What happens when your products or goods do not quite fill up a complete truck but still need to keep going?
You’re faced with tough choices. Should you…
- Pay for empty space?
- Hold off on the shipment and risk delays.
- Find a smarter way?
A full truckload (FTL) doesn’t justify the costs, and delaying shipment isn’t an option either.
Is there a better way? Do we have a smarter option?
Absolutely.
Less-than-truckload or LTL shipping is the middle ground if you want to save money, ship smarter and keep your supply chain up and running.
How? Keep reading to know how LTL shipping works and how it is changing the supply chain market worldwide.
Understanding LTL Shipping
LTL shipping, short for Less than Truckload shipping, is a delivery method tailored for businesses that do not need an entire truck to transport their goods. How does it work, and what’s in it for you?
What is LTL Shipping?
Ever traveled in a shared taxi or carpooled to the office? LTL shipping is the same but for your goods. Instead of booking and paying for an entire truck, your goods share the same truck with other shippers in the same direction.
Thus, you share the space and also the cost of shipping. Isn’t this a clever, cost-saving shipping solution? It’s ideal for shipments weighing between 150 to 15,000 pounds. (Too big for parcel services, but small for an entire truck.)
How is it Different from Full Truckload (FTL) Shipping?
Here’s a quick difference between the LTL and FTL shipping services.
| Feature | LTL (Less Than Truckload Shipping) | FTL (Full Truckload Shipping) |
| Load Size | 150 to 15,000 pounds | Up to 45,000 pounds |
| Cost | It is shared among multiple shippers | You make the complete payment |
| Flexibility | Good for small and frequent shipments | Best for one-time large loads |
| Time | It may take longer time due to multiple stops | Direct from pickup to your required destination |
| Environmental Impact | Consolidates freight to maximize truck usage. | Typically uses more resources per load. |
LTL is a good choice for you if you have to ship your goods regularly but don’t have a reasonable load to justify FTL.
How does LTL Shipping Work?
It is again similar to booking a shared taxi but on a larger scale. Here’s how the concept of LTL shipping comes to life.
- Multiple shippers book the space on the same truck.
- The carrier picks up shipments from these shippers.
- After pickup, the shipments are combined at a local terminal.
- The shipments are sorted and sent to regional hubs.
- At the hubs, they are loaded onto the trucks headed in the same direction.
- Your goods are delivered to your required destination, reducing the costs.
So, if you want to save and reduce costs, let your goods sit along with electronics from one company and furniture from another. By asking for LTL rate quotes, you can compare carriers and prices before shipping.
LTL Shipping: Benefits and Challenges
Does shipping a smaller load mean wasting resources or complicated logistics? No. LTL shipping is a budget-friendly option with many other benefits. But like any other shipping method, it comes with its set of challenges.
From figuring out LTL rate quotes to potential delays, here is a quick list of the pros and cons of LTL for you.
Benefits
You are sharing the truck space with other shippers, which significantly reduces your shipping expenses. Moreover, it caters to shipments of different sizes and frequencies. If you experience seasonal demands or fluctuating shipments, it is a great option for a smooth supply chain.
- Cost-effective
- Flexible
- Environment friendly
- Reduced risk of wear, damage, and loss
- Easy tracking
- Safety of your goods
In addition to cost and flexibility, LTL shipping contributes to a greener supply chain. The number of vehicles reduces on the road, leading to lower fuel consumption and decreased carbon emissions.
Challenges
The risk of delays increases with increasing stops. The shipment goes through multiple stops and handling at different hubs. Continuous unloading and reloading of freight leads to longer transit times.
- Potential Delays
- Complex pricing
- Security Considerations
- Less Predictability
- Risk of damage and loss
It becomes difficult for shippers to estimate LTL rate quotes. The complexity of shipment weight, dimensions, distance, and freight classification influences the pricing. Security is also a concern as your goods are prone to theft, complete loss, or damage of goods during loading and unloading.
Quick Tips to Minimize Delays and Manage Pricing
- Choose carriers with efficient distribution networks
- Use tracking systems to track your shipments
- Plan for extended transit time when scheduling your deliveries
- Familiarize yourself with different freight systems
- Request for detailed quotes from multiple carriers
- Negotiate your contracts based on your shipment volume and frequency
If you are still wondering if LTL shipments are right for your business, below are a few questions that can help you make the right decision.
People Also Ask
What Does LTL Shipping Mean?
LTL shipping is a method of freight transportation that combines multiple shipments from multiple customers in one truck.
How is LTL Freight Cost Calculated?
Less than truckload shipping rates estimate can range from $50 to $5,000. It depends on various factors, including:
- The type of freight you are shipping,
- The dimensions and weight,
- The distance the freight will travel, and
- The type of LTL services you require.
To see how much it might cost to ship your LTL freight, see our LTL freight cost calculator.
What are the Ideal Practices for Packaging LTL Shipments?
If you want to avoid delays or missed pickups, proper preparation is essential. Here are some tips.
- Pack efficiently
- Secure your cargo
- Label clearly
- Follow the guidelines given by the carrier
- Accurately weigh and measure your freight
Proper preparation guarantees safe, timely delivery and avoids costly mistakes.
Which Industries Benefit Most from LTL Shipping?
LTL service is cost-effective and offers flexible size options; thus it benefits industries such as:
- Retail
- Manufacturing
- Healthcare and more
How Do I Choose the Right LTL Carrier?
Based on the network coverage, transit time, pricing and customer service, evaluate the carrier you choose before taking the final call.
Tips for Optimizing LTL Shipping
Shipping your goods does not have to be a complicated process. With a few smart and strategic steps you can make your shipping process faster, safer, and budget-friendly. Let’s have a look at a few quick tips to make the most of your shipping process.
Pack Smart and Label Correctly
The right packaging makes all the difference. Use sturdy materials to keep your items secure. A pallet keeps everything stable, but remember to place heavy items at the bottom. Clearly label your goods with the correct address and handling instructions.
Secure Your Cargo
Use straps and shrink wrap to secure and hold your items in place during transit.
Select the Right Carrier
Choose the right carrier with a strong network and proven reliability. Compare prices and check if they offer competitive rates with transparent pricing.
Do they offer real-time tracking? Also, follow the carrier’s guidelines for specific packing requirements to prevent damages and issues.
Provide Accurate Measurements
Measure and weigh your shipments accurately to avoid mishandling of products.
Use Technology
Leverage technology to make your shipment smarter. Many carriers provide freight management systems that you can use on your phones to track your shipments in real-time.
Interlinking Opportunities
Many of you might be facing the challenge of balancing costs and efficiency when it comes to logistics. It’s natural to struggle when it comes to choosing the right shipping options. After all, your products are what run your business.
However, making smart decisions and picking the right career, like uShip, helps you make confident decisions.
You’re Ready to Ship Your LTL Freight…
A little planning, the right resources, and the correct carrier go a long way when it comes to shipping LTL freight.
Ready to avoid stress and keep your costs low?
Let us make your shipping as simple as ABC. Partner with us and get personalized quotes today.
Happy space sharing and cost savings!!
