LTL shipping definition.
Less-than-truckload (LTL) is used to transport small loads or when the load does not require the use of an entire trailer. This shipping method can be used when the cargo weighs between 150 and 15,000 pounds.
When shipping LTL, shippers pay for the portion of a standard truck trailer their cargo occupies, while other shippers and their cargo fill the vacant space. Shipping via LTL has many benefits.
LTL Freight Benefits
1. Cost savings
LTL shipments consist of several smaller shipments that can fill a full truckload. Since your shipment only uses a portion of the truck’s available space, you only pay for the space you use. This ensures that your cost will be a fraction of the normal full truckload cost.
2. Great for e-commerce
In a world where e-commerce has become the norm, businesses need to ensure that their shipping methods match their customers’ needs. LTL shipping increases efficiency and speed of delivery by bypassing the need to fill a truckload with each shipment. Shipping with LTL ensures that your goods or inventory arrives exactly where they need to be, when they are needed.
3. Small business friendly
Small companies benefit greatly from LTL shipping. Most small businesses ship less and have less shipping costs than larger companies. LTL shipping allows small businesses to benefit from the services offered by professional shipping without paying high costs for unused space.
4. Environmental awareness
The LTL shipping process results in fewer trucks loaded with full cargo, rather than more trucks loaded with less than their capacity. The reduction in the number of trucks required to deliver goods to their destination reduces emissions and your company’s carbon footprint.
Disadvantages of LTL Shipping
1. Shipping time
One disadvantage of this method of transportation is that LTL shipments often take longer to reach their destination because the shipment is brought back to the carrier’s terminal and combined with other shipments destined for the same destination area. Therefore, shipping times are always estimates, not guaranteed.
2. Higher risk of damage
Because LTL cargo doesn’t stay on the same truck for the entire transit, it’s more prone to damage as it is unloaded and loaded at each terminal along the way. That’s why it’s essential to follow recommended industry standard guidelines to pack your pallets safely.
3. Not suitable for many trays
LTL rates may not be optimal for shipments over 6-8 pallets or weighing over 10,000 lbs, in which case it may be more cost effective to use partial or FTL shipping.
LTL shipping is the most recommended shipping method for the 1-6 pallet range. If you are transporting less than a full truck or part of a truck, LTL shipping offers flexibility, is environmentally friendly, and is undoubtedly the most cost-effective option for small and medium businesses.
When to choose LTL shipping.
LTL shipping is ideal for businesses with shipping rates under 15,000 lbs and no need for a full trailer.
Consider LTL when looking to maximize cost savings.
Prepare for LTL shipping.
Dimensions: When measuring the length, width and height of your shipment, round to the next inch. Accurate dimensions are critical for carriers to maximize capacity and avoid adjustment fees.
Documentation: The bill of lading should be filled out as accurately as possible to be available to the carrier upon arrival. This document acts as a receipt for the goods being shipped.
Packaging and Labeling: Load your shipments onto pallets to concentrate and protect your shipments. Weights should be placed on the bottom of the pallet or crate and labels should be placed on the sides.
Final Thoughts on LTL Shipping
Your organization needs to realize that LTL freight is a viable logistical option. Depending on your organization and the most common types of shipments, less-than-truckload shipments can be very efficient and cost-effective. To maximize the impact of LTL shipping, stay up to date on how the LTL industry works and benefits you. Having this information ready can help you determine next steps you can take to get the most out of LTL shipping.
Get smarter solutions to meet your unique needs, meet growing consumer expectations, increase efficiency and increase speed with CH Robinson. Contact us to find out how our suite of LTL services can benefit your supply chain.
