Businesses with relatively small freight transportation requirements have a big choice to make when considering their logistics. They could wait until they have enough inventory to fill a truck, but that can lead to all sorts of consequences, ranging from lost sales if inventory runs out to substandard shipping times that can damage their reputation. However, less than truckload shipping offers another option, affording business owners flexibility and cost-effectiveness when working with smaller shipments.
LTL shipping involves shipping less than a full truckload of freight and sharing that truck space with other shipments. Because each shipper pays their part proportionate to the size of the load, it's an ideal way to save money on transportation costs when you don't need a full truckload.
Despite appealing primarily to smaller shippers, such as small businesses, LTL can help companies of all sizes streamline their transportation. Learning about the best shipping options and understanding when to opt for LTL over FTL shipping can help optimize your logistics and save costs.
Less than truckload shipping means your shipment doesn't completely fill a freight truck, allowing multiple shippers to share space on a single truck. By combining partial loads onto one truck and opting for a multi-stop delivery route, LTL providers offer a way to ship items that reduces the overall cost while accommodating a range of shipment sizes. Shipping costs typically factor in the space used, the types of items being shipped and pickup and destination locations.
Typically, LTL shipments weigh between 150 and 15,000 pounds, making them inefficient for parcel shipping but too small to warrant the cost of a truck. LTL shipping provides a workaround to this problem, accommodating smaller batches more frequently.
Instead of waiting for enough inventory to build up to justify the cost of a truck, many businesses turn to LTL shipping to reduce the risk of lost sales caused by a lack of inventory. National parcel services and third-party logistics providers offer these services, letting businesses benefit from the economy of scale. By shipping several businesses' goods together in a truck, all parties share the cost of transportation, resulting in reduced costs for all compared to shipping a full truckload.
Both LTL and FTL shipping have their places in the supply chain. LTL shipments involve packing multiple shipments into one truck, resulting in numerous stops. An FTL shipment isn't typically shared. Deciding whether you want truckload vs. truckload shipping depends on several factors, including:
LTL shipping can be useful in some cases, especially for small businesses and e-commerce. Small businesses can benefit from smaller shipment requirements and reduced transportation costs while gaining access to professional shipping services. You don't need to worry about paying higher costs for unused space with an FTL shipment.
LTL freight also benefits e-commerce. For example, LTL freight shipping reduces delivery times by eliminating the need to wait until an entire shipment is ready to go. LTL freight shipping allows for inventory to be moved in smaller batches, meaning it gets to the consumer quicker than if the business had to wait until it had enough to fill a truck.
However, when comparing the time taken to get from the initial shipping point to the final destination, FTL is still quicker, as it's typically a direct route. Investing in FTL may be worth the cost for shipments that require rapid delivery, even if you don't maximize the usable space.
Every LTL shipment looks slightly different, depending on the origin point, destination, weight, special handling requirements and more. However, they generally follow the same process.
The first step is to package and prepare your freight for shipment. This is particularly important because your overall cost depends on the weight and the dimensions of your freight.
It's also crucial to invest in secure packaging to protect fragile objects from bumping or tumbling on the road. Because LTL shipping often involves goods loaded and unloaded several times across their journey, your freight should be sufficiently secured in advance. Crates and pallets can help keep goods together and more secure.
Once you know how much freight has to be moved, it's time to book a shipment. Get a quote based on your needs from an LTL provider. Pricing for LTL shipping depends on size, the distance the freight must travel and seasonal availability. During peak shipping season, there's more need for shipments, leading to fewer available trucks to provide LTL services. For the most accurate pricing, be sure you have the following information on hand before requesting your quote:
Because prices, services and availability within a given time frame can vary, you may want to consider quotes from multiple providers before deciding. Once you've found one that works for you, follow the LTL provider's process to book a shipment.
A truck arrives on the scheduled date to pick up your freight. Keep in mind that truck drivers' working hours are highly regulated, resulting in many LTL providers charging hourly detention fees to ensure they're compensated for their time. Typically, stops longer than 2 hours result in these charges. This shouldn't be a problem for most LTL shipments, as they tend to be smaller, but it's something to be aware of.
Once the truck hits the road, you should be able to track your freight as it makes its way to the final delivery destination. Transparency and visibility during transport are critical, as they ensure you always know where your freight is.
During delivery, your shipment may make several stops along the way as other freight is dropped off. Typically, shipments are collected from multiple customers and taken to a central hub for further sorting and consolidation to ensure the most efficient delivery routes possible. They then go through the distribution network.
Eventually, your freight arrives. At this stage, ensure the consignee carefully inspects the shipment and notes any damage incurred on the bill of lading. The bill of lading is a legally binding document that records all key aspects of a freight's transit, including special instructions, signatures when freight exchanges hands and the condition of the freight when it's delivered.
LTL shipping provides versatile transportation solutions to businesses of all sizes. Whether you operate a small e-commerce startup or a massive manufacturing facility, several benefits can make LTL shipping a compelling option, including:
There's no need to invest in FTL when you only have half a truck's worth of freight to transport. Leveraging the benefits of LTL shipping can help optimize your business' transportation logistics, ensuring your inventory moves as it should through the supply chain. Whether you're shipping large amounts of manufactured goods to warehouses or organizing delivery to retailers, knowing when to opt for LTL can save time and money.
For that reason, Atlas International offers flexible supply chain management solutions, including LTL services. With our expansive global network of warehouses and transportation providers and the ability to fine-tune our services, we're ready to help you find the best shipping solution for your needs. Tap into our 1,000-plus warehouse locations across North America, benefit from our transportation network and enjoy complete visibility of your inventory and shipments. Reach out today to request a quote and learn more about our 3PL services.