2 Things You Didn’t Know About LTL

by | Aug 17, 2017 | Less Than Truckload

If you’re thinking about using shipping services to get your product from Point A to Point B, there are two things about LTL shipping that can help you save money. First there’s the difference between LTL and FTL shipping. And second, there’s how to save money on high volume parcel shipping using LTL.

Keep reading to learn more, then contact the team at Amware to get a personalized shipping quote.

2 things you didn't know about LTL

LTL Shipping is an Alternative to FTL

Let’s say you need to ship three pallets of product, which isn’t enough to utilize full truckload (FTL) shipping. You could either break down the pallets, and use a parcel carrier, or you could utilize less than truckload (LTL) shipping.

If you chose to utilize a parcel carrier, you’d likely pay significantly more for shipping, since carriers use weight, size, and distance for pricing. On the other hand, utilizing LTL shipping means that your product can go in one bundle to the destination at a reduced rate for high volume shipping.

In LTL, your three pallets of product will be added to other pallets of product to make up one full truckload. This is a cost-sharing schema that can help businesses save money on the cost of shipping and still utilize freight shipping services.

Shipping LTL is Often Cheaper than Parcel

LTL carriers are often able to utilize a tactic known as “zone skipping.” This is a cost-saving measure that can be utilized by shippers who have a large number of parcels that can be grouped together in an LTL shipment.

Here’s how it works:

Parcel carriers have “zones.” The shipper pays a fee for every zone a single parcel goes through. However, an LTL carrier can bypass this by shipping your parcels in a larger bundle (or Less Than Load) to a warehouse or storage facility in the same shipping zone as the final destination of the parcels. From there, the parcels can be shipped through a standard parcel carrier, but at a substantially reduced rate than from the original destination.

Shipping with an LTL Provider

Using a parcel carrier for pallet shipment doesn’t make financial sense. It’s expensive, time-consuming, and the tracking information you get will be earned only by pulling teeth. But with an LTL provider, you get the cost-saving benefit of high-volume shipping, a one-on-one customer service experience so you get the right price for your shipment, and up-to-date tracking information about your shipment throughout the process.

At Amware, we want to help businesses of all sizes take advantage of the savings that come with using LTL shipping. Contact our team now to learn how, or sign up for a free 30-day trial of our LTL software – Amrate

Amrate - 30 day free trial

About Dan Ramella

About Dan Ramella

Dan Ramella is a member of Amware's executive team, helping drive growth and manage key relationships. With over 20-years experience in the transportation and logistics industry, Dan has helped Amware become one of Northeast Ohio's premier 3PLs