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Cutting The Cost Of LTL Freight Shipping

Cutting The Cost Of LTL Freight Shipping

The cost of freight services can be significant for a company, but hiring a trucking company or working through a 3PL (third party logistics) service is still a lower cost option than owning a fleet of your own trucks.

In many cases, particularly for smaller businesses and manufacturers, it will be essential to ship using LTL services. LTL or less than truckload or less than load is a loosely defined category. It includes items greater than 150 pounds, as that is the maximum a courier service will take, but less than 15,000 pounds, which will be considered a full load.

Different trucking companies may also have different requirements for LTL freight shipping services. For instance, some may require that the loads be palleted while others may allow for cargo that is not palleted but shipped in small containers. Keep in mind, LTL loads are not shipped alone, rather the trucking service will include multiple LTL customers on the same truck.

Know Rates

All LTL freight shipping is priced based on weight, with many companies including eight as well as the size of the packaging in relation to weight. This is known as a dimensional weight pricing option. With this method, understanding the best packaging methods to decrease the size of boxes in relationship to rate can save a lot of money in shipping costs.

Even with the straight weight as the basis for the rate, the heavier the LTL, the lower the rate. By restructuring pallets and bumping up the weight, it may be possible to reduce the rate, which will save money over time.

Prepare to Negotiate

Most LTL freight shipping services will negotiate shipping rates based on the base rate as well as a possible discount. One option to consider that may offer a substantial reduction in costs over time is to negotiate a flat rate. This is ideal if shipments are always the same size and, with this option, you can avoid any additional charges, such as fuel surcharges, that can easily offset any discounts you may be offered.

The best option is to work with a logistic company. These professionals will negotiate the best rate and even work with your in-house team to device packaging options to lower the costs of LTL freight.

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