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Home ยป Truckload v. Less-than-Truckload (LTL)

Truckload v. Less-than-Truckload (LTL)

Full Truckload

Full truckload import shipping is the most popular for-hire option in terms of market share at 46.4 percent. Whether it be dry van or refrigerated, customers will see faster transportation of their cargo from their point of origin to destination under this transportation option compared to the other 53′ capacity options, intermodal.

Freight is typically constructed and stretched-wrapped on pallets, then loaded into the trailer for transportation. Shippers can additionally floor load or use slip sheets for loading the cargo trailer. Flooring and slip sheeting of a trailer increase the usable cubic feet capacity for a trailer because it allows more product to be loaded due to the decrease in the space on pallets and weight of those pallets. In contrast, slip sheeting and floor loading can increase the time needed to load and unload the product.

When selecting a freight providers, shippers can access a diverse set of options for truckload shipping (dry, temperature-controlled or Haz-Mat capacity) through a variety of the top freight brokers and logistics providers, although technology has really allowed freight brokers of all sizes to access the same capacity and price so it gets down to what is the best fit for the company.

Shippers are also able to access the truckload directly, but there is a limit to the number of motor carriers they are able to handle on their own.

Freight brokers , also known as logistics service providers (LSP) will be much more efficient in reaching out to the whole market due to their technology and staff , which can be leveraged at a lower cost across the larger number of customers and revenue streams they generate by using a non-asset model for their business.

Not just the speed advantage in locating the capacity of a non-asset service, but also their ability to swiftly check the company for safety as well as legal operating authority, as well as making the carrier a contract. It is crucial to make sure the load is put on the road in a legal manner.

LTL (Less-than-Truckload)

If shippers receive freight shipments that are not large sufficient to fit the full capacity of 53′ trailer, they change towards LTL or less-than-truckload. When using this mode of shipping the motor carrier seeks to consolidate multiple LTL loads from different shippers into a 53′ trailer by cleaning regional and local distribution centers that are then returned to the transloading dock to unload the line hauls that will be delivered to the destination cities. Once at the destination cities, the loads are then transferred to a different location in the cross-dock to then be sent out to local deliveries.

There is something else to know about the LTL model it is also what’s known in the industry as a hub-and-spoke network operation However, this overview will be sufficient to start you off.

Larger shippers can do their own consolidations through a transportation management software (TMS) platform that optimizes its freight routes and prices to determine the most cost-effective and efficient load schedule for the day’s shipping.

Freight consolidation is a logistics shipping method that combine multiple LTL shipments within a particular geographical area into a intermodal or truckload that is then hauled line-hauling to a destination point where the shipments are broken down and shipped LTL towards their ultimate destination. Utilizing an LTL freight consolidation program brings to the table many benefits that will be further discussed in this document.

Another freight service mode option is to use expedited. Certain industries depend on expedited freight like medical and JIT operations. This type of freight is the more costly option for shippers. Our suggestion is to take every step that is feasible to minimize the speed of use. This could mean scheduling ahead, better communication and getting teams involved to assist them in understanding the cost implications this mode affects their budgets.

In the wake of two primary modes of freight transportation in the US behind us Let us explore the issues of price, comparison, and other topics associated with the ways that shippers make use of the various OTR (over-the-road) options to improve their supply chains and logistics.

Truckload v. Less-than-Truckload (LTL)

As mentioned previously the fact that no method of transport can be considered to be superior to the other. The only way to get diversification is to have a good thing in logistics therefore it is crucial to take into consideration every mode of transportation and mix of modes in order to come up with the most effective logistics plan that is able to meet the needs of a shipper.

Assembling the best load schedule to be used for the particular day can be crucial to determine the most efficient and cost-effective method for a shipper to transport its cargo. The process of optimization is best accomplished by utilizing a transport management system (TMS) which ensures that a shipper’s freight is optimized on both rate contracts and mode that can meet the needed pickup and delivery timeframes.

Modal conversion is the place where the largest savings can be derived from optimizing freight savings. The reason for making the switch from freight methods changed the way shippers move the freight effectively. One of InTek’s strengths is helping shippers make the transformation from intermodal to truckload shipments. With the help of the versatility of truckload, alongside the efficiency of rail transportation Modal conversion from intermodal to truckload can be described as benefits for long-term savings amongst several other benefits.

What we call the “pyramid of the modal conversion” is listed below where the mode on the top is continuously being reviewed by TMS systems to merge into a mode below:

Small Parcel
LTL (less-than-truckload)

In both truckload as well as LTL both cases, it’s difficult to avoid the impact “big information analysis” has had in transforming the cost of freight.

The area where the greatest big data cost reductions come from is the conversion of the freight modes of LTL to truckload, and from intermodal to truckload.

Modal conversion from truckload to intermodal offers huge potential for saving for shippers who may benefit from additional transit associated with intermodal.

LTL cost savings through big data optimization could be resulted from the capabilities for data analysis in Transportation Management Systems (TMS). Big data can also provide companies with the capability to examine their complete logistics and supply chain network for freight savings and KPI improvements.

Big data coupled with the capabilities of TMS TMS brings several benefits for a transporter’s LTL and truckload transportation logistics network.

Enhancing Efficiency to The “Final mile delivery”

The last mile of any type of transport is among the most inefficient and therefore expensive. The connectivity in today’s TMS systems improve the capabilities of shippers and logistics service providers to eliminate these inefficiencies. Simply put knowledge is power and the information gained through big data is an effective tool in the process of analysis of shipping from origin to final destination.

Reliability by Transparency

The improvements in a supply chain and logistics brought together in the huge amounts of information that contemporary TMS can quickly simplify make the most complex simple. The personnel behind the screens can then observe the transparency of the data, allowing them to make better choices to ensure that the most efficient cost and quality of service is all moment of the day.

By automating away what is operating well in the logistics network, TMS gives the user a “bird’s eye of” of any issues which require attention in order to be able to meet the RAD, required arrival date. Eliminating the noise puts a laser focus on the factors that drive up costs while improving performance. Through the transparency comes the reliability.

Route Optimization

Transportation Management Systems (TMS) play an important role in the effectiveness of optimization of routes across all freight modes but in particular, in the performance of LTL and truckload deliveries as these freight modes are typically the largest portion of the transportation within the supply chain.

By utilizing a TMS and the data it collects, carriers can allocate resources in an efficient way. When the freight is in motion , the TMS will give the necessary feedback to ensure that the freight stays on track for on-time delivery. In the event that you have too many resources, like moving several LTL on the same O/D pair at the same time, instead of the consolidation of them into a single truckload is increasing the price of the freight lane and not capitalizing on efficiencies available within the load plan of the day.