In shipping, less than truckload (LTL) freight refers to the transportation of items that don’t require the use of an entire truck. LTL is predominantly used for small freight products or low-order goods. Due to the load being under capacity, several different shipment orders are loaded together. They are typically loaded onto pallets, crates or shipping drums to protect the items from potential damage. LTL shipping facilitates transport between 150 and 15,000 lbs.Four things you need to know about LTL in shipping:
LTL freight refers to Less Than Truckload shipping and is used for shipping small products or low quantities of goods.
Goods from different shipping orders are combined on a single truck, which makes deliveries at multiple locations.
LTL shipping is more cost-effective, eco-friendly and secure than many other shipping methods.
LTL freight pricing depends on the product dimensions, distance traveled and shipping mode and type.
How Do Shipment Companies Successfully Operate LTL Freight?
LTL shipping involves expert logistics management, and several important factors are involved in efficiently executing LTL freight shipments. Many organizations use a transport management system (TMS) to optimize the process. LTL shipping requires organization and precision, meaning technology is used where possible.
Load Consolidation
Successful LTL shipping requires load consolidation, which can be done internally, through logistics software or externally through a freight consolidation company. These companies gather small orders from several shipping firms and combine them to create full truckloads. With a larger volume of freight items, shipment companies can plot more efficient shipment routes. Each truck is sent on a multi-stop route that’s carefully planned to maximize space and fuel use to be eco-friendly and cost-efficient. Shippers must provide accurate information regarding their freight, including dimensions, documentation, packaging and labeling.
Packaging
One of the most critical factors in LTL freight is knowing how to pack a box for shipping.Depending on the contents of the shipment, there are different packaging requirements. Throughout the shipment journey, conditions can change significantly, making some items vulnerable to damage. When arranging cargo into pallets, careful planning must be undertaken to load items tightly inside the truck to reduce movement. Goods also need to be placed in reverse loading order so the first items loaded are the last to be delivered. Custom size cardboard boxes and shrink-wrapping can minimize wasted space inside the truck while providing adequate protection for your goods.
Using LTL shipment means you only pay for the specific share of the truckload your items use. The rest of the truck space is occupied by items from other orders. This makes your costs proportionate to the number of items you’re shipping. Other shipping methods do not facilitate this cost-effective approach. It pays to pack well when using LTL shipping. Being efficient with your packaging can save you even more.
Security
Due to the detailed efforts that go into packaging and arranging LTL shipments, the pallets and storage containers are generally highly secure. While several small units might be vulnerable to damage or mishandling, well-packaged pallets are more likely to remain secure against theft or damage.
Benefits Small Businesses
LTL shipping allows small businesses to take advantage of the variable shipping rates for smaller goods that larger competitors frequently benefit from. This means small business owners can utilize professional services at an affordable price.
Eco-friendly
LTL shipping is efficiency-focused, leading to shipments being more eco-friendly. This approach means fewer trucks are on the road, reducing the number of harmful emissions being released.
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Difficulties Associated with LTL Freight
While LTL freight is a cost-efficient and eco-conscious means of shipping small goods, several challenges can arise that can impact the overall cost of using LTL freight. LTL shipping is a detailed and precise process making time-efficiency challenging. Each shipment carries items from several bookings that have different end destinations. Many variables, such as road conditions, weather and delays at stopping points, can prolong arrival times. Not all carriers offer LTL shipping, meaning it can be difficult to source shippers. Successfully executing LTL shipping requires logistical expertise and high-level management. Due to the attention to detail and organization needed, it can be challenging to independently pull off for a small business. It may be worth consulting a third party logistics (3PL) company to source and negotiate with carriers on your behalf.
In general, the price of shipping is dependent on how far the items need to travel. The longer the journey, the higher the price.
Shipment Dimensions
The weight, length, width and height of your items determine the freight class. The class is considered as part of the pricing structure.
Shipment Mode
Shipments can be sent as standard, expedited or guaranteed. Each of these shipping types has a different cost. Additional services are offered by carriers, such as parcel tracking, add to the cost.
Shipment Type
Certain freight requires special handling. Perishable, hazardous or fragile goods may need careful handling and specialized packaging, including temperature-controlled containers, shipping drums and biohazard pouches, leading to higher shipment costs.
Impact of LTL Shipping on Your Bottom Line
Businesses that use shipment companies at any point should consider LTL freight shipping. Large and small businesses can benefit from the use of LTL shipping due to its cost-effectiveness. It can improve shipping efficiency and help with your bottom line. For further information on reducing your shipping costs using efficient packaging options, call Air Sea Containers at (866) 596-9448.
