Freight transportation in the United States totals around $700 billion total. The less-than-truckload (LTL) is significantly less at approximately $26.5 billion. However, this small component plays a vital role in the transportation industry. In particular, it is beneficial for small businesses who cannot fill a large transport truck. As part of a supply chain, freight shipping companies, truckers, and suppliers must be able to understand all aspects of this class of shipping, including how they arrive at the customer’s LTL quote.
Determining Shipping Rates
Determining the right shipping rate for LTL freight involves taking into consideration various factors relating to both the freight and the delivery system. Companies determine the rate for LTL freight using the following:
* Classification of the freight or load
* Weight of the items for delivery
* Pick up code (location)
* Destination zip code
* Overall distance
* Fuel surcharges
Other factors may also play into arriving at the cost of transporting the freight. Special needs requested or required by the shipper, and the receiver (accessorials) can influence the LTL quote for pick-up and delivery.
Reduced rates are also possible. The carrier may offer a discount for the LTL rate if they want to secure and build relationships with the shipper or broker. Conversely, a 3rd party logistics broker or shipper may work closely with an LTL carrier to find ways to reduce overall shipping costs and, therefore, arriving at the best transportation deal for all involved parties.
Obtaining an Accurate LTL Quote
In order to ensure the LTL quote your company receives is accurate and truly reflects the rates, you need to become informed. Talk to 3rd party logistics companies about your concerns. Ask questions. Keep up to date on such things as fuel costs and other factors that affect the transportation industry. Above all, know your cargo and the shippers and carrier available to handle your load.
