Annual 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. Managing LTL shipments is just one challenge that many new shipping companies face. Fortunately, we\’re here to help. Here are just a few smart tips all shippers new to LTL shipments should keep in mind.
Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network, and many LTL shippers are taking advantage of the convenience of pallets when it comes to loading their shipments. Simply put, the way pallets are designed makes them easier to move and load efficiently, and their measurements are versatile in a way that allows them to be stacked tightly together. This helps to maximize available space and lower overall costs.
Know Your Freight Classes
While it\’s true that the LTL market is estimated at approximately $35 billion, LTL shipping is far from the only class of shipping. In fact, there are 18 different freight classes in total when it comes to shipping. The lower classes typically contain dense packages that aren\’t easily damaged. High freight classes, on the other hand, tend to be lighter, less dense, and more fragile. Knowing this, it should come as no surprise that higher freight classes are typically associated with higher costs.
Know the Seven Price Factors
According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United States. Those who work with LTL shipments should understand that there are many factors that determine the pricing of LTL shipments — seven in total. This includes freight class, which we discussed earlier. But it also includes other factors like accessorial charges, distance, minimums, base weights, and weight and freight all kinds (FAK). Understanding these factors can help you manage LTL shipments more efficiently.
According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United States, and managing LTL shipments is an integral part of the business process for countless shippers. For more information about types of transportation broker software, contact 3PL Systems.