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What is LTL Freight?

What is LTL Freight?

What is LTL Freight?

 

LTL freight, as it is commonly referred to, stands for Less-than-truckload freight. Some products or goods do not need the service of a full truckload due to the smaller parcel sizes of freight. To accommodate these smaller deliveries, freight can be transported on the same truck to avoid waste of space and additional resources to help optimize the LTL load so that the goods can be transported more efficiently. LTL shipments are usually arranged on pallets and can range anywhere from 150 pounds to 10,000 pounds.

 

Considering the way LTL shipping operates, you can combine partial loads heading to specific locations to create an efficient, full multi-stop truckload. The cost of shipping your goods is known is based on the class of items shipped, space occupied, and pickup/destination locations. Depending on your preference, LTL freight can also be shipped with specialized services such as lift gate pickup/delivery, inside pickup/delivery, residential pickup/delivery, and reweighing or reclassification with each of these services requiring additional fees.

 

Analyzing what LTL freight entails can deduce these beneficial effects:

 

Cost-effectiveness

 

You don’t have to pay for a full truckload when you are shipping LTL goods. LTL freight has made it possible for you to only pay for the space required to transport your goods. Therefore, your cost will be a fraction of what a standard full truckload shipment would cost.

 

Environmental effect

 

Fewer trucks will be transporting goods heading toward the same region, resulting in a drastic reduction of pollutants released into the ecosystem. This process will also reduce road accidents as more trucks will be carrying loads less than their capacity, thereby decreasing full truckloads on the highway. 

 

Profitable for small businesses

 

Small companies can benefit from LTL shipping because they tend to be shipping fewer goods and spending less money on freight than larger companies. LTL shipping allows small businesses to benefit from all the services professional shipping provides without paying the high cost for space they don’t need. Some carriers typically offer LTL shipping, but not all carriers do. A challenge can sometimes be finding a carrier willing to ship LTL and for the right price. 

 

Dependable Supply Chain Services' asset-based trucking division is the largest west coast regional LTL carrier, with 14 strategically located service centers providing overnight shipping service throughout California, Nevada, and Arizona. Need more services to help boost your bottom line throughout your supply chain? Contact us today for a free quote. 

Pool Distribution

Pool Distribution

Benefits of Pool Distribution

 

Pool Distribution is a cost-effective solution for customers/businesses to move their products to end-users efficiently with less travel time and costs. The concept of the pool distribution strategy is to pool different freight going to the same area or region of distribution- very similar to "carpooling" when either commuting to work or school. If you are moving freight between several regions, shipping a high volume of less-than-truckload shipments, or looking for options to save money on more extended freight transport moves, then you should consider pool distribution as a strategy. Shipments bound for the same region of distribution that is usually shipped through LTL trucking are combined to a full trailer for delivery. Once the freight reaches its final destination, the freight is sorted for local delivery to customers. 

 

•     Truckload (TL) or Pool Distribution rates are more fixed and secured than freight LTL prices. The significant benefits of pool distribution are lowered costs for smaller shipments and giving customers an opportunity to save money on pooled shipments versus LTL transport methods that may have higher rates for smaller shipments.

 

•    As parcels are bound for one region or area of distribution, freight is consolidated in one staging area and then loaded on trailers for that specific area. This process saves on multiple resources such as overall transportation costs, time and fuel; much like carpooling. Another added benefit is that it prevents vehicle wear and tear or depreciation of trucks/trailers.

 

•    Pool distribution also reduces carbon footprint. As we move towards environment and energy conservation, pool distribution is also an effective way to reduce carbon footprints in the transportation industry as there will be fewer trailers on the roads. Fewer trucks on the road contribute to less fuel and energy consumed while transporting goods.

 

•   By utilizing the pool distribution strategy, deliveries to final destinations are executed with the least handling possible, thus resulting in less potential claims. LTL shipments have the possibilities of going through several hubs on the way to its final destination. This method can take twice as long compared to the Pool Distribution method. As parcels pass through different hubs and move from one trailer to the next, there is a higher likelihood of product damage. Opting for the pool distribution method can help minimize these risks because there will be "less handling" of your goods. 

 

Pool distribution has helped raise the service level of shipping as partners/carriers continue to add this method as one of their core services. Higher service levels across the shipping industry are essential as customers rely heavily on carriers to ship their goods, therefore, having options when shipping goods is key to streamlining overall supply chain costs. It is vital in today's evolving business culture that companies select proven partners who can offer total supply chain solutions to help optimize their customized business needs. Dependable Supply Chain Services include FTL, Warehousing & Distribution, Harbor Drayage, Global Ocean & Air, Hawaii & Guam, and Third-Party Logistics making us your all-star team for customized solutions.