LTL shipping also benefits carriers in that it lessens the strain that the driver shortage places on transportation companies. These small manufacturers wouldn’t be able to survive-or at least ship nationally-if it weren’t for the existence of LTL carriers. LTL shipping fits well into a recent global trend that sees an increasing amount of small manufacturers entering the scene. Based on this steady stream of orders, it can partner with an LTL provider and save. Let’s say our bike company gets an average of 60 orders from Minnesota and 40 from Wisconsin per week. This strategy also benefits shippers, as carriers will often provide discounts to shippers who request a steady stream of LTL loads. Why does LTL shipping exist, and what are its benefits?Īpart from keeping our favorite bicycle manufacturer in business, LTL shipping exists to iron out some of the inefficiencies and issues that face the ground freight industry.īy consolidating freight from multiple shippers, carriers can maximize their profits for a given load and decrease the average amount of unused space in its shipping containers. It’s only natural that it would look into a carrier that offers LTL shipping. The hypothetical bike company we just picked on wants to make sure it’s providing the highest level of service to its customers while maximizing its profits. If you guessed “LTL shipping,” you’re right. So how do smaller companies-or even larger ones who ship small quantities of products across the country-stay in business? Would it make sense for the company to send a truck with 18 bike frames on a mostly empty tractor trailer for a 1,000+ mile round trip journey?įactor in fuel costs, driver wages and a whole slew of other factors and you’ve got yourself a recipe for bankruptcy. Well, let’s say that on a given day, 12 bike frames were purchased online by customers from Minneapolis, and 6 frames by customers from Milwaukee. If a mid-sized bicycle manufacturer with production in Chicago wants to ship its products throughout the United States, there’s a good chance LTL shipping is involved at some point in the process. Without it, most companies that ship products to consumers would have trouble remaining solvent. LTL shipping exists to drive up efficiency and cut transportation costs. We’ll move on to discuss how both strategies can be used together for to make carriers more efficient and save shippers time and money. Today we’re going to explore FTL and LTL shipping, and the advantages and disadvantages of each method. Some of these strategies and techniques can be difficult to understand-but we’ve got you covered!įull Truckload (FTL) and Less Than Truckload (LTL) are shipping methods that carriers use to provide a high level of customized service to shippers. Increased consumer demand for 2-day, next day or even same day delivery has given rise to an era of fast technological innovation in the logistics and transportation field.Īs shippers evolve to keep up with heightened consumer expectations, the transportation and logistics industry has followed suit, developing technologies, techniques and strategies to get materials and products from point A to point B more efficiently. In today’s complex shipping and logistics world, carriers differentiate themselves from the pack through speed, efficiency, cost and communication.
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