What Cost-Effective Solutions Exist For Shipping LTL Freight?

Less than truckload (LTL) shipping enables businesses to move smaller freight shipments cost-effectively, without needing to fill an entire semi-truck. With rising transportation costs, companies are seeking smart ways to keep LTL shipping affordable. This article explores cost-saving solutions for LTL freight in the UK market.

Consolidating LTL Shipments

One effective strategy is consolidating multiple LTL shipments headed to the same destination. This allows you to fill more of the truck and qualify for better LTL rates offered on larger volumes.

Identify opportunities to combine LTL orders from different customers in the same area. Hold shipments briefly until you reach sufficient volume for a cost-effective truckload. Use a third-party logistics (3PL) provider to oversee consolidation and negotiate discounts. The savings per shipment can add up.

Using an LTL Freight Broker

LTL freight service providers provide another excellent solution for securing affordable pricing. Brokers act as intermediaries between shippers and carriers. They leverage volume discounts across their client base to source competitive LTL rates.

The broker seeks the optimal carrier and price point for each shipment, handling communications and paperwork. This simplifies the process for shippers and removes the burden of routing and rate negotiation. Their expertise finds efficiencies that lower costs.

Comparing Carrier Rates

It pays to compare rates when selecting a carrier for an LTL shipment. Pricing can vary significantly between providers for the same freight details.

Online rating platforms now enable easy rate comparisons. Entering shipment specifications returns tailored quotes from multiple carriers. This competition incentivises carriers to offer discounted pricing to win your business. Casting a wide net scores the best rate.

Optimising Shipment Density

The density of LTL freight heavily impacts shipping costs. Denser shipments take up less trailer space, allowing carriers to fit in more cargo per truck. This increased efficiency is passed along through lower LTL rates.

Analyse your shipment packaging and loading patterns. Look for ways to improve density through heavier pallets, stackable cargo, and condensed packaging. Avoid bulky boxes with excess space. The more weight you can safely load per cubic footage, the better the density.

Reducing Accessorial Charges

Accessorial fees for lift-gate, residential pickup, and other “extra” LTL services can drive up costs. Avoid unnecessary accessorials through proper shipment preparation and planning.

Use docks instead of residential pickup when feasible. Ensure someone is present at delivery to avoid detention fees. Provide accurate freight details upfront to avoid fees for reweighs or reclassification. Take steps to minimise accessorial needs before they appear.

Using Transportation Management Systems

Transportation management system (TMS) software delivers automation that improves LTL shipping efficiency and drives down costs. TMS solutions provide load optimisation, freight audit checks, automated carrier rating, contract/rate management, real-time tracking, analytics, and more.

These tools eliminate manual processes and paperwork that introduce errors and inefficiencies into LTL freight workflows. The right TMS tailored for your operation can significantly control LTL costs through optimised workflows.

Offering Flexible Pickup/Delivery

Allowing some flexibility in LTL pickup and delivery times provides negotiating power with carriers. Carriers prefer shipping appointments that align well with existing routes and schedules.

If pickup time doesn’t matter, communicate that. Even small 1-2 day delivery windows help carriers improve route planning. This flexibility incentivises carriers to offer their best LTL pricing in return for better asset utilisation.

Optimising LTL Shipments from the Warehouse

Efficient handling of LTL freight within the warehouse is vital for maximising savings. Here are key steps to optimise LTL shipments loaded from your warehouse:

Strategic Carrier Selection

Choosing the right LTL carriers to partner with is crucial. Issue an RFP to top LTL providers outlining your major shipping lanes, freight details, volumes, and service expectations.

Consider using an LTL broker to tender shipments optimally across several contracted carriers. However, it helps to have one or two core LTL carriers you know stand behind their service.

Consolidating LTL Orders

Look for ways to combine multiple LTL orders to the same regions using practices like:

Holding orders briefly until the additional volume is ready

Coordinating shipments across departments

Utilising cross-docking to combine volumes

Properly consolidated LTL shipments increase density and earn better rates. Just balance delays.

Accurate Freight Details

Provide highly accurate shipment details upfront to each LTL carrier, including precise dimensions, weight, and descriptions. This prevents costly mid-route reweighs or reclassing when discrepancies are found.

Perform regular audits by comparing your original details versus carrier receipts to identify any inaccuracies in your freight data. Hold warehouse staff accountable for precision. Accurate details save money.

Optimised Packaging

Right-sized packaging ensures LTL shipments cube out the trailer as efficiently as possible. Look for ways to consolidate smaller boxes into larger ones when appropriate. Use lighter pallets where feasible. Remove excess packaging materials that waste space.

Standardising packaging also streamlines warehouse handling. Regularly review the packaging for ways to maximise cube utilisation. This improves density at a lower cost.

Minimising Detention

LTL detention fees from drivers who kept waiting can erase potential savings. Ensure your warehouse staff understands allowable free time per carrier and communicates status proactively.

Adjust dock appointment scheduling and staffing to align with LTL pickup/delivery windows. Keeping drivers moving avoids fees and builds goodwill with carriers.

Leveraging LTL Technology

Deploying transportation management system (TMS) and warehouse management system (WMS) tools tailored for LTL can drive major efficiency gains.

Integrate the systems to synchronise data from order to delivery. Leverage the technology’s automation, analytics, and streamlined workflows to improve productivity and reduce costs.

Auditing Freight Bills

Even with the best processes, LTL freight bills can contain overcharges. Review invoices regularly and audit them against your original rate confirmations and shipment details.

Leverage freight audit software to assist with identifying billing errors. Overpayments eat into savings quickly, so carefully monitoring invoices is advised.

Key Factors for Improved LTL Management

Managing a cost-effective LTL freight program requires paying close attention to carrier relationships, warehouse operations, staff training, and leveraging technology. Here are some core factors to focus on:

Understand LTL Pricing

Get educated on how LTL pricing models work so you can accurately estimate costs. Rates are based on freight class, weight, distance, fuel surcharges, and accessorial fees. Ensure your team knows proper freight classifications and dimensions.

Audit bills regularly to check for discrepancies or overcharges. The depth of LTL pricing knowledge across your staff directly impacts management and negotiation success.

Foster Strong Carrier Partnerships

Although casting a wide net yields the best LTL rates on a load-by-load basis, dedicated carrier partners provide critical value. Seek LTL providers with responsive, service-focused contacts. Address any issues transparently and quickly.

Reliable LTL partners help ensure critical freight arrives on time when problems arise. Technology integrations like EDI also improve collaboration. Balancing partnerships and price competition optimises results.

Refine Warehouse LTL Processes

Smooth LTL operations within your warehouse directly enable cost savings. Ensure staff handle freight carefully to avoid damage. Dimensions, weights, and descriptions must be precise on shipping documents.

Stage shipments efficiently to speed loading and reduce detention fees. Take time to identify process bottlenecks and train workers on best practices. Refined LTL workflows minimise hiccups.

Embrace Technology

LTL shipping involves complex workflows with many variables. Technology brings clarity. Transportation management systems consolidate data, automate manual tasks, optimise loads, and provide key analytics.

Warehouse management systems integrate to synchronise freight details and tracking. Dashboards provide visibility at a glance. Technology delivers the efficiency, analytics, and control needed for cost-effective LTL management.

Conclusion

Managing LTL freight brings unique challenges, but taking a strategic approach opens doors to consistent savings. Consolidating shipments, comparing carrier rates, optimising packaging and pricing models, reducing accessorials, building carrier partnerships, and refining warehouse workflows allow companies to maximise LTL efficiency and control costs.

Deploying supportive technology like TMS and WMS systems also plays a key role in driving automation, data integration, and advanced analytics. With the right solutions and focus, LTL shipping can be leveraged as a very cost-effective method for freight delivery. Keeping an eye on emerging LTL innovations ensures your program continues evolving and delivering value into the future.