In this blog, we’ll define LTL shipping, describe the typical LTL carrier experience, and assist you in determining which option best suits your requirements.
LTL freight is the term for products or goods that are transported but do not require a full truckload. Usually, several different shipments are carried on one truck as a result of these smaller freight loads. The weight of LTL shipments, which can range from 150 pounds to 10,000 pounds, is typically distributed among pallets.
LTL carriers specialize in making the most of their loads to efficiently move more cargo for more shippers. The flexibility, cost-effectiveness, and environmental friendliness of LTL shipping make it popular with shippers. LTL trucking, however, can be a complicated business.
What is LTL Trucking?
LTL shipping is the transportation of fairly small freight that, on its own, doesn’t fill a full truckload. LTL carriers typically combine cargo from several different customers into one trailer to fill it to its capacity. Cargo from each customer typically weighs between 150 and 15,000 pounds.
If you don’t have enough cargo to fill a full truckload, LTL shipping is a great choice. Don’t forget that shipping a smaller volume will cost you more than filling an entire truck would cost you for the same volume.
This is due to the carrier’s increased workload in locating freight from additional shippers to help fill their trucks. If you “do the work for them” by buying a full truckload, you’ll get a better deal.
How Does LTL Freight Work?
LTL freight shipments, which are very effective, essentially combine partial loads to create full multi-stop truckloads. Space used, the type of goods being shipped, and the pick-up and delivery locations all affect how much shipping costs are.
LTL freight can be delivered regularly, urgently, or with assurance. Additionally, special services may be added to LTL freight shipping. Lift gate pickup/delivery, inside pickup/delivery, residential pickup/delivery, and reweighing/reclassification are a few of these services. Accessorial fees are needed for these services as extra costs.
How Much Does It Cost to Work With LTL Carriers?
If you’re shipping with LTL, you’re probably looking for the best deal; LTL carriers are aware of this. To pass the savings on to you, they make every effort to reduce expenses along the way.
The National Motor Freight Classification (NMFC), which establishes a typical grouping or grading system akin to what other industries have, is what determines the price of LTL shipping.
The system employs 18 classes, ranging from class 50 on the low end to class 500 on the high end. The four factors considered include:
- Density
- Handling
- Stowability
- Liability
When combined, these characteristics establish the commodity’s “transportability.”
As you might anticipate, shipping costs increase as the NMFC number rises. Don’t feel like you need to take on the burden of figuring out your freight’s NMFC on your own. A system that enables precise classification based on the data you give your transportation provider should be available to them (more on this later).
Benefits of LTL Freight
Cost Savings
LTL freight is made up of numerous smaller shipments that together make up a full truckload. You only pay for the space you use because your shipment only takes up a portion of the truck’s available space. This guarantees that your costs will be significantly lower than those of a typical full truckload shipment.
Perfect for Ecommerce
Businesses must make sure their shipping strategies meet the needs of their customers in a world where e-commerce is the norm. By avoiding the requirement that each shipment fill a full truckload, LTL shipping increases efficiency and delivery times. Using LTL shipping ensures that your inventory or freight arrives exactly when and where it should be.
Small Business Friendly
LTL shipping and trucking are very advantageous for small businesses. Typically, compared to large corporations, small businesses ship fewer goods and spend less on freight. LTL shipping enables small businesses to take advantage of the services offered by professional shipping without having to fork over a lot of money for extra space.
Environmentally Conscious
The LTL shipping process results in fewer trucks carrying full loads, rather than more trucks carrying less than their capacity. The fewer trucks required to transport goods also means fewer emissions and a smaller carbon footprint for your business.
Challenges of LTL Freight
Time
In exchange for flexibility and cost savings, LTL freight may sacrifice expedience. Freight often takes longer to arrive because each truck carries shipments from multiple businesses heading to numerous nearby locations. Plan more time than you would for a typical truckload shipment when using LTL freight as your shipping method.
Carrier Capacity
Not all carriers offer LTL trucking or shipping, in contrast to full truckload shipping. It can be difficult to find a carrier that will ship LTL for the best price. To get past this obstacle, plan enough time to look for a carrier, or use a free tool for getting quotes to find carriers that meet your service and price requirements.
Shipment Details
Pay attention to the details when shipping LTL. Class of freight, weight, locations of pickup and delivery, deadline, etc.—all these factors affect the price your organization pays for When planning the logistics of your LTL shipments, pay close attention to every detail in order to obtain the best price and level of service.
Common Problems With LTL Shipping
LTL shipping does experience a few typical issues, as is the case with many things. You might run into a few of these issues when transporting LTL freight.
Misunderstood Shipping Windows
You’re probably used to seeing 3 to 5 day shipping or something similar when you purchase products online. This means that once the product ships, you can anticipate receiving it as soon as three days, but possibly up to five days, depending on any problems encountered.
Amazon Prime is an additional option. When ordering through Prime, have you ever experienced a delivery delay of more than two days? That can occur when using LTL shipping if your carrier or broker doesn’t communicate clearly up front.
Carriers frequently claim to offer three-day shipping when, in fact, they only offer three to five days of shipping in order to win the bid. If you’re set up to receive your inventories before it shows up, that could be a big deal for your company.
The weather, road construction, and many other factors can all affect transit time.
Incorrect NMFC Codes
The NMFC code is essential to LTL shipping, as was already mentioned. The price you pay to ship your LTL freight is essentially solely determined by that number. So it’s crucial to find out the price up front so you know what to budget for.
Some LTL carriers may quote you at the lower class to win the bid and then shock you with a higher price once they see the freight in person if you give them a range of classes it might fit into. You might have to pay an extra $200–$300 to move up a couple of classes.
Best Practices of LTL Freight Shipping
Make sure your business pays attention to the following elements in order to ship LTL freight successfully.
Use a Transportation Management System (TMS)
A transportation management system (TMS) offers business intelligence, visibility, shipment optimization, and talent for the global supply chain. These systems boost productivity, cut costs, and give your global supply chain a competitive edge.
Every LTL trucking load ought to be subject to a TMS’s examination to determine whether it can be combined with other loads on nearby routes. Using this data, it then constructs full truckloads of freight with multiple stops.
A TMS’s expertise enables your business to select an LTL carrier, get accurate rates, properly optimize goods and routes, and get answers to any questions you might have along the way.
Leverage Consolidators
Unless you have a sizeable LTL volume, no matter how good your software is, you cannot consolidate freight. Fortunately, with the aid of freight consolidators, even small volumes can ship via LTL.
LTL freight consolidation firms combine partial loads from numerous shippers in their centers of consolidation to produce full truckloads. Consolidating LTL results in increased efficiency and cost savings.
For shippers to receive dependable, on-time, nationwide delivery for their partial shipments, individual LTL orders from various shippers are combined into one full truckload. The consolidation center frequently receives freight that leaves within 24 hours. Despite the fact that these warehouses are busy, freight is usually handled less frequently than a typical LTL load, reducing the risk of damage and claims.
Provide Accurate Information About Your Shipments
To handle improperly packaged or reported freight, carriers must invest additional time, resources, and money. By accurately reporting details about your shipments (weight, freight class, etc.), you can keep your connections with carriers strong.) and packaging them properly based on that freight’s properties. This fosters a good relationship with your LTL carriers and saves carriers money and time.
How to Successfully Optimize Your LTL Freight
Almost every shipper must figure out the best logistics route for cargo that requires more than six pallets but not a full truckload. The unused space in a full truckload service makes it potentially less environmentally friendly if you don’t have a full load to ship. This is when freight consolidators can add value and efficiency to the supply chain.
The cost and emissions of shipping can be reduced through freight consolidation. Consolidate shipments using LTL into full truckload shipments to benefit from transportation networks and freight volumes.
How Can You Avoid Surprises When Shipping LTL Freight?
If you’ve recently read any of our articles, we hope this message is sinking in: communicate!
If you give as much information as possible about your freight to your transportation provider, you should get an accurate quote upfront. Include images if you can to take it a step further.
By doing so, the carrier is able to accurately input the necessary data into their NMFC system, locate the appropriate class, and be fully informed before arriving for pickup. Your quotation won’t be altered later in this manner.
The delivery window should also be made clear. Make sure the carrier is aware of the urgency with which your freight must arrive in three days.
Find a transportation partner you can rely on, and keep the lines of communication open with them. You won’t be taken aback when your freight—or the final bill—arrives because you’ll both be aware of each other’s expectations.
Is LTL Shipping Right for You?
LTL shipping is most likely your best option if you don’t frequently ship large quantities of palletized freight at once. It probably makes even more sense if you’re in a busy freight lane because you won’t have to pay extra to have trucks stop by your facilities.
Try to be as clear in your communication as you can right away to prevent any unexpected costs. In order to avoid any problems along the way, if you find a reliable LTL carrier, let them figure out the NMFC.
Finally, don’t be afraid to ask questions. Be sure to leave your conversation with the LTL carrier knowing exactly how much you can expect to pay and when you can expect your LTL freight to be delivered.
Final Thoughts on LTL Shipping and Trucking
LTL freight shipping should be considered by your company as a viable logistics choice. Depending on your organization and your most common shipment types, LTL freight can be extremely efficient and cost effective. Keep abreast of how the LTL industry functions and how it can help you if you want to make the most of your LTL shipments. The next steps you can take to maximize the use of LTL freight can be determined by having this information available.
FAQs
What Are LTL Shipping Rates?
Depending on a number of variables, such as the kind of freight you’re shipping, its dimensions, the distance it will travel, and the kind of LTL services you need, the price to ship LTL freight can range from $50 to $5,000+.
What is FTL LTL Meaning?
The acronyms for truckload shipping and less-than-truckload shipping can be confusing, making it difficult to know which is best for your individual requirements. Both full truckload (FTL or TL) and less-than-truckload (LTL) alternatives have a place in the freight shipping sector.
How to Track LTL Shipments
Your in-transit shipments are shown on a shipment dashboard that you can access after logging into LTL.xpo.com. To view more details, including the status and specifics of a shipment, click any row.
Click the Tools menu at the top of the home page and choose Shipment Notifications to configure shipment notifications. From this point, you can create notifications for just one PRO or for every shipment at a given location.
