U.S. e-commerce revenue is about $423.3 billion and is steadily climbing. Whether it’s full truckload, less-than-truckload (LTL), or parcel, carriers are being forced to adjust to changes in the retail industry. However, the LTL market is estimated at approximately $35 billion, and without proper management as well as knowledge of the facts, your LTL shipments could become delayed or suffer from other serious consequences. With that in mind, here are just a few of the most common myths and misconceptions about LTL shipments.
First, it’s important to recognize that contrary to popular belief, your LTL class can certainly fluctuate. While trucks carry the largest share of freight by value, tons, and ton-miles for shipments moving 750 or fewer miles, rail, on the other hand, is the dominant mode by tons and ton-miles for shipments moved from 750 to 2,000 miles. As your business continues to grow and evolve, you may take on new challenges or use new resources that cause your shipping class to change. But this doesn’t mean that it can’t change back. Overall, experts say that a change in classification can have major effects on freight costs, so plan carefully.
Experts say this may actually be the top misconception when it comes to LTL shipping. Believing this outdated myth can also mean spending more money in the long run and misleading customers. The truth is, LTL carriers just cannot guarantee pickup and delivery times. While freight visibility platforms can help, they’re not necessarily a one size fits all solution.
Finally, this myth may have been true before the implementation of freight management software. There are countless providers to choose from that offer innovative software solutions designed to maximize freight efficiency. According to Satish Jindel, president of SJ Consulting Group, length of haul has declined. Public truckload carriers report that the average length of haul has decreased 4% between 2011 and 2016, but freight management software can help shippers of varying kinds and distances.
Ultimately, freight visibility platforms can help maintain proper LTL shipments and schedules. For more information about freight management software, contact 3PL Systems.