Over the last 10 years in my brokerage I have seen many different freight modes, and one of my favorites to move has always been LTL Freight.
Less than truckload freight (LTL) is the transport of smaller quantities of cargo that don’t require the use of a full dry van trailer. LTL freight is used for any cargo that is between 150 to 15000 pounds.
Since we are working with smaller quantities, LTL freight moves differently than other freight modes, so in this article, we are going to cover everything you need to know to confidently start moving LTL freight for your customers.
How does LTL Freight Work?
LTL Freight works differently than most other freight modes from the perspective of both the shippers and the carriers.
LTL freight works by consolidating freight from multiple shippers. Rather than a single shipper renting a full dryvan, multiple shippers split the cost of moving their freight together. An LTL carrier will take the different shipments to various consolidation centers in order to ship them individually to their final destination.
For a practical example, the steps of an LTL shipment might look like this:
- A Shipper will request LTL rates from common carriers for their LTL shipment. Once they decide on a carrier they will execute a booking.
- The LTL carrier will pick up the shipper’s freight along with multiple other shipments in the same general area.
- The carrier will then bring this freight back to a local terminal where it is sorted and dispatched to the next leg of the journey. This is usually another freight terminal in close proximity to the final destination.
- Once the freight arrives at the final terminal, it is dispatched to be delivered.
You might be wondering, with all of those extra steps, what are the benefits of shipping freight via LTL
Benefits of Shipping LTL Freight
- Reduced costs – Since LTL shipments are smaller and lighter, the cost of the entire shipment is much less than the cost of shipping the same freight in a full truckload.
- Security – LTL shipments are generally prepared to withstand excess handling at various sorting terminals. In addition, LTL carriers are experts in the safe handling of various different freight. This means that in general, shipping via LTL can be safer than other modes.
- Personalized Shipping Options – LTL carriers offer various other services as add on’s and upgrades. Services such as inside delivery, and residential delivery’s that make LTL accessible to more shippers.
- Tracking – Unlike truckload carriers who typically do their tracking with phone calls and emails, LTL carriers have interactive online portals that provide live updates with accurate shipping information for each order.
Of course, with all of the good, there is also a few drawbacks that come with shipping LTL freight.
Cons of Shipping LTL Freight
- Unpredictable Timelines – due to the complex nature of an LTL network, it is difficult to estimate the transit time of LTL shipments.
- Rates – Like anything, rates are due to supply and demand. Peak seasons around the holidays and other high volume periods can cause prices to fluctuate drastically.
- Claims – With more handling, comes the increased probability of claims. Fortunately, LTL carriers are very well versed in handling cargo claims.
What carriers Haul LTL Freight?
LTL freight is hauled by 2 types of carriers that you will encounter as a freight broker.
- Common carriers – Common carriers are large carriers with huge networks of trucks across the domestic US. They service just about every region and are able to provide cost efficient and quality service to anywhere across the US. Some of the most popular LTL common carriers are
– Old Dominion
– Estes Express
– Forward Air
– Ward Trucking
– A Duie Pyle
– YRC - Partial Carriers – Some regular carriers will fill up their trailers with partial shipments in order to return to their base of operation with some freight in their truck. These carriers do not provide the same benefits as common LTL carriers and from experience I will tell you that I would not recommend you go this route to book your LTL freight.
Every experience I have had with a partial carrier off of a load board has been unreliable and caused major problems with my customers. I recommend you have a thorough carrier vetting process or avoid doing this altogether.
What are LTL Accessorial Charges?
Like most freight modes, we discussed that with LTL freight, there are certain upgrades that can be added to your shipments in order to make things more suitable for the end client. These are known as accessorial charges and they are added to shipments to account for anything slightly out of the ordinary. Some of the most common LTL accessorial charges include:
Inside delivery – This is when a driver has to physically bring the freight inside the delivery location.
Hazmat Charge – This accounts for the transport of hazardous materials.
Lift Gate – If a delivery or pickup location is not dock high, a lift gate will be utilized for this delivery.
Limited Access Delivery Charge – If a location is particularly difficult to access, a carrier might assess this charge to compensate for the extra work required to pickup or deliver.
Appt Surcharge – Some carriers will charge for the act of making a delivery appointment
Dry Run – If a carrier arrives at a location but they cannot pickup or be unloaded for any particular reason, the carrier will assess a charge known as a dry run.
Reweigh Fee – If freight is given to an LTL carrier but weighs a different amount than what is reported, the carrier will charge a reweigh fee for the fact that they had to reweigh the freight to confirm the weight.
Final Thoughts
All freight brokers should become familiar with the process of LTL freight as well as the in’s and outs of how to move it. It is a valuable shipping mode to offer customers because of the amazing cost savings they will receive from moving smaller shipments. In order to break into this freight mode, you should invest some time speaking with people working at the large common carriers in order to set up accounts and receive preferential rates that you can pass along to your customers.
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