Items you use every day had to come from somewhere and there are several different ways it could have been transported to end up in your possession. On a daily basis products are moving constantly across the US and across the world to reach their destinations. These products are mainly transported through trucks, trains, ships, or airplanes, sometimes multiple of these in the whole process. Trucks are one of the more popular modes of transportation companies and people use, but sometimes a whole truck is not needed, but is considered too big to be parcel. This is where LTL shipping comes in, also known as “Less-Than-Truckload.”
What is LTL Shipping?
LTL is considered to be the opposite of FTL, full truckload, which is a shipment that takes up either most of or the whole truck. When the full truck is not needed, customers can choose the LTL option and save money by only reserving a certain amount of a 48 to 53 foot trailer. The rest of the space is shared with other cargo from different customers of the carrier.
For a company that has freight over 150 pounds and under 15,000 pounds and does not need a full truck, this would be a great service to use. Shipments are typically shipped using wrapped pallets, wood crates, or corrugated containers.
Things that factor into LTL rates
Before your shipment can be picked up and shipped to its destination, your carrier or 3PL coordinator will send you a quote. The quote you receive will be a total of the different factors below.
Distance
The longer the distance the higher the price will be.
Additional Services and Specialties
Sometimes shipments require special trucks, services, or equipment depending on the cargo. For example, if a liftgate, residential pickup or delivery is needed, or your freight is perishable, the rate can fluctuate depending which carrier is used.
Freight Class
The weight and dimensions of your shipment will primarily be used to determine the freight class. The freight class is essential information as it has a major influence on the overall LTL rate you receive.
How does LTL shipping work?
Assess and Pack
Take note of your shipment and account for all items you are planning to ship and the value of it all for insurance purposes. The items should also be listed on your bill of lading (BOL).
Put your shipment together and pack from the inside to the outside on a pallet. Pack tightly and use quality materials to ensure a durable and stable shipment to prevent damage during the transportation process. Freight that is packaged correctly and securely lowers the chance of any damage happening during transportation.
Prepare your shipment
Make sure to calculate the weight, dimensions, and density of your package, including the packaging and pallet, to come up with the freight class. Your 3PL provider can also help assist with this process if you give them the correct weight and dimensions.
Provide the origin and destination addresses and declare any special requirements for your shipment such as a liftgate or residential pickup or delivery.
Shipped Out to Destination
Once your freight is picked up by your chosen carrier, the carrier’s truck will also collect other customers’ shipments from around the area. Once the truck completes the pickups it will head to a terminal where the freight will be unloaded and each one will be processed. Shipments with destinations in a similar region will be assembled and loading into another truck that will transported to a delivery terminal based in that area. Once they are sorted at the terminal, they will be sent out for delivery.
Advantages of LTL Freight
Cost and Time Effective
Because you are not using a whole truck you do not have to pay for the unused space, which is perfect for cargo too big to be parcel and too small for a full truckload. With LTL shipping you can ship faster, in smaller quantities, and more often. This eliminates the need to stockpile or wait on a number of customer purchases in order to make a full truckload worth it. This also reduces warehousing costs, creating faster turnaround times for your customers and an opportunity for more sales.
Eco-friendly
There is an environmental gain when companies choose to use LTL versus FTL. Shippers sharing the space of one truck means less trucks on the road, which mean less pollution in the air.
Professional expertise and experience
When shipping LTL there are many companies that can assist and are experts on the market and the industry. For all the companies out there that do not have the resources to employ an in house shipper, there are 3PL providers and coordinators that can help regarding LTL shipping.
Support and Security
Customers who choose to ship LTL are going to experience a good sense of support and security during the whole process. LTL carriers and 3PL providers care about getting your freight from point A to point B successfully.
Logistics coordinators, carriers, and drivers will take note of special handling needs for all shipments and ensure it is delivered safely to the receiver. They will also offer all information needed for insurance claims or replacement products if an issue were to occur.
LTL shipments are also easily trackable, and updates are made all throughout the transportation process. They can be tracked by the PRO number, PO number, shipment reference number, and pick-up date range.
Services
Not every shipment warrants the same process, pickup, or delivery. A great thing about LTL is it offers additional services and specialties for those situations. If your freight needs any of these options, most carriers will offer them at reasonable costs for expedited, fragile or hazardous products, liftgate, limited access options, and more!
- Expedited shipping
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- Sometimes freight needs to be somewhere quicker than the normal LTL shipping times. Expediting your freight is a good option for your cargo that is time sensitive.
- Liftgate access
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- A shipper can request a liftgate if the origin or destination does not have dock access, and the freight is over 100 pounds, to move the shipment on and off the truck.
- Limited Access
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- If the shipper or the receiver are in a limited access location will have to take extra time or effort to pick up or deliver, limited access option is a requirement.
- This includes areas that are difficult to get to, strict security, construction sites, schools, and many more.
- Inside Pickup and Delivery
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- LTL is typically shipped from dock to dock, however sometimes a dock is not available. A shipper can request inside pickup and delivery to have the freight picked up or delivered from or to the inside of the building.
- It is important to know that when it comes to residences inside delivery involves getting the cargo to the driveway, porch, or garage, but will not go inside the house.
- Do not expect drivers to unpack or disassemble freight to fit it through doors, they will not bring it inside.
Challenges
With most things challenges come right along with advantages, that includes LTL shipping. In the past year and a half an increase in consumer buying has caused an increase for a demand of LTL trucks. Recently, it has been hard with driver shortages, lack of capacity, smaller delivery windows. Many customers are having trouble finding LTL trucks to haul their freight in the time frame they want. Some companies are having to resort to expedited in order to get freight delivered in a decent amount of time. In order to prevent any unwanted or unexpected fees you must do research to stay on top of the market or find an expert to help you. Check with your carrier or logistics coordinator if you are unsure how to navigate the current LTL marketplace.
ATS Logistics is committed to helping our old, new, and current customers successfully get the LTL shipments delivered to the destination. Reach out to us and check with our experiences coordinators if you have any questions, concerns, or need your LTL freight moved!