2024-10-28 03:05 PM
With any shipping decision, options must be weighed to align with company priorities. What is most important? A critical on-time delivery? Cost-savings? Mitigating market volatility? Perhaps it’s the security of your product. There’s no one-size-fits-all answer; each customer and each shipment is different, and the benefits will differ, too.
In this article, we will provide an overview of the advantages and best practices of LTL, specifically, as a preferred shipping method.
For shipments not large enough to fill the full capacity of a 53’ trailer, many shippers utilize LTL (less than truckload). Unlike traditional truckload, where the trailer is filled with freight from only one shipper, LTL consolidates shipments from multiple shippers into one trailer. Typically, these shipments are 1-6 pallets or less than 12 linear feet each.
LTL follows a hub-and-spoke model; freight is picked up at various customers and taken to a local hub (terminal) where it is off-loaded from its initial trailer and transloaded for the line haul with freight from other customers heading to a similar destination. Once the line haul carrier has reached the destination, the freight is transloaded once more to be sent out on local delivery trailers to each unique customer. Some LTL shipments will move through multiple hubs prior to their final destination terminal and delivery.
Because of transloading, it’s important to consider the handling of the product. If your freight is sturdy and protectively packed, LTL shipments can be just as safe as full-truckload.
LTL shipping is a growing mode of choice because of its many benefits. While these benefits may differ from customer-to-customer and shipment to shipment, having an overarching understanding of each will help in determining how and when to utilize LTL.
One benefit of LTL shipping is that shippers pay only for the area of the truck that freight fills. So, if you only have enough cargo to fill up a fifth of a truck, you pay for approximately a fifth of the space. Other companies rent out (and pay for) the other space for their goods. For shippers that generally do not ship in bulk, LTL can be a consistent option to garner cost-savings as compared to a full truckload rate.
While full-truckload, long-term contract rates can benefit shippers, if the consistency of volume isn’t there, these contracts often force shippers to pay year-round rates for point-in-time costs. LTL helps mitigate that risk. Each shipment is quoted uniquely based on its specs (weight, dims, freight class, etc.) and on the seasonal market.
Additionally, this advantage of LTL shipping creates flexibility (and continued cost savings) as shipment sizes often fluctuate. Shippers aren’t paying for that fifth of the truck when their shipment size is smaller. This drives optionality to continue delivering product regardless of the capacity filled.
Additional service requirements, known as Accessorials, add additional costs in exchange for extra services beyond what is generally expected. These benefits of LTL shipping allow for customization to meet customer needs. Some of the most common accessorial options are:
Partnering with professionals allows shippers to focus on aspects of their business outside of logistics. Working with knowledgeable LTL experts, a logistics solution provider like R&R Express can remove the confusion and complexity from LTL shipping. R&R Express’s carrier access, industry knowledge, and customer-centric approach gives its clients peace-of-mind and the ability to focus on growing their business, rather than building a knowledge of the niche market of LTL.
While the advantages of shipping LTL are many, its nuances are a reason to partner with professionals – especially since the unique needs of each shipment can become daunting and often lead to novice mistakes. These best practices can help ensure smooth sailing for LTL shipments:
Take the struggle out of the supply chain. R&R Express has you covered with its LTL expertise and dozens of carrier options across North America. Get a quote from R&R Express today and see how that expertise can transform your LTL freight operations.
WLX | Western Logistics Express to relocate to new headquarters in Kansas City, creating 76 new jobs
WLX | WLE Ranks on the 2024 Inc. 5000 List of the Fastest-Growing Private Companies in America
WLX | WLE Named 2024 Best Places to Work in Kansas City Honoree by Kansas City Business Journal
The XEL FOUNDATION Autism Inclusion Day at the zoo
This time, as the 12th fastest-growing company in Kansas City.
as the 21st largest logistics company in the greater Kansas City area
Thanks to XEL, Penn State University’s Beaver Stadium is now Sensory Inclusive™ Certified.
Blake is an honoree of Kansas City Business Journal’s 2023 CFO of the Year awards
WLX | WLE Ranked #129 on Kansas City Business Journal’s List “Private Companies in the Kansas City Area”
The R&R Family of Companies has impressively earned the 32nd best freight brokerage firm in North America.
The R&R Family of Companies named #74 on Transport Topics' “Top 100 Logistics Companies” for 2023
The R&R Family of Companies added refrigerated shipping to our broad range of offerings.
We've been ranked #1 out of all midsize companies and received a managers award
We use cookies to improve your experience by using analytics. By using this site you consent to our use of cookies. To learn more, read our privacy policy.