by Marketing | Jul 19, 2017 | News
Shipping freight may seem like a very complex process due to the number of options available. It’s important to understand the differences between Full Truckload (FTL) shipping and Less Than Truckload (LTL) shipping because they are two of the most commonly used transportation options within North America. Shippers must consider size, speed, and price when deciding between a FTL versus LTL. Here are the main differences between FTL and LTL shipments to help you decide which shipping method works best for you.
The main differences between FTL and LTL shipments can be broken down into four categories:
Size
The first thing you must take into consideration when shipping freight is the size. The names Full Truckload and Less Than Truckload are self-explanatory and mean exactly what they say. LTL shipments are smaller shipments typically ranging from 100 to 5,000 pounds. These smaller shipments will not fill an entire truck, leaving space for other small shipments. On the other hand, FTL shipments fill most to all of an entire truck and tend to be much larger, often weighing 20,000 pounds or more. Shipments that weigh between approximately 5,000 and 10,000 pounds can sometimes move either LTL or FTL. When such shipments move LTL, they are often referred to as “volume LTL” shipments; and when they move FTL, they are often referred as “partial TL” shipments (read more about Volume LTL and Partial TL here).
Price
Since LTL shipments are smaller and leave room for other shipments, they are cheaper because you will only pay for the space that you use. FTL shipments use most of the entire truck and cost more because you are paying for more space in the truck. The decision between choosing a FTL or LTL is crucial because if you choose the wrong option, you may end up paying for space that you aren’t even using.
Time
If you are pressed on time and need to have something shipped quickly, FTL may be the way to go. Since LTL shipments involve more than just your shipment, they often require multiple stops and transfers before they reach the final destination. Typically, FTL shipments pick up and deliver on the same truck leading to a quicker delivery time.
Handling
Along with how quickly you need a shipment to go out, you must also consider how delicate or high-risk the shipment is. With FTL shipping, your shipment will stay on the same truck and will not be transferred anywhere else. This creates less risk of damaged or missing items when shipping FTL. On the other hand, LTL shipments may switch trucks or be transferred multiple times before delivery, increasing the risk of damaged or missing items.
Choosing the correct shipping method is crucial for saving time and money for your company. If you have LTL or FTL shipping needs, then look no further than Logistics Plus! Contact us today.
by logisticsplus | Nov 17, 2016 | News
U.S. Holiday schedules for Logistics Plus and ground carriers
As the holidays approach, we want to help you avoid any unnecessary shipping delays over the next few weeks. Shown below is the holiday schedule for U.S.-based Logistics Plus offices and warehouse locations, as well as the top U.S. ground (parcel and LTL) carriers. If you have any special transportation needs, or expedited shipping requests, please contact Logistics Plus in advance of the office closings noted below. You can use the Logistics Plus online global directory to find any of our people or our locations. You can also reach our North American freight division by calling 1.866.335.7623 or emailing us at nadops@logisticsplus.com.
Click image to see a slightly larger version of table.
by logisticsplus | Nov 16, 2016 | News
Wondering whether your domestic freight shipment should move via parcel, less-than-truckload (LTL), or full-truckload (FTL) carrier? Here’s a quick cheat-sheet with some PROs and CONs to each of these ground transportation modes.
Parcel Shipping: Shipments under 150 pounds and shipped in cartons (less than 108 inches long and 67 inches wide), rather than on a pallet, are often moved via Parcel shipping with carriers such as USPS, UPS, FedEx or regional courier services.
- PROS: Fast service, many delivery options, readily available, lower shipping costs on smaller shipments.
- CONS: More chance of being lost or damaged, lower carrier liability limits per pound, few carrier options.
- Standard Less-Than-Truckload (LTL) Shipping: Shipments between 150 and 5,000 pounds are generally better moved using standard LTL carrier pricing with LTL carriers such as FedEx Freight, UPS Freight, YRC Freight, or regional freight carriers.
- PROS: Relatively fast service, good availability, fewer damages, good with B2B deliveries, higher carrier liability limits pound.
- CONS: Complex pricing structure, higher shipping costs, not always suitable for non-palletized freight, not always great with B2C deliveries, minimal carrier options.
Volume Less-Than-Truckload (LTL) Shipping: Shipments between 5,000 and 10,000 pounds, or taking up more than 6 pallet spaces, are often moved more cost-effectively with a “volume” or “spot” quote. In these situations, the carrier will analyze the weight and dimensions of the shipment and provide a competitive “all-in” rate quote.
- PROS: All of the above, plus this approach will generally produce a lower price than standard LTL shipping rates.
- CONS: Often predicated on when or where LTL carrier has equipment available and need for more freight volume, getting quotes takes more time.
Partial Truckload Shipping: Shipments between 10,000 and 20,000 pounds, or taking up more than 10 pallet spaces, are often moved more cost-effectively as a partial truckload. In these situations, the truckload carrier will analyze the weight and dimensions of the shipment and provide a competitive “all-in” rate quote.
- PROS: Generally produces a lower pricing than standard or volume LTL shipping rates, since shipment only takes up part of the trailer, carrier can sell remaining capacity to another customer to share the costs, many more carrier options.
- CONS: Finding right carrier with capacity is often difficult, predicated on when or where carrier has equipment available, getting quotes takes more time, must vet carrier to ensure safe and reliable.
Full Truckload (FTL) Shipping: Shipments over 20,000 pounds are often moved more cost-effectively as a full truckload. In these situations, the carrier will analyze the weight and dimensions of the shipment and provide a competitive “all-in” rate quote.
- PROS: Generally the most cost-effective way to ship per pound, less susceptible to damages because freight is normally moved door-to-door on one trailer (no re-handlings), many more carrier options.
- CONS: Finding right carrier with capacity is often difficult, predicated on when or where carrier has equipment available, getting quotes take more time, must vet carrier to ensure safe and reliable.
Need help deciding how best to ship your freight the most using the most cost-effective ground transportation mode? Let Logistics Plus help you with a risk-free freight analysis or freight quote.
by logisticsplus | Oct 18, 2016 | News
The leaves are turning, temperatures are dropping, and the peak Fall freight shipping season is here once again. Manufacturers are working to ship year-end orders, distributors are managing inventory and fulfilling shipments, and retailers are stocking shelves for the holidays. No matter where your business lies within the supply chain, finding affordable and reliable freight capacity this time of year is critical. To help get you through the season, here are 8 cost-saving freight shipping tips for you to consider:
- Avoid surprises by knowing as much about your shipment as your carrier does. Carriers use dimensioning machines and forklift scales that measure and weigh every pallet. If your documentation doesn’t match their calculations, you’re charged an administrative fee to make the correction – plus your freight charges may be adjusted higher if it is heavier or takes up more space than expected. So know your proper freight classifications, and be sure to note specific National Motor Freight Classification (NMFC) codes on your bill of lading.
- Focus on the net cost. Discounts can be misleading. When shippers get a big discount from a carrier, they often think it’s a great deal; but there are so many other factors to consider, including the fact that “list price” base rates vary from carrier to carrier and from lane to lane. So an 80% discount off one carrier’s base rates may actually be more expensive than, say, a 75% discount from another base rate schedule. That’s why it is important to focus on only the total net cost, and not the discount (as we do here at Logistics Plus).
- Know when to consolidate. When shipping LTL freight shipments (those weighing between 150 and 10,000 pounds), consider consolidating orders to create a full truckload. LTL rates are usually much higher than truckload rates. Additionally, you should monitor your shipping patterns. If you find you are shipping multiple LTL shipments to the same customer within a close date range, consider consolidating those smaller loads into larger ones to reduce your overall expense.
- Understand the value of your product and carrier liability limits. Every booked freight shipment comes with limited liability coverage. The amount of coverage is determined by the carrier and based upon the commodity type. It covers a certain dollar amount per pound of freight. In some situations, the included liability coverage may be less than the value of the shipped goods. If so, this is where additional freight insurance may be purchased. The extra freight insurance covers the shipped items and the cost of freight shipping. It is redeemable under all types of loss with no proof of fault required. Unlike the limited liability coverage, with added insurance, there are no exclusions for packaging errors or severe weather.
- Be realistic about the service level you need. If your customer expects delivery in three days, you don’t need to overpay to deliver their shipment in one day. Additionally, don’t use a national freight carrier to deliver short-distance shipments, or a regional carrier to deliver coast-to-coast shipments. Regional carriers are much more cost-effective for regional shipments, while national carriers will provide the best “long-haul” service with minimal handling. When you do need expedited freight service, knowing your carriers and options can make a big difference on the final price, i.e., expedited ground shipping is going to cost much less than expedited air.
- Pay attention to your packaging. Shrinkwrap your freight to your pallet to avoid it from sliding or shifting during transit. This will minimize costly damages and delays. Furthermore, don’t use more packaging than is required for your shipment. Over-packaging can create additional weight or “dead air,” both of which will add to your shipping costs.
- Don’t forget about your inbound shipping. Oftentimes companies will ignore cost-saving opportunities with their inbound shipping because their vendors pay for the shipping on these orders. The reality, however, is that nothing ships for free. Many vendors will use a “prepay-and-add” approach to make additional profit on freight shipping. A thorough analysis of your vendor invoices might provide cost-saving opportunities if you bring the inbound shipping and routing under your own control.
- Know how much time you’re spending on freight shipping. A lot of valuable time and resources can go into freight shipping. Finding scarce truck capacity, sourcing the right carriers, negotiating agreements, obtaining multiple carrier quotes, tracking shipments, auditing freight invoices, dealing with claims – these all contribute to your overall logistics expenses. Rather than dedicating internal, fixed resources to such activities, you may consider working with a reputable third-party logistics (3PL) company instead. A good 3P, like Logistics Plus, will be able to leverage all of its business to negotiate better rates with more carriers on your behalf. They will also have a transportation management system (TMS) technology that supports multiple carrier, service, and mode options. They’ll be able to help track shipments, audit freight invoices, and consolidate reporting. Lastly, they can scale their resources to appropriately address the fluctuations in your supply chain.
If you’re ready to take #8 of these freight shipping tips to heart, the freight experts at Logistics Plus stand ready to help. Use any of the buttons below to get started.
by logisticsplus | Sep 16, 2016 | News
What is volume LTL shipping? In general industry terms, a volume shipment (sometimes referred to as a partial truckload) typically weighs more than 5,000 pounds, is six (6) pallets or more or it takes up 12 to 32 linear feet of trailer space. As with most consumer or business purchases, buying the things you need in larger quantities is a simple way to save money. So, just as you’d expect to get a better deal on that case of bottled water at your local warehouse store, the same is true for freight. Ship a larger shipment and spend less than shipping multiple, smaller shipments. Unlike standard LTL shipments, where the rates and discounts are already pre-established, volume LTL shipments are generally “spot quoted” and can often help a carrier fill density in a “backhaul” lane where they need the additional business. This will generally result in lower freight charges than what might have been otherwise charged using standard LTL rates.
What information will you need to provide to get a volume LTL shipping rate? Like any standard LTL shipment, you’ll need the origin and destination zip codes, total weight, and freight classification (or a detailed description of your commodity). You’ll also need to provide the pallet count, shipment dimensions, and the date you’re planning on shipping. Quick and competitive access to carriers’ volume LTL rates are one of the many reasons to use an experienced freight management company (like Logistics Plus). They can save you money on your volume LTL shipping because they have ready access to many carriers that will provide the best volume rates, and they often know what type of freight carriers are looking to secure. Keep in mind, because volume quotes are spot-quoted, they are not automatic. They can often take an hour or so to obtain, so plan ahead.
Don’t be shy in requesting volume LTL and partial truckload shipments when you have the opportunity – they can help you save on your overall shipping costs! If you’ve got a shipment over 5,000 pounds or more than six pallet positions, click the button below and let the Logistics Plus North American freight experts go to work finding the best rates for you!
