Imagine receiving an order to ship 2,000 boxes of fasteners. Your first thought may be to start looking for a full truckload carrier to move the shipment immediately. After giving it some thought, you realize the shipment, which is only going to take up a total of four pallets, is better suited for a smaller space in the trailer. You need something less than a truckload but larger than trying to send 2,000 small packages. You need less-than-truckload (LTL). LTL shipping is used for transporting freight that does not require an entire truck. LTL is made possible by carriers that combine shipments from multiple shippers, making it affordable for those who don’t need full truckload (FTL) shipping while still making the shipments worthwhile to the drivers.
On average, LTL shipments weigh 125 to 15,000 pounds. You could have one or several pallets as part of an LTL load, and the carrier requirements for LTL shipping may vary. For instance, the carrier may only have space for stackable loads. You can also have an LTL load that’s not going to be shipped on a standard pallet, such as a grouping of rolled rugs that are 8 feet long but only take up 9 inches of vertical space when laid down. One carrier may have a higher DIM factor, while a smaller LTL carrier may offer a better, lower DIM factor, which is what you divide your dimensions by to get a dimensional weight. It’s all very subjective.
If you need help sorting through available LTL providers to get the best deal, enter supply chain partners. A quality logistics partner will have access to a pool of carefully selected carrier partners and can provide high-level and cost-effective solutions.
Now, consider the overall state of the LTL market. Market fluctuations and economic uncertainty can also make it challenging to find the best carrier solution to ship your product. Factors such as carrier capacity change due to companies like Yellow Corp declaring bankruptcy to the steady growth outlook wield a substantial influence on the availability of different shipping modes. Yet, the market is expanding. Research and Markets reports, ” The United States Less than Truckload Road Freight Transport Market size is estimated at USD 105 billion in 2024, and is expected to reach USD 125.81 billion by 2029, growing at a CAGR of 3.68% during the forecast period (2024-2029).”
With the demand for LTL rising and macroeconomic forces at play, it is important to keep LTL costs low and have a plan for every possibility. Here are the best steps in achieving an optimum shipping strategy.
Consider consolidating shipments
Studying the frequency of shipped items or repeated pick-up and delivery locations can help companies consolidate shipments for LTL. Of course, this works best when paired with a careful understanding of your network and distribution, something which you get as part of a center of gravity (COG) analysis. Multiple trips to the same location can be avoided if you have the time and resources to add a bit of planning to the process. Grouping items based on similar product types, destinations, and delivery times, can save fuel costs and time. Such a step also makes it easier to leverage LTL by combining multiple smaller shipments, something that would barely warrant a pallet, much less a full truckload, into a larger shipment worthy of pick-up. Then, you have more to fit within the LTL capacity, and you get more value.
Use a TMS
Companies that are slow to adopt technology are likely to experience challenges in managing LTL. A state-of-the-art transportation management system (TMS) can help you plan, analyze, and execute LTL freight more effectively. Using comprehensive and integrated data analytics tools with a TMS can help your team not only tender the load but also track the shipment after pick-up in real-time. Optimize processes to lower costs
LTL freight is typically rated and classified based on its broad commodity grouping, size, weight, dimensions, and distance to travel. Shippers with specialized needs, such as liftgate required, controlled yard access, or forklift needed, will be subject to additional accessorial charges by carriers. Further, hazardous material handling and transportation surcharges may add to the total cost of the shipment.
Partnering with an industry expert with high-quality and long-term LTL carrier relationships can bring down the cost considerably. For example, connections via an application programming interface (API) can help you map the shipment’s delivery, using that information within your freight audit and payment system. As a result, you get to better understand the performance of your transportation network and perhaps see missed opportunities for optimization, which will result in reduced charges from your LTL loads.
Know the best time to ship
Tendering a load sounds simple enough, but have you considered how outside factors could influence a carrier's ease of pickup and delivery?
Consider this. Knowing when traffic congestion is lower, such as on Thursday afternoons versus Monday mornings, can help you optimize your use of LTL. This same information can also be applied to streamline your dock schedule and help your team stay safe.
For instance, Mondays are historically busier than weekends for warehouses. More work on the dock, i.e., more activity, increases the risk of an accident. People may take the wrong step or get overwhelmed. Plus, many people returning to work on Monday may be in a rush. That is an accident waiting to happen.
Now, if you had more efficient shipping options at your disposal, you might be able to avoid scheduling deliveries and pick-ups on a Monday. In turn, you can better consolidate your loads across multiple locations and avoid issues- keeping costs in check.
Another effective way to boost the advantage of LTL is to rethink the days you need to ship loads between facilities and their respective inbound versus outbound appointment schedules. If you can avoid unnecessary trips for a carrier, you’ll see a reduction in costs.
The carrier will already be looking for other nearby shippers with LTL loads to move, so it’s vital that you provide thorough and accurate details of the shipment, including its weight, dimensions, class, and description. After all, you wouldn’t want food-grade packaging in the same shipment with toxic chemicals.
Plan, but leave room for the unexpected
Things happen, and even with the most advanced planning processes on the planet, your LTL loads could be delayed. People may encounter other problems in the day-to-day, like a jammed door that’s taking attention and means you forgot about entering the load into your TMS. Planning gives you more time to package, choose the packing and packaging materials, and decide how you want the shipment loaded. When and if something goes awry, you can intervene-managing by exception rather than always trying to manage each detail.
Working with an expert team lessens this burden. They’re planning for all the likely scenarios, and even a few unexpected ones, to get your LTL load on the road no matter what.
Enhance your LTL shipping strategy with IL2000
LTL shipping is a major strategy for lowering costs and improving transportation efficiency. With the right partnership, your strategy can transform your logistics into a true profit center for your enterprise. Start by knowing the basics of what makes LTL different from other modes and grow your business by putting LTL to work for you.
Connect with IL2000 and let us help you get on the road to success!