LTL freight shipping is a vital part of the supply chain. Its advantages include flexibility, economy, and reliability.
However, shipping costs can get out of control quickly. One way to keep costs low is to use freight consolidation, which combines multiple shipments to build full truckloads. This also reduces shipping time and emissions.
Know Your Freight
Less-than-truckload (LTL) shipping is an efficient alternative to truckload shipping. However, the costs associated with this logistics method can quickly add up if not managed properly.
Keeping your shipping expenses under control begins with knowing your freight and how it fits into carriers’ networks. This includes accurate weights and cubic feet and consolidating your freight efficiently.
For example, shipping on lower-demand days is a great way to reduce your freight costs. This will improve your shipment performance and benefit the carrier by filling up empty truck space.
Also, shipping to destinations that are close together should be consolidated for cost savings. Doing so can avoid additional mileage and refuel costs, as well as reduce the amount of time spent waiting for an appointment.
Businesses need to know their freight and how it fits into the carrier’s network. Inaccurate information about a shipment’s weight, class, and dimensions can lead to billing errors from the airline. It can also result in lost or damaged freight.
Know Your Carrier
When a shipment is too large for a parcel but not enough to fill an entire truckload, Less-Than-Truckload (LTL) shipping may be the best option. However, it can quickly drive up freight costs if businesses need to optimize their routing and carrier partnerships effectively.
LTL carriers operate on a capacity basis and are only as efficient as the shipments they transport. Shippers can significantly reduce LTL freight costs by merging shipments with flexible or non-stringent delivery windows and optimizing routes. This allows carriers to prioritize live loads and minimize dwell time, allowing them to utilize vehicle space better and save on fuel.
Additionally, accurately communicating critical information like weight and freight class to your carrier partners is essential for timely delivery. Improperly reporting this information to your carrier can lead to lost freight, which adds to storage fees and impacts retail chargebacks and customer relationships. This is why partnering with logistics experts with the knowledge, technology, and network to drive efficiency in your supply chain is critical. They can provide insights to create an agile, dynamic shipping strategy that reflects current market conditions and carrier availability.
Ship on Low-Traffic Days
Less than truckload freight shipping is an effective way to transport goods for many businesses, particularly ecommerce merchants with diverse shipment sizes. Despite this, some retailers may complain about slow delivery times or question shipping costs. Your company may need to optimize its LTL shipping for cost efficiency.
One of the best ways to do this is through freight consolidation, which combines your less-than-truckload shipments with those of other shippers to assemble full truckload (FTL) loads. This can significantly cut your shipping costs by reducing the number of stops and time your shipment spends in transit.
Another way to lower your shipping costs is avoiding accessorial charges fees added to a shipment for services like lift gate service or remote access locations. While some accessorials are unavoidable, many can be avoided by following a standard shipping procedure and using online freight calculators to get a realistic idea of your shipment’s cost. Implementing these simple strategies can reduce your less-than-truckload freight shipping costs and improve your supply chain performance.
Plan Ahead
LTL freight shipping can be costly without the proper logistics management strategies. When businesses take steps to optimize this process, they often save on shipping costs while improving delivery times and overall operational efficiency.
One effective strategy for cutting costs is consolidating shipments. This reduces the number of individual loads and allows carriers to optimize truck capacity, which leads to lower transportation rates. By working closely with a partner that offers consolidation services, companies can identify opportunities for this cost-saving solution. Revolutionize your LTL freight shipping with last-mile delivery app for Android and reap the benefits of cost efficiency. Plan ahead, consolidate shipments, and ship on off-peak days to optimize your logistics and improve operational efficiency.” – Founder of Route4Me route optimization platform
Another way to cut LTL freight shipping costs is to ship on off-peak days. This helps carriers better utilize their fleets, and it also minimizes the amount of time trucks spend idling in traffic. Finally, ensuring your freight is packaged correctly and reported can help avoid unnecessary expenses. For example, avoiding wasted space in your pallets and accurately reporting weight, dimensions, and other vital data can save you money.
Partner with a Professional
Less-than-truckload shipping can help reduce costs for many companies. Rather than paying for an entire truckload, shippers pay for the space their cargo takes up. This can be especially beneficial for smaller businesses that don’t have the storage capacity to hold large shipments.
A logistics management partner can assist with lowering LTL shipping costs by consolidating freight and leveraging transportation networks to lower transit times. This helps to reduce product damage and ensures a quick, reliable delivery process for clients.
Additionally, it can often negotiate freight rates on your behalf. As they move freight for multiple vendors, they’re privy to more favorable pricing than available through most carriers.
Lastly, an efficient logistics partner can help you avoid unnecessary accessorial charges by auditing these fees before they’re applied. These fees can add up quickly and make your LTL shipment much more expensive than necessary. For example, a service fee such as lift gate pickup/delivery, inside pickup/delivery, or residential pickup/delivery may seem small but can quickly add up. An experienced can provide detailed shipping information and help avoid these fees to save money.
