Less Than Truckload (LTL) Transportation: A Comprehensive Guide to Saving Money

In the world of freight shipping, there are a variety of options available to businesses, each with its own set of advantages and challenges. One of the most popular methods is Less Than Truckload (LTL) transportation. LTL shipping is an efficient and cost-effective way to move smaller freight shipments that doesn't require a full truck. However, navigating the complexities of LTL can be a bit tricky, especially if you're looking to save on costs. In this article, we'll break down the basics of LTL shipping, explore how using a freight broker can help you save money, and discuss alternative methods like Volume LTL, partial truckloads, box trucks, sprinter vans, and flatbed LTL shipping that might offer even greater savings and quicker transit times.

What is Less Than Truckload (LTL) Shipping?

Less Than Truckload (LTL) shipping is a method used to transport smaller freight shipments that do not require the use of an entire truck. Unlike Full Truckload (FTL) shipping, where a single shipper's goods fill the entire truck, LTL shipping involves consolidating freight from multiple shippers into one truck. Each shipper pays for the portion of the truck space their freight occupies, making it a more cost-effective option for smaller shipments.

Why Choose LTL Shipping?

LTL shipping is ideal for businesses that need to ship between 150 and 30,000 pounds of freight. If your shipment is too large for parcel delivery but too small to justify the cost of a full truckload, LTL is a great middle-ground solution. LTL offers several benefits, including:

Cost Savings: By sharing truck space with other shippers, you only pay for the space your freight occupies.
Flexibility: LTL carriers offer frequent pickups and deliveries, providing more flexibility for shippers with varying schedules.
Environmentally Friendly: Consolidating shipments reduces the number of trucks on the road, which can lower carbon emissions and contribute to a greener supply chain.

The Role of a Freight Broker in LTL Shipping

Navigating the LTL shipping landscape can be complex, especially when it comes to finding the best rates and managing multiple carriers. This is where a freight broker can be an invaluable resource. A freight broker acts as a middleman between shippers and carriers, helping to negotiate rates, manage logistics, and ensure that shipments are delivered on time. Xavier Logistics (Powered by Freight-Tec) has strategically negotiated LTL rates with a network of partner carriers to get better quotes. Please email the owner Connor Maciag: cmaciag@freight-tec.com for a free quote.

How a Freight Broker Can Help Save Money

Freight brokers have extensive networks of carriers and deep knowledge of the industry, which allows them to negotiate better rates than a shipper might be able to secure on their own.

Here's how working with a freight broker can help you save money on LTL shipping:

Volume Discounts: Brokers often manage large volumes of freight, which gives them leverage to negotiate volume discounts with carriers. These discounts can be passed on to you, resulting in lower shipping costs.
Carrier Relationships: Brokers maintain relationships with multiple carriers, allowing them to match your shipment with the most cost-effective and reliable carrier for your specific needs.
Consolidation Opportunities: A broker can consolidate your freight with other shippers' freight, increasing efficiency and reducing costs.
Access to Partial Truckload and Volume LTL: Brokers can help you access Volume LTL services, which is a specialized service within LTL shipping that offers additional savings for larger shipments that don’t quite fill a truck.
Support: A freight broker is also able to pushback on unexpected fees after delivery and help fight against unwarranted accessorial fees. Freight brokers can also help as a middleman in the claims process and grab tracking updates for you, so you don't have to spend time on the phone with customer service.

Understanding Volume LTL

Volume LTL is a service designed for shipments that are too large for standard LTL but don't require a full truckload. Volume LTL offers a cost-effective solution by allowing shippers to take advantage of unused truck space on an LTL carrier's route. This service is particularly beneficial for businesses with larger, heavier shipments that don't quite reach the threshold for a full truckload.

How Volume LTL Can Save You Money

Volume LTL allows you to ship larger quantities of goods without paying for an entire truck, making it a great option for businesses looking to optimize their freight spend. Here’s how it can help you save money:

Lower Rates for Larger Shipments: Since Volume LTL carriers are eager to fill any remaining space in their trucks, they often offer competitive rates for larger shipments.
Reduced Freight Class Impact: In standard LTL shipping, freight class plays a significant role in determining rates. With Volume LTL, the emphasis shifts towards the total weight and space occupied, which can lead to cost savings for heavier shipments.
Flexible Shipping Options: Volume LTL offers more flexibility in terms of shipment size and transit time, making it easier to find a cost-effective solution that meets your specific needs.

Partial Truckload Shipping: A Middle Ground Solution

Partial truckload shipping is another option to consider if your freight is too large for LTL but doesn’t quite require a full truckload. Partial truckload is similar to LTL in that it involves sharing truck space with other shippers, but it typically involves fewer stops and less handling, which can reduce transit times and the risk of damage.

Benefits of Partial Truckload Shipping

Cost Efficiency: By sharing the cost of the truck with other shippers, you can achieve significant savings compared to booking a full truckload.

Reduced Handling: Partial truckload shipments usually involve fewer touchpoints, which means less handling and a lower risk of damage to your goods.

Faster Transit Times: Since partial truckload shipments make fewer stops, they often arrive faster than LTL shipments.

Using Box Trucks for Partial Truckloads

Box trucks, which are smaller than standard semi-trucks, are often used for partial truckload shipping. These vehicles are ideal for shorter distances and smaller shipments that still require more space than what LTL offers. Here’s how using box trucks can save you money:

Lower Operational Costs: Box trucks are less expensive to operate than full-size trucks, which can lead to lower shipping rates.
Flexibility: Box trucks can navigate tighter spaces and make deliveries to locations that might be challenging for larger trucks, providing greater flexibility in delivery options.
Ideal for Expedited Shipments: If you need a quick turnaround, box trucks can offer faster service for partial loads, especially for regional deliveries.

Flatbed LTL Shipping: An Option for Oversized Freight

For businesses that need to ship oversized or irregularly shaped freight, flatbed LTL shipping can be a cost-effective solution. Flatbed LTL involves using a flatbed truck to transport freight that doesn’t fit inside a standard trailer.

What is Flatbed LTL?

Flatbed LTL is similar to traditional LTL shipping, but instead of using enclosed trailers, flatbed trucks are used to transport freight. This method is ideal for shipments that are too large, wide, or tall to fit inside a standard trailer, such as construction materials, machinery, or large equipment.

Advantages of Flatbed LTL Shipping

Accommodates Oversized Freight: Flatbed LTL is perfect for shipping large or irregularly shaped items that can’t be loaded into a standard trailer.

Cost Savings with Partial Flatbeds: Just like standard LTL, flatbed LTL allows you to share space with other shippers, which can lead to significant cost savings. By utilizing partial flatbeds, you only pay for the space your freight occupies.

Versatility: Flatbeds can be loaded and unloaded from the sides or top, making it easier to handle oversized freight.

Flatbed Hotshots: An Expedited Option

For urgent shipments that require expedited service, flatbed hotshots can be a viable option. Hotshot trucking involves using smaller trucks to deliver freight quickly, often over shorter distances. This service is ideal for time-sensitive deliveries that can’t wait for standard LTL or truckload shipping.

How Flatbed Hotshots Can Save You Money

Reduced Wait Times: Hotshot trucking typically involves direct routes with minimal stops, which can reduce transit times and help you meet tight deadlines.

Lower Costs for Small Loads: If your shipment is small but requires a flatbed, a hotshot service can be more cost-effective than booking a larger truck.

Avoiding Full Truckload Costs: By using a hotshot service, you can avoid the higher costs associated with booking a full truckload for a smaller shipment.

Tips for Maximizing Savings on LTL Shipping

To make the most of your LTL shipping budget, consider these additional tips:

Consolidate Shipments: Whenever possible, consolidate smaller shipments into a single larger shipment. This can reduce the number of LTL shipments you need to book and take advantage of Volume LTL or partial truckload rates.
Use Freight Class Optimization: Work with your freight broker to ensure your shipments are classified correctly. Misclassification can lead to higher rates, so it’s important to accurately assess the freight class based on density, stowability, handling, and liability.
Leverage Technology: Use freight management software to compare rates, track shipments, and optimize routes. This can help you identify the most cost-effective options and avoid unnecessary fees.
Plan Ahead: Book your shipments in advance whenever possible. Last-minute bookings can result in higher rates due to limited carrier availability.
Work with a Freight Broker: As mentioned earlier, a freight broker can help you navigate the complexities of LTL shipping, negotiate better rates, and find the most efficient shipping solutions.

Conclusion

Less Than Truckload (LTL) shipping offers a flexible and cost-effective way to move smaller freight shipments, but maximizing your savings requires a strategic approach. By understanding the different options available—such as Volume LTL, partial truckloads, box trucks, and flatbed LTL—you can make informed decisions that align with your budget and shipping needs.