Less than truckload (LTL) shipping gets often implemented for shipments that are usually large, not suitable for parcel shipping but do not occupy the entire trailer space. Regardless of the money spent on less than truckload transport service, every manufacturer, distributor or retailer would want to reduce the cost. One of the most common remedies is freight consolidation, where the shipping cost is split with several shippers to make it a full truckload. Apart from reducing the rates, it further improves delivery speed, optimises supply chain logistics and minimises the carbon footprint. Other than consolidation, there are plenty of ways in which they can reduce LTL freight transport rates. This article discusses a few factors that help keep LTL costs at the lowest.
The LTL market is different from full truckload (FTL) freight services, where there are large carriers with complex networks. And so, LTL freight rates are calculated differently compared to FTL shipping rates. Typically, for LTL freight transport, carriers charge tariffs on the rates for their services offered. These tariffs differ between the customers. Often the LTL rates are not based on the conditions in the market. In short, LTL freight rates are pre-determined. Indeed, it relies on the freight classification and weight and volume of shipment, pickup and delivery location. Therefore, how would you reduce shipping rates for LTL freight?
1. Less Frequent Large Loads
Consider shipping large loads but less frequently. Shippers need to check with their respective customers if they accept large loads with considerable gaps between two deliveries. It gives immense savings in LTL freight transport rates. For instance, it is always wise to move twelve pallets in one month than transport three pallets each in four weeks. However, the big question is if customers accept your strategy. Shippers have to offer them price discounts or share the amount saved on LTL shipping rates. In this way, it would be much easier to keep the LTL price quotes low. For shippers dealing with consumer goods, follow an inventory management strategy that helps retailers to make payments only after the items get sold out to their end consumers.
2. Reduce Space
Have a close check on the area the shipment occupies, or else shippers have to splurge money for moving freight under the LTL freight transport service. Shippers have to reduce bulk packaging and increase the number of items packed on a pallet. Make sure to avoid pyramid-shaped pallets as they make secure stacking difficult. And also, the chances are that shippers may end up splurging more for the additional area the shipment occupies inside the carrier. Further, shippers must give the most accurate dimensions and weight to keep the LTL freight transport rates minimum. The more the capacity; correspondingly, the shipping rate also becomes high. Once we discuss the next significant factor affecting freight rates, we will get a clear explanation regarding the importance of reducing the area occupied by freight.
3. Go for Maximum Freight Density
When you rely on LTL shipping, the cost is incurred not just for weight but also for the trailer space used. If your shipment consumes only less room, the carrier company have more capacity for other shippers; they charge less from you. Generally, as mentioned above, LTL freight transport rates are calculated based on weight, freight class and the distance between pickup and delivery points. Freight classification considers the shipment density, which is arrived at by dividing the total weight of the shipment by its volume. When density is higher, the shipping rates will be the lowest. Usually, higher class freight implies less dense, lighter products that use more area. Hence when freight class is higher, the shipping cost will also be higher.
4. Product Design and Packaging
Only a handful of manufacturers factor in the influence of product design on shipping and warehousing costs. Indeed, it significantly affects both the costs and impacts the bottom line. However, there is always a fix by consulting your logistics department in the early stages of developing the prototype, especially during the design and development phase. Also, the packaging departments should know the packing type that supports easy stacking and effortless shipping. Nine times out of ten, the packaging is the most ignored segment when looking for ways to reduce freight transport costs. Most digital freight forwarding companies use a shipping cost calculator that considers the weight and size of the freight alongside the distance between origin and destination. Therefore, keep in mind to select the packages matching shipment size that they do not take up additional area or add to the total freight density.
Save More on Your LTL Shipping Costs from Now Onwards!
We have seen a few prominent factors affecting the LTL freight transport rates. When you have so many considerations in freight movement through LTL transport, partnering with a freight forwarding platform that uses advanced technologies would help you avail of the most reasonable rates. Your freight forwarding partner can suggest several ways for moving freight cost-effectively while keeping your shipping needs fulfilled. For eCommerce delivery solutions, freight forwarders provide all-in-one solutions that support efulfilment, storage, shipping and delivery.
Move your Loads Through Ianis Cargo Express
Ianis Cargo, the most advanced digital freight forwarding platform for moving freight across Europe, uses a versatile shipping rate calculator to arrive at the lowest price quotes for customers. With plenty of carriers and support networks, Ianis Cargo keeps freight transport simple, safe and straightforward for its customers. For hassle-free delivery solutions, Ianis Cargo has partnered with several well-established couriers so that customers can access the rates provided by them instantly. While using an intuitive algorithm, customers get the lowest rates quoted by the couriers. Apart from LTL trucking, Ianis Cargo also provides express transport solutions and FTL service for B2B and B2C companies. Express freight transport is a dedicated service where a single shipper can move freight from one location to another without sharing the trailer capacity or any halt between the pickup and delivery destination. Similarly, shippers can also avail of FTL service if their freight is comparatively huge and requires the entire trailer capacity. Avail of eCommerce delivery solutions, palletised distribution, and freight movement with Ianis cargo to get safe and timely delivery with 24/7 tracking facility!