December 2nd, 2020  
 

The Power of LTL

 

We recently onboarded a new customer who was moving all freight above 20,000 lbs via full truckload. Lots of companies do this, and sometimes it works. But our representatives get to know each customer and the unique needs of their businesses. At the same time, we have long-standing relationships with a variety of carriers who have docks in the main markets of chicago, Atlanta, Los Angeles, San Francisco, New York, New Jersey, Dallas, and Laredo among others. This means we’re available to resell their ability to take large LTL shipments at a reduced rate from what it would cost for truckload. And that’s exactly what we did with our new customer.

 

We were able to provide volume LTL pricing for their non-time sensitive freight. But here’s the kicker–we can do this while providing the same level of communication they’d become accustomed to with truckload freight. Because we’re a full-service, customer-oriented broker, real-time communication is a priority for us, and it made a huge difference for our customer whose experience with LTL was less-than-stellar.

 

Customers are different. They have different freight and different needs. Sometimes they’re priority is customer service, and other times it’s on-time delivery or pricing. When it’s pricing, LTL is often a good choice, allowing us to offer great pricing while ensuring the exemplary customer service we’re known for.

Will LTL (less than truckload) shipping work for your company?

 

• Less-than-truckload (LTL) shipping is most often used for small shipments–typically shipments weighing 100 to 15,000 lbs and between one and six pallets (although larger shipments can be accommodated).

 

• When you ship LTL, your shipment will share a full truck with other shipments traveling in the same direction which means it is less costly because you are also sharing the price of a full-truckload with these other shipments.

 

• Time is a consideration in LTL because LTL shipments often make many stops on the way to their destination. If your freight isn’t time-sensitive, LTL can be an excellent choice

 

• At the same time, the more durable your freight the better suited it is to LTL. When you ship LTL, your freight may be moved several times as other shipments are loaded and unloaded.

 

The Benefits of LTL Shipping

 

If LTL is a good fit, what are some of the benefits of shipping LTL?

 

 

• Environmentally Friendly. When you ship LTL, you minimize your carbon footprint by ensuring trucks operate at maximum capacity.

 

 

• Transparency.  LTL shipments are easily tracked with the BOL (bill of lading) number, PRO number, and PO number.

 

 

• Ship Smaller Quantities. LTL allows you to ship smaller volumes rather than waiting for production to produce a truckload shipment.

 

 

• Save Money.  LTL is more cost-efficient because your company pays only for the small portion of the trailer being used.

 

 

How are LTL rates calculated?

 

The cost of each LTL shipment depends on several factors.

 

• Pickup/Delivery Location. The further your shipment must travel, the higher the cost.

 

• Freight Class.  Freight classes are determined by The National Motor Freight Traffic Association (NMFTA) to keep LTL prices standard across LTL freight carriers. Both weight and dimensions are used to determine a particular freight class which then determines the cost of the shipment. 

 

• Accessorials. Accessorial charges are additional services that have added costs; such as, ground pickup or delivery, residential pickup or delivery, liftgate pickup or delivery, and detention among others.

 

• Commodity. Commodity type can also affect price. For instance if a product requires special handling or equipment (hazardous materials, strict temperature controls, tanker endorsements) you will see an increase in price.

 

LTL at ILG

 

If you’re interested in saving money with LTL shipping, give the experts at ILG a call today. The experts at ILG provide a full-service LTL program allowing you cost-savings with LTL transportation. We use both contract and common carriers when consolidating shipments to ensure your freight is moved efficiently with substantial savings.