Looking for Low Cost Shipping Service? Find Out How LTL Works

Shipping practices must be among the most important decisions a company makes. After all, delivery expenses make up a large portion of the budget since they make shipments consistently. Nowadays, lots of growing businesses, especially eCommerce, use LTL services or less-than-truckload services to restock their products or deliver orders to their customers. This is because LTL allows them to cut additional costs when moving smaller quantities of goods.

Here, you will find out why LTL matters, especially to small businesses, and how it works.

What Is LTL?

LTL freight shipping is a shipping service for carrying small loads of goods weighing 150 to 15,000 pounds, without using the entire truck. A shipper pays for the portion of a truck trailer their freight occupies, while other shippers also pay for the area their shipments occupy.

This service is provided by truck freight business, which is offered in the following carrier types:

  • Local Carriers. Freight companies, which operate within a regional radius of 80 to 800 miles.
  • Regional Carriers. Companies that move products within larger areas than the local carriers. They also deal with local and nationwide carriers between unconnected distribution centers.
  • National Carriers. These companies work throughout the country and offer more transportation equipment with more workers and market competence.

Factors that Determine LTL Shipping Rates

1. Location. In general, the farther the distance, the greater the price.

2. Mode. LTL shipments can be expedited or accelerated transport for an additional cost.

3. Dimensions. The measurements and weight of a shipment directly affect rates.

4. Type. Usually, a shipment requiring special handling or devices, like fragile, hazardous products, or perishables, will have higher costs.

How Does LTL ShippingWork?

Given that you combine your small shipments with other carriers to create full truckloads, you can save from paying full truckload costs. Its rate depends on the space occupied, the class of products being delivered, and pickup and destination locations.

Advantages of LTL Shipping

1. Cost Savings

Due to the reason that your shipment doesn’t occupy the whole truck space, its expense is computed based on just how much it occupies, which is cheaper than what a regular delivery would cost.

2. Minimized Storage Facility Costs

As a small company, you can depend on LTL freight shipping to minimize warehousing costs rather than renting extra space. You will not need to store many products at the same time because you can send out some through LTL shipping.

3. Environmental-Friendly

Many people do not understand that the LTL shipping process also aids the environment in a great way. Emissions are lowered if you utilize fewer trucks to carry full loads, rather than more trucks transporting less than their capacity. Because lesser trucks need to get to their destinations, there are also fewer carbon emissions or carbon footprints.

4. Enhanced Customer Service

Since many freight companies provide flexible and practical service choices, this will help reduce the shipment time that helps enhance your customer service. These could be residential delivery, inside delivery, and more.

5. Easier Tracking of Shipments

Forget the trouble of tracking your deliveries since most freight businesses have modern and state-of-the-art tracking systems. This also enables your customers to keep an eye on the progress of the shipment.

Last Thoughts on LTL Shipping

Choosing LTL as your method of transporting goods to your customers is no doubt efficient and cost-effective. However, it’s important to know how the LTL industry works and how it benefits you as a small business to ensure quality transport. It also helps to know the types of shipping methods you can use, such as dry van transport, flatbed trucks, and refrigerated options, depending on your products.

Here’s a practical tip from us: If you have multiple orders from different locations, third parties may save you. But if these orders are going to the same destination, try shipping them at the same time. On top of these, ensure to know accurate information of your shipments, like the weight of your goods and the number of pallets your products will move on.