in a row.

“Sustainability is a critical component of Old Dominion’s operational strategy. We’re committed to being a good corporate citizen and our partnership with the SmartWay Transportation program helps us move towards being a more sustainable carrier,” said Greg Gantt, president and CEO, Old Dominion Freight Line.

The award and 11-year partnership with SmartWay support Old Dominion’s position as a leader in sustainable operations within the freight supply chain arena. Old Dominion represents one of roughly 3,670 companies in partnership with SmartWay. SmartWay partners range from freight shippers to manufacturers, cargo owners, retailers, and more.

Sam Faucette, Old Dominion’s vice president of safety and compliance, received the award on behalf of the company on November 5th during the EPA SmartWay Excellence virtual conference.

“We will continue to look for ways to improve our sustainability practices and ultimately reduce our carbon footprint. We are humbled by this recognition and thrilled to receive this award for the sixth consecutive year,” Gantt concluded.

Old Dominion

Old Dominion Meets Growing Demand with Facility Expansions

As capacity and customer demands continue to grow, leading LTL carrier Old Dominion Freight Line (OD) prepares to meet these industry needs by expanding its facilities across the country from Texas and Ohio to Idaho and Arkansas while adding more facilities to growing markets. The announces expansions include innovative technology allowing for increased shipping paces and seamless shipment transfers while reducing shipping time and adding more room for capacity and flexibility options.

“As our customers adjust to growing e-commerce demands, they rely on us to not only accommodate the additional shipments but to also help them keep their promises to their customers with fast, on-time delivery with no product damage,” said Terry Hutchins, Vice President of Real Estate. “We are excited about these new and renovated service center openings. OD will continue to invest in new capacity to welcome the growing demand and exceed our customers’ expectations.”

Among the regions now boasting renovated and improved facilities in El Paso and Lubbock, TX, Columbus, OH, and Chicago. The facility expansions and additions ultimately strengthen the LTL carrier’s market presence while maintaining customer satisfaction through upgrades and more bodies for support.

In addition to facility expansions, remodeling, and employee additions, OD will celebrate the opening of new facilities recently opened in Oregon, Idaho, Arkansas, and Georgia throughout the month of October.

Our long term strategic plan includes continual investment in our network to improve efficiencies and increase capacity so when our customers grow, we can serve them. The end goal of helping our customers keep their promises is solidified by our continued investment in new technology and service center expansion,” said Hutchins.

TQL

TQL TO CREATE NEARLY 600 NEW JOBS, MAKE $20 MILLION INVESTMENT IN OHIO

Total Quality Logistics (TQL) is constructing a second building at its headquarters to accommodate its continued growth in the third-party logistics industry, according to the Cincinnati, Ohio-based 3PL

The second-largest freight brokerage company in North America, TQL offers full truckload, less-than-truckload and intermodal logistics services. The goal of the expansion is to accommodate nearly 600 new employees that the company anticipates hiring, primarily in sales and information technology roles, over the next five years.

“We continue to grow our market share with new and existing customers, and that’s a direct testament to our incredible team members who are focused on providing premium service to our customers and carriers day in and day out,” says TQL President Kerry Byrne.

“Logistics is an increasingly tech-driven industry, and we continue to make substantial investments in our proprietary technology solutions, such as TQL TRAX, to improve transparency, communication, and drive greater efficiencies in transportation,” Byrne adds. “This headquarters expansion will cater to the needs of technology professionals so we can attract and retain the highest levels of technology talent.”

The expansion of TQL’s headquarters campus on Ivy Pointe Boulevard in Union Township includes the construction of a second building ranging in size from 120,000 to 130,000 square feet next door to the company’s existing 100,000 square foot building. The company anticipates construction costs of the new building at $20 million, plus an additional investment to renovate its current site.

The complex will hold more than 2,000 employees when construction is complete. 

Descartes

Shipping Support Consolidated with Descartes ShipRush™

Descartes’ cloud-based ecommerce shipping solution ShipRush™ now provides customers increased visibility through its added less-than-truckload (LTL) freight management options.

The global logistics solutions provider announced the adding of LTL freight to the offering, further increasing efforts in streamlining shipping operations while supporting companies as they determine carriers and efficient service options.

“Descartes continues to drive ecommerce shipping innovation by bringing together LTL freight, parcel shipping and rate shopping on a cost-effective platform for ecommerce companies,” said Troy Graham, Senior Vice President, Business Development for Descartes Systems Group.

“These combined capabilities help companies, like ZUP, remove the guesswork from choosing the best combination of cost and service for their shipments.”

“As a multi-channel business, ZUP’s shipping needs are complex. We process both individual marketplace orders and large palletized orders for our network of dealers,” said Nick Kierpiec, director of operations for ZUP.

Beyond increased visibility with its all-in-one capabilites, ShipRush™  supports customers in determining the most cost-effective options for LTL management and usage. The platform assists in how and when to use LTL and can produce bulk shipping savings up to 50 percent while offering access to integrated Enterprise Resource Planning systems (ERP) and carrier rate selection processing.

“The ability to do everything in one platform, including process incoming orders and rate shop the best price and delivery options for parcel and LTL, saves us both time and money,” concluded Kierpiec.