Using LTL shipping, each party is paying part of the overhead, making the price paid by each party significantly lower than other freight shipping methods. One of the biggest benefits of LTL is sharing space and shipping costs with other customers. It really depends on what is being shipped, how quickly it has to get there and how much it costs. Just like any other shipping method, LTL has both benefits and drawbacks. With this understanding of LTL, let us have a look at the pros and cons of this particular freight shipping method. Liability – the chances a shipment will be damaged or cause damage to a third partyĪll these parameters must be checked to make sure the shipment has the proper freight class for LTL shipping and how it affects pricing.Handling – the amount and difficulty of transfers, loading and unloading.Stowability – the amount of space required to show the shipment.Density – the weight per unit of volume.Freight class, or National Motor Freight Classification (NMFC), is a standardized way of classifying LTL freight shipments based on certain characteristics that all figure into which shipping method can be used and the final shipping cost.īesides sheer weight, the freight class for truckload shipments is determined by additional factors such as: Since these shipments use less than the entire truck, the free space is sold to other parties resulting in a single shipment shared by two or more customers. LTL shipping refers to those smaller lots which are aggregated until it equals or is a little less than a full truckload. LTL shipping literally refers to “less than a truckload.” The context is that of a tractor trailer truck which typically holds up to 45,000 lbs when fully loaded, carrying a number of smaller multiple shipments which are anywhere between 150 and 15,000 lbs each. This article unpacks the pros and cons of LTL shipments and FTL shipments, comparing each one’s strengths and weaknesses before concluding with guidelines on how to select the best shipping method according to business objectives and criteria. Nowhere is this more apparent than having to choose between LTL shipping ( less than truckload ) and FTL shipping ( full truckload ) freight shipping. Businesses that rely on freight shipping must grapple with the constant tension between moving goods as fast as possible to their destination and getting the best price to maximize profitability.
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