When your cargo is too big or heavy for small parcel service but not quite large enough to justify FTL service, LTL freight service will be your right-sized solution.
Less-than-truckload (LTL) service offers business owners a cost-effective method for moving cargo in which they only pay for the space they need. Each shipment essentially “shares space” with other cargo headed for similar destinations, as opposed to FTL shipments, which get their own dedicated trailer.
To help you make the most of your next (or your first!) LTL freight shipment, check out our tips below. We’ll start with the basics of LTL freight: What is it? How does LTL compare to FTL? And what are the pros and cons of LTL freight?
Understanding the LTL Shipping Process
What Does LTL Mean in Shipping?
LTL stands for Less-Than-truckLoad. It refers to a cargo shipment that “carpools” with other cargo shipments along the way to its final destination. Trucks carrying LTL freight make multiple stops to pick up and drop off freight along their routes.
Benefits of LTL Freight Shipping
- Lower shipping costs than FTL shipping
- Flexibility to pay only for the space you need
- Ideal for smaller shipments
Considerations of LTL Freight Shipping
- Higher cost per unit compared to FTL
- Longer transit times due to multiple stops
- More frequent handling of cargo
How to Ship LTL Freight Tip #1: Packaging Is Paramount
One of the cons of shipping LTL freight is the fact that it’s often subject to more handling than FTL freight. There’s also a slightly higher risk of damage, since items will be loaded and unloaded around your cargo.
Your best protection against this risk is proper packaging. Where possible, we suggest palletizing your goods. Palletized goods can be loaded and unloaded with a forklift, which reduces manual handling.
Additionally, reviewing best practices for palletized freight will help you manage further risk to your cargo. To sum it up, make sure to:
- Avoid pallet overhang
- Use corner boards (also known as “edge protectors”) to reinforce heavy hauls
- Secure the load properly to the pallet to avoid shifting during transit
For certain loads, crating can be a better option. This is especially true for items like small machinery, which can benefit from the extra protection of a crate. Additionally, crating a small machine can make your shipment stackable, which can reduce your cost.
How to Ship LTL Freight Tip #2: Measurements Matter, as Does Freight Class
When you book an LTL freight shipment, you’ll need to enter the shipment’s exact dimensions—length, width, and height—as well as its weight. All of this plays into the shipment’s freight class, which will impact the pricing for your LTL shipment.
Freight class reflects an item’s “transportability”—how hard or easy it will be for the carrier to move it.
Transportability boils down to four elements:
- Density: How dense is the shipment? In other words, what’s its weight as compared to its volume? (That’s where those dimensions come into play!)
- Stowability: What is the size and shape of the shipment?
- Ease of Handling: What kind of care is needed to move the shipment?
- Liability: How valuable is the shipment, and how vulnerable is it to perishability, theft, or damage?
On the basis of these factors, every commodity is assigned to one the standard 18 freight classes, which will impact its shipping cost.
If you’re new to LTL shipping, picking the right freight class can be challenging. If you know your shipment’s National Motor Freight Classification (NMFC) code, you can match that code with a freight class. If you’re using a freight broker or freight forwarder, they can help you determine your freight class.
All of this is to say: Several elements of your quote hinge on accurate freight measurements. If you fudge any of the numbers, you risk delays as well as a recalculation of your quote, both of which can throw a wrench in your logistics.
How to Ship LTL Freight Tip #3: Know When It’s Time to Move to FTL Service
LTL freight shipping can be cheaper than FTL freight shipping. For example, if you’ve only got two pallets of freight to move, your LTL quote will come in much lower than an FTL quote for those same two pallets.
However, there’s also a tipping point at which it makes sense to consider FTL. After all, FTL offers economies of scale. Think about it this way: If you choose FTL for a trailer full of auto parts, your cost per unit will be lower than sending two pallets of those same auto parts LTL.
Once you start regularly shipping six or more pallets, ask your freight broker or freight forwarder to quote out both LTL and FTL service so you can see the cost difference. As a bonus, you’ll get to reap the extra benefits of FTL service: greater security, minimal handling, and a faster, more dependable timeline.
How to Ship LTL Freight Tip #4: Consider Working with a Freight Broker
Access to a Vetted Carrier Network
Working with a broker can save you the trouble of vetting carriers on your own. Instead, when you use freight brokerage, you’ll get instant access to their network of trusted LTL carriers.
Multiple Quotes from One Point of Contact
Your broker will reach out to their carrier partners, locate those with capacity for your load, and gather quotes.
More Competitive Pricing
Because they can quote your shipment with multiple LTL carriers, a freight brokerage can quickly and easily find the best price for your shipment.
If you establish a partnership with a broker you trust, it can make your logistics smoother, simpler, and more cost-effective.
How to Ship LTL Freight Tip #5: Avoid Unexpected Charges
Nothing disrupts your freight budget faster than unexpected charges. That’s why it’s so important to be aware of potential accessorial charges.
In some cases, you may be perfectly willing to pay for an accessorial charge. If, for example, an inside delivery would add significant ease to your operations, that’s a perfect reason to upgrade from standard curbside delivery.
Accessorial charges really only become a problem when you haven’t anticipated them—or you could have avoided them. To help you keep your LTL freight costs down, let’s cover two common ones that trip up new shippers:
#1: Freight Reclassifications
As we mentioned above, if you haven’t accurately measured or described your freight, you might end up with the wrong freight class for the commodity you’re shipping. The carrier moving your LTL shipment will usually check the freight class of each shipment. If yours is incorrect, your price will be adjusted accordingly, and the cost for reclassification will be added to your invoice.
To avoid a freight reclassification charge, talk to your freight broker or freight forwarder when you’re quoting out your shipment. It can’t hurt to double-check that you’ve got the right freight class for your shipment!
#2: Liftgate Service
If your delivery location lacks a loading dock, you’ll need liftgate service. Specify this need upfront to avoid redelivery fees.
How to Ship LTL Freight Tip #6: Know Your Insurance Options
Whenever you’re shipping freight, there’s always a slight possibility of damage—or complete cargo loss. To protect yourself against the financial hit of these losses, consider insuring your LTL freight shipments.
Carriers do offer limited liability coverage for LTL freight shipments. However, this protection often comes with several caveats:
- To be covered, the damage or loss must be due to carrier negligence, and it also must be proven that the damage occurred while the freight was in the carrier’s possession. (For example, consider what happens if the carrier successfully argues that the freight was already damaged when they took possession.)
- Additionally, a carrier’s financial liability for LTL freight shipments varies by freight class, with coverage ranging from $1-$25 per pound.
If you’re looking for more complete coverage, talk to your freight broker or freight forwarder about full-value cargo insurance. It’s the best way to protect your investment in transit.
Optimizing Your LTL Freight Shipments
Want some help optimizing your next LTL shipment? Talk to our expert team. We can connect you with the freight solutions that keep your business moving forward, including FTL, LTL, FCL, and LCL solutions. Reach out today for a complimentary quote.
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