Guide to LTL FreightA shipper’s secret weapon to supercharge their supply chain

March 2019, V1.0

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Contents

The Future of LTL Freight 03

How Does LTL Work? 04

Parcel Vs. LTL Vs. Volume LTL 05

Why Do Shippers Choose LTL? 06

Transit Times & LTL 07

How LTL Pricing is Calculated 08

How LTL Freight Should Be Prepared 10

Delivering Delight With LTL 12

The Smartest Way to Ship 13

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The Future of LTL FreightDo you need to ship freight, but your products won’t necessarily fill up an entire truck?

Why pay for the capacity of an entire truckload of freight if you don’t need it?

Welcome to LTL.

Less-than-truckload shipping is a shipper’s secret weapon to supercharge their supply chain and delight end customers.

LTL shipping exists so that products from different sources can share a truck’s capacity to optimize the speed of getting goods shipped and reduce spending.

Tech will be the key to ensuring your supply chain is optimized, efficient, and serves as your competitive advantage.

Knowing the best practices in LTL will be your silver bullet to conquering the challenges with this mode of shipping. We wrote this whitepaper for shippers in mind who have never shipped LTL and those who have but want to improve their workflows.

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LTL hub

LTL hub

LTL hub

How Does LTL Work?Transporting via LTL includes more steps than your standard full-truckload shipment. However, this doesn’t mean it’s too hard to master, not worth the time or investment, or difficult to find the right carrier to haul your LTL freight.

There are hundreds of carriers moving LTL freight at any given time. They load a trailer with several small shipments that are all trying to transport to a similar region.

Less-than-truckload carriers utilize a hub-and-spoke operation when it comes to moving freight. This means your freight may be moved to a different trailer at some point on its journey.

While that may seem complicated, the quoting and booking process is ultra-simplified. LTL freight quotes can be generated instantly based on the item and shipping destination information.

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LTL Ecosystem

LTL carrier picks up orders from its region and transports the load to the service center or hub.

Carriers reload freight to transport to the next hub, heading closer to the final destination.

Freight is loaded and heads to the delivery point.

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Parcel Vs. LTL Vs. Volume LTLWhen deciding if LTL is right for you, you’re most likely thinking of these four modes of shipping: parcel, LTL, volume LTL, and FTL.

When you consider the item(s) you want to ship, which mode should you choose? Here’s a quick rundown of their main differences. Please note, every shipment is unique, and this chart doesn’t account for special situations.

Unsure of what mode of freight your shipment requires? Email us at LTL@Shipwell.com for help!

Parcel LTL Volume LTL

Size

Varies across parcel carriers. Typically around 165” in length and girth, or up to 108” in length

Should occupy less than 12 linear feet, less than 6 pallets.

Takes up 12-32 linear feet of trailer space, 6 or more pallets

Weight Less than 150 lbs 151-18,000 lbs 5,000+ lbs

Volume LTL: The Grey Area Between LTL and FTLVolume LTL is when your freight takes up more space in the truck’s trailer compared to LTL, but is still not yet considered full truckload. This type of freight is also more likely to stay on a single truck during its journey, experiencing less handling through transit.

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Why Do Shippers Choose LTL?

CostLTL freight shipping compared to booking your freight as a full truckload is a major cost-savings to the shipper.

AccessorialsLTL carriers tend to offer accessorial services to shippers that are not available with FTL. This might include things like:

• Liftgate service

• Residential pickup or delivery

• Pickup or delivery

EfficiencySay for instance you’re running regular FTL shipments of your freight. However, to make it an FTL shipment, you’re holding onto goods or products for a longer time to build up the quantity it takes to fill up a truck. With LTL, you can ship however many goods as you’d like at a faster cadence.

Environmentally FriendlyJust like a carpool, sharing your freight shipment with other goods will save on fuel and emissions.

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Transit Times & LTLSetting expectations at the forefront of your freight shipment is key, especially with LTL shipping.

Did you know all LTL pickup and transit times are estimated? This is different than shipping FTL.

LTL carriers are unique in that they do not work on weekends or holidays. As with all freight, weather delays and road conditions must be factored in when deciding when your freight needs to reach its final destination.

Estimated transit for LTL is an industry standard, but there are also methods in which to ensure your freight arrives on time.

Pickups are also estimated. When you schedule a pickup for LTL, your pickup time will not be guaranteed.

Many carriers offer guaranteed shipment services if your freight must arrive on a particular date. This can come at an extra cost, but is worth considering when booking your LTL freight..

What’s key is having full transparency with your brokers and carriers when your freight is in transit on an LTL truck.

Open communication and real-time tracking on a truck’s location will aid in knowing exactly where your freight is.

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How LTL Pricing is CalculatedOne of the best parts about booking LTL freight is the instant quoting. By knowing details about where your freight is going, the weight and dimensions, and any special services, carriers can provide instant quotes on any LTL shipment.

But what are the elements that will impact the cost to move your LTL? Read on to learn about some of the biggest pricing factors that go into LTL quotes.

WeightThe heavier your LTL shipment is, the less it will cost to ship per pound. Smaller, lighter shipments tend to be more fragile and prone to damage, thus extra care goes into factoring the price of your shipment. Shippers should invest in a scale to accurately weigh their freight before pickup, and take pictures of the readout if they are shipping regularly.

DensityYour freight’s density will influence its freight class (more on that below). It’s the space your freight occupies and is determined by dividing the shipment’s weight by volume. Many calculators and solutions (like Shipwell!) will automatically calculate density for you.

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How LTL Pricing is Calculated Freight ClassesFreight classes are established by the National Motor Freight Traffic Association (NMFTA). As you gather the information about your shipment, freight classes will be applied to classify it. Classes pull in considerations from density, value, stow-ability, handling, and liability. The lower freight class your shipment is, the cheaper the rate. Lower freight classes consist of items that tend to be dense. Classes are designed to provide uniformity and standardization for the entire logistics supply chain in America.

DistanceFuel, driver, and equipment costs increase the longer your shipment needs to travel. Be prepared for higher costs when shipping over a long distance versus a shorter transit.

Optional Add-on ChargesAccessorialsYour freight could require special services called accessorials. Some examples are:

InsuranceAdding insurance to your LTL is a great way to protect yourself against loss or damage of your goods. If your goods are fragile or of high value, consider adding our optional insurance to your shipment. LTL carriers normally offer limited liability insurance — they only cover a certain cost per pound based on the freight class, typically less than $5 per pound.

• Convention pickup or delivery

• Inside pickup or delivery

• Liftgate pickup or delivery

• Limited access pickup or delivery

• Residential pickup or delivery

• Construction site pickup or delivery

• Delivery appointment

• Sort delivery

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How LTL Freight Should Be PreparedEnsuring safe and intact delivery of your LTL is key in ensuring end-customer delight.

As we’ve discussed, your LTL freight is likely to change trucks multiple times on its journey. That means getting it packaged correctly is essential so that items remain undamaged by the time they reach their final destination.

Plus, you want to think about protecting your items on their journey from shock, vibration, compression, and natural elements like temperature.

In addition, properly packing your freight will help you ensure you meet National Motor Freight Classification (NMFC) guidelines and the minimum packaging requirements. Dealing with claims on damaged goods can be costly and time-consuming — but it’s easy to help avoid it!

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How LTL Freight Should Be PreparedCorrectly Secure Your Freight to Pallets or Crates

After your freight is securely packaged, be sure to label every pallet or crate with all necessary information to prevent separation, loss, and damage. You’ll want to have the labels on your freight facing in a way the forklift driver can see them. On labels, include:

• PRO numbers and addresses

• Hazardous materials

• Numbered handling pieces (item X of X)

• Labels on or near both ends of your freight is longer than 96 inches

Include the Most Up-to-Date Bill of Lading (BOL)When using Shipwell, we’ll generate BOLs for you! Your BOL should have these details defined:

• Number of pallets or pieces being shipped

• Shipment descriptions and dimensions

• NMFC code

• Weight of each unit

What is a Bill of Lading (BOL)?A BOL will travel with your freight. This document is a legally binding contract between you and the carrier to ensure your freight is delivered and meets expectations agreed upon by all parties.

Pallets Crates

Stack boxes on top of pallets Use crating if necessary

Secure using tie sheets and corner board Use cushioning and bracing inside the crate

Use straps to prevent further movement Position diagonal panels to increase strength

Wrap boxes down to the pallet in a stretch film

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Delivering Delight With LTL

Using our automated, cloud-based platform, shippers have the tools at their disposal to instantly receive LTL rates, track shipments in real-time, and deliver delight to customers.

Get full customer support on every shipment by leveraging our freight experts to ensure your LTL is shipped without a hitch.

Shipwell expanded its regional LTL carrier network to better meet shipper needs and get your LTL freight moving faster than ever. Plus, Shipwell also:

• Optimized rate quoting speeds in the Shipwell platform

• Automated density, linear footage, and estimated freight class calculations

• Added instant volume LTL quoting plus a full coverage insurance offering

• Implemented the ability to save addresses and products in the platform

At Shipwell, we believe any business can ship like Amazon.

That’s why we built award-winning, smart solutions for freight.

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Let Shipwell make LTL your competitive advantage• Leverage a cloud-based, automated freight platform

• Get instant LTL quotes from hundreds of carriers in real-time

• Import your existing LTL rates

• Book and track freight all in one platform

• Utilize automated tools to optimize your logistics processes

• Message between carriers and 3PLs

• View detailed analytics to identify broken links in your supply chain

• Set up admin privileges for your entire team

• Partner with Shipwell’s Managed Services team for full support on every load

Shipwell: The Smartest Way To Ship

Start Shipping LTL with ShipwellLearn more at Shipwell.com/LTL

LTL@Shipwell.com512-333-0898