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Understanding LTL: Less Than Truckload Shipping Basics

Jennifer Ross by Jennifer Ross
July 17, 2024
in Business
Reading Time: 5 mins read

Companies might need items shipped to their location but don’t have enough to fill a truck. There is no need to worry in this situation because the company can take advantage of less-than-load shipping.

LTL less than truckload shipping offers several benefits. The company won’t need to rent an entire trailer, which can be cost-prohibitive. There is more flexibility regarding shipping times, and the organization won’t need to send small quantities using other methods. What should an organization know about this option before deciding whether it suits its needs?

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Pallet Shipping

Less-than-truckload shipments are usually sent on pallets. The pallet provides stability and makes loading and unloading items easy. Like-products remain together, and manufacturers now make pallets from sustainable materials. This benefits the planet, and the pallets may be lighter than their wood counterparts.

Pallet sizes vary from 2’x2′ to 4’x6′. Each pallet has slats, so a forklift can pick it up and move it. Pallets make LTL shipping profitable because the pallets can easily be loaded and unloaded. They often move multiple times during transport before arriving at their destination.

Truck Options

Less-than-truckload shipments are usually carried by one of two types of trucks. Pup trucks are 26′ to 28′ long. They are narrow and light, so shippers typically use them for local pickups and deliveries. They can easily maneuver through crowded city streets and fit into tight parking spaces.

Dry vans, in contrast, carry much larger loads. They run between 48′ and 53′ and can carry up to 45,000 pounds in one trip. However, their size makes them difficult to maneuver, so they are more commonly seen on highways and interstates rather than in cities.

Drop-Off Points

Terminals serve as drop-off points for various shipments. A trucker might deliver freight to one drop-off location, where it can be loaded onto another truck to move closer to the destination. Terminals are an essential part of the LTL shipping infrastructure because they allow for the efficient movement of small shipments. Different shipments are combined on one truck at terminals to move them where they need to go. When they arrive at their destination, they are moved to pup trucks for delivery.

Freight Pricing

Companies might worry about the cost of LTL shipping. Many factors affect how much they will pay for the service. Size and volume play a role, as the goods occupy space in the various trucks that transport them. Ask various companies for a list of their fees based on freight requirements. However, some companies charge by the pallet or use another pricing structure. Speak to several providers to see how their prices compare.

The National Motor Freight Traffic Association (NMFTA) assigns classification numbers to freight, regardless of how the freight is shipped. Lower class numbers cost less to ship, as the system considers the size and value of an item before providing this number. The system also considers the item’s density and how difficult it will be to ship and deliver.

Higher shipping fees apply to high-value and fragile items. Consumer electronics, for example, cost more to ship than building materials. However, a shipper might combine items from different classes into one class with the help of a Freight of All Kinds (FAK) agreement.

Companies might find they benefit from using multiple LTL carriers. The only way to know if they will is to explore all options. However, one carrier may meet the needs of the company. It’s all a matter of researching the options to find those that work best for each organization.

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Jennifer Ross

Jennifer Ross

Jennifer has been a part of the journey ever since The American Reporter started. As a strong learner and passionate writer, she contributes her editing skills for the news agency. She also jots down intellectual pieces from health category.

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