LTL freight shipping is a significant part of the logistics sector since it connects shippers who don’t need a full trailer with carriers. LTL carriers group small quantities from many shippers into a full truckload. This makes it more economical than paying for an entire truck and offers wider service coverage than that of a parcel delivery.
LTL shipping stands in between parcel delivery and full trucking and is especially important to safe and efficient shipping. Compared to full truckload the service offers more flexibility and better accessibility as opposed to full TL that demands products to fill an entire trailer.
An LTL common carrier fulfills such shipment requests and such companies exist in great numbers which means you get more flexibility in terms of carrier choices too. LTL common carriers are carriers or third party transportation logistics that transport small quantities of shipments using trucks. They are famed for a fast and efficient way of delivering goods through offering consolidated shipping from various clients in each trailer shipment.
This blog explains everything you need to know about LTL shipping, common carriers and a lot more. Keep reading to find out.
Understanding LTL Trucking
Another form of shipping is LTL which means that it moves relatively small cargo from 150 to 15000 lbs. This is compared to full truckload (FTL) shipping, which loads a single truck or 53 feet trailer fully.
As we already know, there are two primary categories of freight shipping; less than truckload (LTL) and full truckload (FTL). The main differences include:
- Shipment Size: LTL shipments typically weigh from 150 to 15,000 pounds and may measure up to 10 pallets. Freight that is more than 15,000 pounds or more than 10 pallets are usually shipped through FTL.
- Cargo Handling: All FTL moves products from one place to another on a single trailer without any intermediate stops. This reduces handling of the cargo and the possibility of having it stolen or damaged. LTL shipments are grouped with other shipments which makes more offloads and loads than the TL shipments.
- Transit Time: FTL is often faster because the shipment isn’t waiting for other shipments to join them in a truck, or needing to make additional stops. LTL takes longer time compared to full trailer load but since the shipment is not so large, this mode is cheaper.
- Cost Savings: LTL has advantage to shippers as it provides lower prices by combining together less than full truckload cargo. This helps the carriers to optimize the space of the trucks as well as efficiency. FTL is costly but more efficient than the other means.
Benefits of LTL Shipping
Here are some of the most common benefits of LTL shipping
- Economical: There is a high degree of cost efficiency since shippers only pay for the space they use on the truck, which is cheaper than FTL.
- Consolidation: Carriers join small shipments from different shippers in a single large shipment in order to make maximum utilization of the available space.
- More frequent service: LTL freight trucks can be routed directly on the single shipment without having to wait for other shipments to complete a full truck load.
- Tracking services: Most of the common LTL carriers offer tracking service which adds to the increase in transparency of the shipping process.
- Specific services: LTL connects businesses to specific shipping and other services by providing the right shipping solutions.
Key players in the LTL trucking industry
The major LTL carriers consolidate shipments of different customers to minimize transit time, thus reducing shipping cost. Notable companies include:
- FedEx Freight
- C.H. Robinson: A major player in the US LTL market
- Old Dominion Freight Line: A major player in the US LTL market
- XPO Logistics
These common LTL carriers offer a variety of other features than just transportation such as tracking service, which provides the customer with the capability of getting updates on their LTL shipment throughout the process. For your information, the National Motor Freight Traffic Association plays an important role in standardizing national LTL shipping practices, such that shipment can be allowed to be done in the most effective and safe way throughout supply chains.
LTL Common Carriers: Who Are They?
Less than truckload or LTL common carriers are integral to the world of logistics, providing fast shipping at low costs. LTL freight shipping is a common carrier’s specialty service because they transport smaller shipments that don’t fill an entire truck. LTL carriers can optimize routes and reduce shipping costs by combining shipment from multiple customers. It’s especially helpful for freight classification and for shippers looking for the most cost effective way to move their freight while meeting their delivery deadlines.
The biggest benefit of using common carriers for less than truckload freight shipments are the flexibility they provide in transit time and specialized services which meet customer requirements. Unlike contract carriers that typically serve a single group of clients, common carriers provide access to a wider network that can be more competitive, with arms-length terms and pricing. Shippers have the flexibility to select an LTL carrier according to their particular needs, in addition to the features they want: the ability to track and to handle different classes of freight.
However, one common difference in any comparison between common carriers and contract carriers is that common carriers are governed by the National Motor Freight Traffic Association (NMFTA) which guarantees fair practices and pricing. In addition, they are a versatile option in the supply chain as they are enabled to undertake both full truckload (FTL) and less than truck load shipments.
How LTL Trucking Works
Less-than-truckload shipments essentially consolidate partial loads to create complete multi-stop truckloads. Shipping rates depend upon space utilized, the class of item to be shipped, as well as pickup and destination points.
One can deliver LTL cargo guaranteed, expedited, or regular. One can also deliver LTL cargo with additional services provided. These services include home pickup and delivery, interior pickup and delivery, and lift gate pickup and delivery. These offerings require the need for accessorial fees or extra add on charges.
Consolidation of shipment:
The process of consolidating multiple shipments into one truckload is a vital step of logistics and supply chain that must be done to increase shipping efficiency, decrease costs, and minimize the environmental impact. Here’s a breakdown of how this process typically unfolds:
- Data Collection: Carriers learn more about the shipments that must be transported including origin of shipment to where it needs to go, volume, weight and delivery timelines.
- Demand Forecasting: Assessing shipment data to identify patterns and know what is to come, so they can decide which shipments can be consolidated.
- Grouping Shipments: It involves finding shipments headed to the same location. It can include arranging delivery routes, schedules and cargo compatibility.
- Prioritization: Carriers identify the time sensitive shipments and which one can be delayed, and then make sure consolidated loads satisfy all delivery requirements.
- Cargo Compatibility: Carriers ensure that the consolidation products of similar size, weight and handling needs are compatible. This includes for example separating hazardous goods from non hazardous ones.
- Space Utilization: The ensure maximum use of the space inside the truck by means of use of software tools or by using manual calculations for secure and balanced load.
- Route Optimization: Plan about how you will deliver to consumers with the consideration of traffic patterns, road restrictions and delivery schedules.
- Carrier Selection: Select carriers appropriate to cost, reliability and capacity to haul the combined load.
Tracking Process
Tracking and managing shipment transit in LTL shipping applies technology along with communication. Each shipment is issued a unique tracking number that shippers and receivers can use to track progress on real-time online portals. Advanced tracking systems use GPS and RFID for location updates with high accuracy. Besides, the carriers optimize routes and reduce the times of transit using hub-and-spoke networks. The updates regarding the status are thus periodic to the stakeholders concerned and allow for transparency in the flow of operations. The drivers are provided with mobile devices to update the status change and/or issues, if any. This comprehensive approach enhances efficiency and reliability to improve customer satisfaction in LTL shipping operations.
Cost benefits of using LTL trucking
LTL trucking is a game changer for business, but especially for companies that don’t ship enough to fill an entire truck. Here’s why it can be a smart choice:
Shared Costs: LTL makes you share the truck space with other shipments. That just means you’re only paying for the truck space that your goods take up. Instead of paying the load fee for a whole truck, you can considerably cut transportation costs by jointing with others to pay for the load.
Lower Inventory Costs: You don’t need as much inventory if you can ship more often using LTL. It can really cut down on storage costs and diminish risk of overstocking or stocking out. So it’s about having the right product at the right time.
Flexibility: There are often multiple delivery options (i.e., schedule, routes) offered by LTL services. That flexibility also means that you’re in that sweet spot of being able to ship sooner without having to afford to pay for unnecessary expedited shipping.
Access to a Wider Network: Most LTL carriers have extensive networks that will connect you to customers in more remote areas at a fraction of the expense of a dedicated truckload shipment. Such a greater reach can expand your market, thereby increasing sales without requiring a very substantial jump in shipping costs.
Reduced Damage Risk: However, LTL carriers tend to have better handling processes at their disposal since they’re handling amounts of packages rather than just a single package. That means there was a lower risk of damage to your products during transit, which means you won’t have to pay the costs of returns and replacements.
How to Ship LTL on Seller Central
Before you learn how to ship LTL on seller central, first understand what Sellar Central actually is! Amazon Seller Central is the platform that allows sellers to manage their Amazon business, including inventory management, order processing, and shipping logistics.
Step-by-Step Guide on Setting up LTL Shipments through Seller Central
Step1: Choosing the Right LTL Carrier
Selecting the right LTL carrier can significantly impact your shipping experience. Here are a few factors to consider:
- Service Area: Ensure that the carrier services the regions you need to ship to.
- Reputation and Reliability: Research reviews and ratings of potential carriers to gauge their reliability.
- Cost: Compare quotes from multiple carriers to find the best rates. Be aware of any additional fees that may apply.
- Transit Time: Evaluate the transit times offered by different carriers to meet your delivery deadlines.
- Customer Support: Choose a carrier with good customer service, as this can be crucial for resolving any issues that arise during shipping.
Step 2: Entering shipment details and freight class
- Log in to Your Seller Central Account: Start by logging into your Seller Central account using your credentials.
- Navigate to the Inventory Section: From the main dashboard, go to the “Inventory” tab and select “Manage Inventory.”
- Create a Shipment: Click on the “Send/Replenish Inventory” button to initiate the shipment creation process.
- Select Packaging Type: Now select “Case packed products” as it will help reduce the chances of having your product(s) sent back and forth between fulfillment centers.
- Select the Products: Choose the products you wish to ship and enter the quantity you plan to send.
- Choose Your Shipment Mode: When prompted, select “LTL” as your shipment method. This option is typically available when your shipment exceeds a certain weight or volume threshold.
- Review Shipping Preferences: Review your shipping preferences and ensure you select the right shipment destination, which should align with the Amazon fulfillment center you are shipping to.
When setting up your LTL shipment, you will need to enter specific shipment details:
- Shipment Dimensions and Weight: Accurately input the dimensions and weight of the shipment to avoid surcharges.
- Freight Class: Determine the correct freight class for your items. Freight classes categorize products based on their density, handling, and liability. Use the National Motor Freight Classification (NMFC) system to identify the appropriate class for your goods.
- Packaging Specifications: Note any specifics regarding how your products are packaged, as this can affect the freight class and shipping cost.
Preparing your inventory for LTL shipping
Proper preparation of your inventory is crucial to ensure a smooth shipping process. Follow these tips:
- Labeling: Make sure all the boxes are labeled clearly with their contents, destination and any instructions regarding how to handle them. To avoid confusion and to be easily identifiable, use a consistent labeling system. To say the products are perishable, and to help keep it organised, consider colour coded labels for different categories of products, and dates for perishable goods.
- Packing: When packing, use materials that should cushion fragile items byt using bubble wrap, packing peanuts, or crumpled paper. Make sure to pack weight evenly without over packing so that damage of your items during transit is prevented. Tape seal boxes with strong (packing) tape and join the seams for added strength.
- Inventory: Make an inventory list in regard to the labeled boxes. This list will help you move items to keep track of them and not forgotten to leave the item behind or it disappeared. List what is included in the box; what the box number is and where it is to be stored at the new location.
- Safety: Lifting boxes correctly—bend your knees, and keep your back straight—prioritize safety. When moving heavy things, they suggest to use dolls or asking for help. Make sure there are no trip hazards.
- Communication: Make sure to keep open communication lines with everyone that is involved in the moving process. Make sure that all team members know what their role is and what their responsibility. If the movers you’re hiring have a copy of the inventory and any special orders are needed if you’re handling certain items.
Best Practices for LTL Shipping
To ensure efficient and hassle-free Less Than Truckload (LTL) shipping, adhere to these key best practices:
Proper Packaging Techniques: Choose sturdy, standard industry material for your pallets, crates or boxes. Check that items are securely in place to prevent damage in transit. If you have irregular-shaped or fragile items to package consider custom packaging solutions.
Accurate Freight Classification: Get first hand information on your shipment’s freight class so you don’t get charged incorrectly and experience carrier problems. If unsure, consult the National Motor Freight Classification (NMFC) guide or seek expert advice.
Precise Labeling: Make sure to label shipments on easily visible sides of pallets or crates. Include essential details such as:
- Accurate ship and bill to addresses
- Actual clear handling instructions (for example “Fragile” or “This Side Up”)
- Streamlined processing with legible barcode scanning information.
Challenges and Solutions in LTL Shipping
Less than Truckload (LTL) trucking presents unique challenges that can affect timely and secure delivery.
Common Issues:
- Delays: Barriers to capacity constraints and inefficient routing
- Damage: Inadequate packaging and multiple handling points
- Misclassification: Pricing errors due to incorrect freight classification
Mitigating Risks
- Optimize Routing: Use technology to optimize route planning
- Enhance Packaging: Invest in sturdy, custom packaging solutions.
- Accurate Classification: Have access to NMFC guides or consult logistics experts.
The Key to Success
The most important part is selecting a Reliable Carrier. Look for partners offering:
- Track and see in real time
- A proven on time delivery record
- Carrier selection tools ensure robustness and making decisions.
Bonus: Issue resolution through strong communication channels. By choosing an honest carrier, shippers can overcome the challenges of LTL, while minimizing cost and maintaining a logistics operation.
Cost Factors in LTL Trucking
Less-than-Truckload (LTL) shipping rates are influenced by several key factors:
- Weight, Dimensions, and Density: LTL rates are defined as the primary determinants of them. The freight class is determined by its weight, size and density.
- For example, the space saved by a Class 5,000 lb shipment with a density of 10 lbs/cubic foot (as in cotton) is Class 50; the space saved by a Class 5,000 lb shipment with a density of 60 lbs/cubic foot (as in steel) is Class 150, the density of your shipment and your costs.
- Distance: LTL (less-than truckload) rates are characterized by distance, although longer hauls tend to be more expensive. The final price is dependent on the miles traveled and the zone of destination (rural, conventional, etc).
- Accessorial Charges: These fees include fees for a liftgate, inside delivery, or residential delivery, services beyond standard transportation. Unloading a shipment at a residence might have a $75 fee, or using a liftgate might increase the total cost by $50 per load, for example.
How to compare rates between different LTL carriers?
To get the best package you’ll need to compare rates from various LTL carriers, giving them detailed information about your shipment. Leading common LTL carriers provide online quote tools. You need to compare rate, transit time, and service level to determine what will suit your needs best.
Conclusion
One of the many advantages offered by LTL trucking is cost savings, faster shipping and flexibility. In order to efficiently ship LTL on Seller Central, you have to understand and optimize weight, distance and accessorial charges. Ask for quotes from some of the most common carriers to understand the pricing better. You can implement strategies such as LTL freight consolidation; optimize packaging, and use technology to cut costs. When you do this, you are claiming the power of LTL trucking to help your supply chain run more smoothly.
FAQs: LTL Trucking and Seller Central
What is LTL trucking, and how does it work?
This consolidation of freight combines several smaller shipments of different shippers together on one truck to enable a full truckload economically. There are various types of cross-dock sorting of shipment among terminals and often move together in a similar direction.
What are common carriers in LTL shipping?
UPS Freight, XPO Logistics, FedEx Freight, Estes Express Worldwide, and YRC Freight are some standard carriers in less than truckload shipping.
How do I ship LTL on Amazon Seller Central?
Amazon has some requirements to support any LTL carrier. You will have to:
- Get Quotes: Obtain quotes from LTL carriers or 3PLs based on your shipment’s weight, dimensions, and destination.
- Manually Enter Shipping Cost: In Seller Central, enter the shipping cost manually under “Manage Orders” > “Order Details” > “Shipping Charges.”
- Provide Tracking Number: Once shipped, input the carrier’s tracking number in Seller Central for order tracking.
What are the advantages of using LTL for smaller shipments?
Cost savings, flexibility, and expedited shipping compared to parcel carriers. LTL is ideal for shipments too large for a parcel but not filling an entire truck.
How are LTL shipping costs calculated?
Costs are determined by weight, dimensions, distance, fuel surcharges, accessorial fees, and freight class.
What are the common mistakes to avoid when shipping LTL?
Not accurately describing freight, not comparing rates, not optimizing packaging, and not choosing the right carrier.
How can I track my LTL shipment?
Track using the carrier’s website or a 3PL’s tracking platform. Some carriers offer real-time tracking.
What items are suitable for LTL shipping?
You can ship palletized or crated items, equipment, machinery, and other large or heavy goods.
Can I use LTL for international shipping?
Some LTL carriers offer international services, but it’s often more complex and costly than ocean or air freight.
What should I do if my LTL shipment is delayed or damaged?
Contact the carrier immediately. Document damages with photos, and file a claim if necessary. Keep records for up to a year.
