LTL Vs FTL Shipping: A Quick Comparison

What do LTL and FTL mean in the logistics and freight transportation industry? Read on the blog to discover the major differences between FTL and LTL shipping.

Logistics industry is transforming at an unprecedented pace and shippers need to evolve to keep up with the dynamic demands of customers. And that is why majority of businesses opt for a third party logistics (3PL) partnership to get more value from their supply chains. Since freight shipping is a complex process, transportation and logistics industry follows a number of techniques and strategies to ensure safe delivery of products.&nbsp;

Full Truckload (FTL) shipping and Less Than Truckload (LTL) shipping are the most popular shipping methods used by freight brokers and 3PL companies. Businesses need to understand the key differences between FTL and LTL methods in order to choose the right shipping mode and make the most out of their budget. Here, we have outlined the major differences between FTL and LTL shipping.

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	Overview
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</ul>

When a shipper contracts an entire truck for a single shipment by gaining its exclusive use, it is termed as full truckload. A shipping service where the freight is smaller than a whole truckload and multiple shippers share space on the same trailer by only paying for their freight weight is termed as LTL.&nbsp;

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	Cost
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</ul>

Since FTL uses a full truckload exclusively for a single shipper, it costs higher than LTL service. Even though freight quotes vary according to different factors, it is safe to say LTL method is much cheaper. For LTL shipping, businesses shares trucking space and costs with other shippers. Small- to medium-sized businesses can make the best of LTL shipping by shipping smaller, single load deliveries. On the other hand, FTL shipping is ideal for larger companies that need to ship large quantities of palletized freight.&nbsp;

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	Time
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</ul>

If you are pressed for time, then FTL is the way to go. Since FTL shipments mostly follow a point-to-point transit model, the delivery would be faster and efficient. As LTL freight shipments makes multiple stops at carrier terminals and travels on a hub system, it would take a lot longer to reach the destination.&nbsp;

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	Freight handling
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</ul>

LTL method involves multiple transfers and increased handling of freight, which raises the likelihood of damage to shipments. However, FTL shipments travel on a single truck to its destination, which keeps the freight safe. If you are shipping something fragile and easily susceptible to damage, then FTL service is your best bet.&nbsp;

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	Freight weight
	</li>
</ul>

Generally LTL freight shipments should weigh between 100 to 15,000 pounds and not occupy more than six pallets. Freights heavier than 15,000 pounds need to consider FTL shipment.&nbsp;

Ultimately, you need to choose a shipment method by analyzing different variables such as size and freight class, distance from origin to destination, budget and how fast you need it delivered. Having a sound understanding about your shipment requirements help you choose the option best suited to your needs.

The Future of Shipping in the new normal

Wow, talk about busy! Things have NOT slowed down here!
The "New Way" which has become our daily lives is both annoying and amazing! When the virus pandemic first began it was a change for the whole world.

Wow, talk about busy! Things have NOT slowed down here!

The &quot;New Way&quot; which has become our daily lives is both annoying and amazing! When the virus pandemic first began it was a change for the whole world.&nbsp;Without this virus, our levels of communications that had thus far been used primarily for social purposes, was quickly adapted for business and education. Our whole way of life has changed and likely will never go back.

Why, you might ask?

Primarily the work/school from home aspect. While there are a great many people who were not prepared for this, the &quot;ripping-off-the-band-aid&quot; situation we found ourselves in has created a lot of adaptation across the country. Between private and public funding remote learning has become much more obtainable. This availability will only grow as time passes.

Likewise, many employers have invested in home office equipment for their staff and have conducted business successfully with their employees working from home.&nbsp;Employers are learning that giving up a little control in the office is well worth the financial overhead saved in not having an office at all, or at least down sizing to essential in house staff only.&nbsp;

Industries where in person patronage was common place have adapted to curb side pickup and home delivery. Ride share companies have adapted to home delivery services as well. I mean, why not? They&#39;re already out and about, so why not stop and pickup that hoodie for Barbera&#39;s daughter and that prescription for old man Jones? It&#39;s capitalism in the works.

Which brings in the biggest boom in transportation this year! Home deliveries. From manufacture to retail and retail to the last mile, home shopping and home deliveries have become the biggest boom in the transportation industry has seen in years! Now, work and personal deliveries are both being made to the home offices rather than split between the home and the corporate office. And like everything else American, instant results is what&#39;s required to stay on top. Shipping quotes are no different.

Instant shipping quotes are a big risk for the quoter. Shipping lanes, rates, and volume change as quickly as the winds so often quotes require a little research to ensure they&#39;re going to match the current environment without coming up short. A complex algorithm is needed to instantly calculate data and produce a quote which is priced well&nbsp;enough to be fair for all parties. If this was easy, there would be more instant quoting&nbsp;options available than there currently are. Give it time though. Like everything else that&#39;s worth having, more will come.&nbsp;

In the meanwhile, TruckQuote.com is already up and running and providing instant shipping quotes to customers across the United States!

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The New Normal in American Shipping

7 Key Factors that Determine LTL Freight Rates

What are key factors that determine the LTL freight shipping costs? Check out our blog post to find out.

Less than truckload or LTL freight shipping has been a popular and cost-effective way for companies to transport small orders ( around 150 pounds to 10,000 pounds). Collecting freight from multiple shippers and making the most out of trucking space, LTL shipping provides greater flexibility, better control and cost savings. However, estimating LTL freight rates can be a confusing task. Having a better idea about the key factors that determine LTL freight rates can help you in preparing the shipments effectively. Here are the seven important factors that affect the LTL rates.

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	Weight
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</ol>

Freight quotes of LTL shipping are based on a hundredweight pricing scheme. If shipment&rsquo;s weight increases and approaches the lowest weight in the next heaviest weight group, it will be categorized into the lowest weight category and rated in that weight group.&nbsp;

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	Density
	</li>
</ol>

Shippers should know how to calculate their freight&rsquo;s density in order to deduce the freight class and enter it in bill of lading (BoL). Total weight of the shipment is divided by its total cubic feet to calculate the freight density. If your shipment is palletized, then it is essential to measure the pallet&rsquo;s dimensions too. Longest sides of the shipment including the packaging, overhangs or protrusions should be taken into consideration.&nbsp;

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	Classification
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</ol>

Every order is categorized into a freight class before shipping. Freight brokers and third party logistics (3PL) providers follow the freight classification standards set forward by The National Motor Freight Traffic Association (NMFTA). The class is determined by checking the shipment&rsquo;s density, value, stowability, handling and liability. As the freight class moves on to higher levels, the rate will also increase. Lower class have lower rates and higher class will have higher rates.&nbsp;

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	Distance
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</ol>

In general, the longer the distance, the higher will be the shipping costs. Most freight brokers and 3PL providers serve only for specific locations. Make sure to enquire about the zip codes they ship directly. If your carrier doesn&rsquo;t offer shipping services to your shipment destination, then the freight will be transferred to another LTL carrier for final delivery. And this will result in higher freight quotes.&nbsp;

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	Base rates
	</li>
</ol>

All the LTL carriers have their own base rates and it varies from carrier to another. Base rates are quoted per 100 pounds (CWT - centum weight). Volume, demand and gross costs of a freight shipment will influence the base rates.&nbsp;

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	Minimums
	</li>
</ol>

The minimum or absolute minimum charge (AMC) is a fixed cost after application of all pricing terms. Carriers won&rsquo;t go below the minimums, even after the negotiation. The minimum charge covers all their fixed costs for a specific shipment or lane. Enquire about your carrier&rsquo;s AMC before moving your freight across short distances.&nbsp;

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	Accessorials/Surcharges
	</li>
</ol>

Freight accessorial charges stem from the additional services carried out by the carrier to handle your shipment. Some common examples include lift gate service, residential pick-up or delivery, weekend delivery, limited access locations and more. Fuel surcharges are the most common accessorial fee charged by all LTL carriers.&nbsp;

Whether you are shipping a single cargo or multiple orders, knowing how freight rates work is the absolute key. Not only it helps in controlling shipping costs, but also proves beneficial in managing your LTL freight efficiently.

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7 Key Factors that Determine LTL Freight Rates

Top 5 LTL Shipping Mistakes You Must Avoid

This blog discusses the common LTL shipping mistakes and how to avoid them.

The primary objective of any shipper is to get their products to market on time at the lowest cost available without sacrificing the quality. That is why many companies are switching to less than truckload (LTL) freight shipping in order to minimize costs, gain greater flexibility and streamline their logistics operations efficiently. However, businesses must know how to optimize their shipping process to reap the maximum benefits of LTL freight shipment. Learning about the transportation and logistics industry, recognizing the latest trends and avoiding common shipping mistakes can help your business save time and money. Read on to discover the common LTL shipping mistakes and how to avoid them.&nbsp;

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	<li dir="ltr">
	Not using freight brokerage services
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</ol>

Freight brokers act as a facilitator between shippers and carriers, helping both the parties create reliable and profitable relationships.&nbsp; If your business hasn&rsquo;t hired the services of a third-party logistics (3PL) provider, then you are missing out on a number of benefits. Not only freight brokers are well-versed with the latest industry practices, but their business connections with carriers can get you the best freight shipping rates.

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	Overlooking packaging
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</ol>

LTL shipping involves multiple transfers and increased handling of freight. Poorly packed freight have a higher likelihood of getting damaged during the transit. Many businesses overlook the importance of packing the products properly. Carriers can&#39;t be held accountable for cargo damage caused by insufficient packaging. Hence, make sure to pack and palletize your cargo properly depending on its weight, size and fragility. Even though palletizing freight takes considerable time and effort, it will be worthy. Securing the goods to pallets with stretch wrap, bands and cushioning materials increases portability and reduces risk of product damage.&nbsp;

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	Skipping insurance
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</ol>

Many businesses plan to cut corners by avoiding freight insurance. Risk, loss and damage are quite common incidents in trucking industry. Skipping cargo insurance is a risky decision as it may end up costing your company potentially devastating damages in case of a natural disaster, theft or traffic accident. Insurance costs may seem like a deterrent, but it could give a peace of mind by protecting your freight from physical losses or damages during the transit.&nbsp;

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	Documentation errors
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</ol>

Whether you are shipping via road, sea or air, it is essential to get the documents right. Bill of Lading (BoL) is a case in point. Furnishing all the necessary details required for an LTL freight shipment, BoL document helps to process and invoice freight accurately. Erroneous data provided in the shipping documentation could result in missing or delayed order deliveries, thus negatively affecting your customer service quality. So, shippers need to fill out the shipping documents diligently and get it double checked.

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	Inaccurate freight dimensions
	</li>
</ol>

Freight class of an LTL shipment is determined according to the product&rsquo;s weight and dimensions. However, many shippers doesn&rsquo;t have any weighing scales and systems for checking their freight dimensions accurately. When freight dimensions are inaccurate, it would lead to freight classification errors, consequently resulting in re-weighs, re-classes and unplanned expenses. It is important to implement a standard weighing and scaling procedure to determine the correct classification of your freight. Accurate listing of freight class will save time and money for all the parties included.

Most shipping mistakes are caused by a negligent mindset and lack of expertise. So, make sure to pay heed to details in order to keep shipping costs down and maximize efficiency.

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A Guide to Temperature Controlled Shipping

Everything you need to know about temperature controlled freight shipping.

The skyrocketing popularity of e-commerce has been transforming the traditional supply chain into integrated value chains. Manufacturers and retailers are branching out further to meet ever-changing customer demands. An increase in the online sales of perishable goods and pharmaceuticals demands efficient and secure logistics solution. And that is when temperature controlled shipping comes to the limelight.&nbsp;

What is temperature controlled freight shipping?

There are a sheer variety of products that need to be transported with a predefined temperature range. Some common examples include fruits, flowers, vegetables, dairy products, seafood and pharmaceuticals. Shipping out such products without ensuring its temperature compliance will lead to its degradation of quality, thus resulting in significant financial loss, damaged reputation and angry customers. Temperature controlled shipping specializes in the transportation of goods that are sensitive to climatic conditions and require special handling and storage from dock to dock.&nbsp;

When you have temperature-sensitive goods to transport, it is essential to plan everything beforehand. Here are a few temperature controlled shipping tips for you.&nbsp;

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	<li dir="ltr">
	Evaluate your goods and define your needs&nbsp;
	</li>
</ul>

Have a clear idea about your transportation management and warehousing requirements. Partner with an experienced freight broker or 3PL provider that understands the demands of your supply chain. Enquire whether they have experience in handling temperature-critical LTL freight shipping and what security measures they have in place for protecting the cargo during transit. Do compare the performance metrics and freight quotes of multiple companies before making a choice.&nbsp;

Make sure to communicate the finest details with your carrier through a quality agreement. The requirement specifications should include major details such as acceptable temperature and humidity range, margin of error, acceptable levels of risks and specific no-go actions. Moreover, it is also essential to follow the health and safety regulations and standards so that it ensures a product is served unadulterated and with its efficacy fully intact.

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	Understand different service options
	</li>
</ul>

Carriers have different methods to control the temperature of trucking and other transporting equipment. There are mainly three types of temperature controlled logistics - refrigerated vehicles, passive shipping container and active shipping system. Refrigerated vehicles such as trucks, semi-trailers and vans are equipped with specific technology to maintain the temperature range of the products within the vehicle. Passive shipping systems make use of a combination of insulating materials and electronics to maintain the specific temperature range, whereas active shipping system involves portable containers powered by on-board batteries or external electrical source to moderate the ambient temperature. While passive systems are best suited to transport single small doses to multiple pallets for short journeys, active systems are ideal for shipping larger volumes of cargo. Having a thorough understanding of your packaging and shipping needs will help in determining the right service.&nbsp;

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	Always have a contingency plan
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</ul>

Businesses shipping temperature-sensitive products should always have a well-thought and detailed contingency plan in place. Not only such backup plans makes the freight operations more flexible to any foreseeable challenges , but also helps in quick recovery even in the worst of situations. Make sure to have a detailed discussion with your logistics and shipping partners to come up with an effective contingency plan.&nbsp;

Whether you are shipping life-saving medications or fresh cut flowers, it is essential to perform due diligence and make informed decisions to ensure timely and dependable product deliveries.&nbsp;

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5 Strategies to Reduce Freight Shipping Costs

How to avail the best rates on freight shipping? This blog post offers you a few tips to reduce your freight shipping costs effectively.

Businesses are always looking for ways to streamline their operations and cut down costs. However, enterprises, especially SMEs spend a substantial share of their budget for freight shipping. Since shipping costs are unavoidable and have a direct impact on customer experience, companies find it difficult to cut corners.&nbsp; A <a href="https://baymard.com/checkout-usability">recent study </a>states that unexpectedly higher shipping cost is one of the major reasons shoppers abandon carts. And that is why companies are searching for smart solutions to reduce shipping costs.&nbsp; Freight quotes are calculated according to a few factors such as how quickly the items need to be delivered, pick up and drop off locations, weight and dimensions of package, special handling and associated fees. Implementing some simple changes in your shipping strategy will help you optimize the process and get the best rates on shipping your freight.&nbsp;

1. Know your industry

Do a detailed research to stay up-to-date on the latest trends in logistics and transportation industry. Learn the lingo so that you can familiarize yourself with the carrier&rsquo;s business. There are a number of carriers in the industry and you need to negotiate with multiple carriers to find the best deal. Understand the shipping tariffs, taxes, regulations and carrier&rsquo;s liability in detail, as they apply to pricing.&nbsp;

2. Evaluate different modes of transportation

As you may already know, there are three primary ways to ship your freight - by road, air, and ocean. If you are shipping products to foreign countries, then sea freight transportation would be cheaper. When it comes to localized shipping, the best choice would be rail transport. Evaluate your transportation modes according to the freight type and delivery time duration. The smartest way is to opt for a hybrid mode where you can utilize a combination of air, sea and railroads.&nbsp;

3. Consolidate your shipment

Freight brokers and carriers often receive multiple goods to the same destination. You can make the best use of retail consolidation to cut down on shipping and packaging costs. All you have to do is&nbsp; combine your LTL (less than truckload) freight goods with other companies that are shipping to the same distributors and retailers.&nbsp; Visit the local Chambers of Commerce offices or consult a third party logistics (3PL) provider to discover suitable shipping partners in and around your vicinity.&nbsp;

4. Ship more, less often

Instead of shipping small orders frequently, it is recommended to ship or buy in bulk so that it helps reduce freight costs. Offering incentives or special deals to customers will encourage them. No matter whether you are a B2B or B2C business, the same concept holds.&nbsp;

5. Take smart decisions

When it comes to packaging and shipment, think smart. For instance, you may choose to ship non-consumer type and non-perishable goods during off-peak days such as Friday or Monday. Changing your freight shipping schedule to a day earlier or later will help&nbsp; yield adequate savings. Packaging is another important aspect that accounts for the smallest segment in the logistics and supply chain. However, it has a direct impact on transportation management and warehousing hosts. Make it a point to design packaging with freight efficiency and optimization in mind.&nbsp;&nbsp;

Every dollar saved in freight shipping costs can contribute to the business&rsquo; bottom line. Hence make sure to think outside the box and implement some smart strategies to reduce unnecessary costs and get the best value for your money.

LTL Vs FTL Shipping: A Quick Comparison

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