If your business has regular freight shipments with one or multiple carriers, LTL shipments can be extremely cost-effective and beneficial. Less-than-truckload (LTL) shipping refers to when you ship freight that doesn’t occupy the entire trailer or truck.
Most LTL shipments will be transported on pallets and can typically range up to 10,000 pounds. The amount an LTL carrier charges for freight costs can vary based on a vast range of factors, such as freight classification, the distance between locations, weight, and more.
Simply put, it’s extremely easy for LTL freight costs to add up. However, when it comes to your business, it’s imperative to pay attention to shipping costs and find LTL freight savings whenever and wherever you can.
Because of the variety of factors driving LTL freight costs, this is often easier said than done. Fortunately, the expert LTL carriers at On Track Freight Systems have outlined our top ways to reduce LTL freight costs and generate LTL freight savings.
Read on for our top tips and don’t hesitate to reach out to On Track Freight Systems for the best, most cost-efficient LTL shipping and freight savings.
Start a Freight Consolidation Program to Reduce LTL Freight Shipping Costs
One of the key strategies to generating LTL freight savings is to actively perform freight management. LTL freight management involves potentially taking multiple shipments and consolidating them into a single shipment to reduce freight costs.
How does freight management occur? If your LTL shipment can be consolidated into another shipment, this can usually result in LTL freight shipping savings. In many instances, it may be less expensive to combine two smaller shipments with the same LTL carrier or different LTL carriers into a single full truckload (FTL) shipment.
Maximize the Density of Your LTL Freight for Lower Freight Rates
LTL carriers generate profits by masterfully fitting as many shippers’ cargo into one trailer as safely possible. The more space your freight takes on the carrier’s trailer, the higher your freight charges will be.
For instance, freight that weighs 2,000 lbs and takes up 15% of the trailer will be charged less for freight that weighs 2,000 lbs and takes up 25% of the carrier’s trailer. While the actual weight of your freight is usually beyond your control, you can effectively manage the density by adjusting your supply chain strategy.
Doing so often starts and ends with how you pack your freight. In fact, there are a number of ways to save based on how you pack and load your freight onto the pallet. Most shippers who are experienced have mastered doing everything they can to create compact freight pallets.
In the event your pallets are not stackable, it’s best to find a way to make it so. For example, instead of using a new pallet for freight, attempt to stack an extra row on top of the pallet.
On the other hand, you can pack your freight more densely by reducing empty space. Another way to achieve more densely packed freight is by using a transportation management system. However, you should never negate safety or product protection in an effort to gain reduced shipping rates. In the end, it will cost you more.
Negotiate Special Less-Then-Truckload Rates with Carriers
While often overlooked, the relationship you have with a carrier has immense value. As a result, it’s imperative to develop relationships with carriers, and it never hurts to ask for a discounted rate.
For instance, you may be able to save on LTL freight shipping by having an accessorial charge or multiple certain accessorial charges waived or reduced based on frequency. In the event you all types of freight, you may be able to negotiate “freights all kinds” (FAK) for reduced LTL costs. FAK represents the situation when you regularly ship products that span across several freight classes.
Getting a specific rate for every class of LTL your ship can be complicated and extremely time-consuming. Ask your carrier if you can negotiate a FAK rate, so you can ship all LTL freight at the same class.
This common agreement can greatly simplify LTL freight shipping and help you save on LTL freight. At the same time, most carriers will offer volume discounts to help you cost-effectively ship cargo.
Always Provide Accurate Less-than-Truckload (LTL) Information
Anytime you receive an LTL freight quote, it’s very dependent on the weight and size of the products being shipped LTL. As a result, some customers seek potential cost savings by underestimating the weight or dimensions of their shipments with hopes of getting a lower freight cost.
However, this often results in you being charged more or fined for your shipment. Most trucking companies will do a double check on the dimensions and weight of your shipment. In the event it doesn’t align with whats your paperwork, you will incur an additional freight cost in the form of accessorial fees and inspection fees associated with extra labor costs.
Then, the carrier may flag your account and all shipments to be carefully inspected each time you ship in the future. So, if you’re interested in saving money and keeping freight costs low, it’s imperative all of the information you provide is accurate. This way, you don’t have to worry about incurring any additional cost or multiple additional shipping costs.
Contact On Track Freight Systems to Maximize Your LTL Spend
As the leading LTL and FTL transportation company in the Long Island, NY area, On Track Freight Systems offers fast, reliable, and affordable commercial freight solutions. With leading transit times, we have strategically located terminals throughout the Long Island area to achieve next-day delivery. We regularly partner with larger and smaller companies to generate tremendous savings.
Contact On Track Freight Systems today for a competitive rate quote.
