In 2013, the trucking industry transported nearly 15 billion tons of cargo. And if that sounds like an impressive figure, the U.S. Bureau of Labor Statistics reports that by 2040, that number is expected to increase to 18.79 billion tons. Much of this cargo is classified as LTL, or less-than-truckload cargo, and considering the fact that the LTL market is estimated at approximately $35 billion, it’s important to understand how to best manage and transport this type of cargo. Here are a few tips for non-asset-based freight brokers to save on LTL shipping.
Classify Freight Correctly
As a freight or transportation broker, it’s important to understand the different types of freight classifications to help cut costs on LTL shipments. However, this is important knowledge for anyone who regularly has to ship freight as well. The main determining factor for freight classification is density, but there are a number of secondary factors at play as well, including handling and liability. In total, there are 18 standard classifications, and choosing the wrong one can result in additional costs and fees. You should also keep in mind that these costs are often negotiable with carriers, so it may be helpful to try to work out a deal prior to departure.
Sometimes, it’s possible — and very effective — to combine smaller LTL shipments into one larger one. Many times, small shipments are headed to the same destination each day, and instead of transporting each of them separately, combining them into one large shipment lowers shipping rates and saves money. However, it’s crucial to understand when each order is expected to arrive so that you don’t have a negative impact on arrival times and scheduling.
Consider TMS Systems
Taking advantage of a high-quality transportation management software is the key to maximizing both financial and logistical efficiency. From packaging to scheduling to shipping and much more, a transportation management software solution can truly optimize all essential duties of non-asset-based freight brokers and even prevent thefts.
Annual U.S. e-commerce revenue is about $423.3 billion and steadily climbing. Whether it’s full truckload, less-than-truckload, or parcel, carriers are being forced to adjust to changes in the retail industry. Ultimately, understanding these money-saving tips is the key to maximizing LTL shipping efficiency. For more information about transportation broker software, contact 3PL Systems.