What is LTL shipping and what are its advantages?

Less-than-truckload (LTL) shipping refers to the transportation of freight that equals less than a full delivery load for a semi-trailer. Partial shipments can weigh between 151 and 20,000 pounds and are combined with other partial shipments to form a full load. Once on the truck, the shipments are transported to the terminals where they are sorted and then reloaded for further shipment to their destination. The number of times a partial shipment changes hands is primarily determined by the distance it travels. For small businesses, LTL arrangements are often the result of shipping options that have been refined through the use of freight forwarding software (logistics software), which focuses on integrating a company’s shipping procedures, reducing lead time and delivery costs. Most LTL trucking companies make deliveries in the morning and pick up in the afternoon.

The main advantage of shipping less than a truckload is that it reduces shipping costs. Instead of paying higher rates to deliver shipments via a package carrier, companies can take advantage of lower truck rates. LTL is advantageous to trucking companies because it allows them to extend their business to smaller companies that, before the deregulation of the trucking industry in the 1980s, were required to ship goods via parcel carriers. or private road transport companies. The main disadvantage of LTL shipping is that the delivery time is considerably longer than Full Load (FTL) shipping. However, when a company’s small shipments are a reflection of customer demand, LTL timeliness is generally not a factor.

Companies that consider the efficiency of less-than-truckload shipping often compare it to the value of parcel shipping. Package carriers typically only ship items that are 150 pounds or less. But they are trying to convince companies to break up their shipments into smaller packages that will be awarded with prices based on algorithms. LTL shippers, on the other hand, prefer to ship as few units as possible to reduce loading and unloading time, damage in transit, and to simplify inventory requirements. The main similarity between LTL carriers and parcel carriers is that they both use a terminal system to deliver goods, while their main difference is that price per pound rates are often lower with LTL carriers.

Despite the fact that package carriers and trucking carriers compete for business, many companies use them in tandem. For example, a business might use LTL shipping to deliver its products in the correct state, and then use a parcel carrier to deliver it to the correct location. Known as “zone hopping” because the company uses LTL to “hopping” package zones, many trucking companies refuse to participate in zone hopping because it represents a conflict of business interest. For new businesses considering LTL, parcel carrier, and zone skip shipping options, implementing logistics software is an inexpensive way to get the best result for a business’ unique shipping needs. In addition to judging the profitability of carriers, the software can also reduce delivery time by analyzing traffic patterns, road construction patterns, speed limit, and route length.