Integrating FTL and LTL carriers for shipper cost savings
Shippers with enough volume of LTL freight may choose to use a full truckload carrier to move the freight directly to a break-bulk facility of an LTL carrier. For example, a North Carolina shipper with a large quantity of shipments bound for Western US States (for example, California, Nevada, Oregon, Washington, and Idaho) may be able to realize significant cost savings by having a FTL carrier, known as a linehaul carrier, transport the freight to a break-bulk facility in a central location near the ultimate destination of the freight (in this example, delivery to a break-bulk facility in California for parceling out into LTL lots for transport to the final destinations). The use of an FTL carrier to transport this freight generally provides an overall cost savings because the freight will travel fewer miles in the FTL carrier’s network, as well as a reduced overall fuel surcharge cost—that is, one FTL carrier travels the distance to the break-bulk facility for a single carrier’s price while using only the fuel required for that FTL truck, vs. several LTL carriers at each carrier’s price, each covering some of the same path to the final destinations and each using the fuel required for each one of the LTL trucks. A further benefit is realized in both loading cost and product damage, because the freight will not need to be unloaded and reloaded as many times. Additionally, this reduces the incidence of loss and the opportunity for pilfering or theft, because all of the freight travels together and is not broken down into LTL loads until it reaches the break-bulk distribution facility.
LTL operations versus parcel carrier operations
Parcel carrier operations
A parcel carrier traditionally only handles pieces weighing less than approximately 150 pounds (68 kg). Parcel carriers typically compete with LTL carriers by convincing shippers to break larger shipments down to smaller packages. Parcel carriers typically refer to multipiece shipments as “Hundredweight” shipments as the rating is based on 100 pounds (45 kg). The Hundredweight rate is multiplied by the shipment’s weight and then divided by 100 and then rounded up to the nearest hundred.
LTL carrier operation
LTL carriers prefer to handle shipments with the least amount of handling units possible. LTL carriers prefer a shipment of 1 pallet containing many boxes shrink wrapped to form one piece rather than many individual pieces. This reduces handling costs and the risk of damage during transit. Typically, the per-pound rates of LTL carriers are less than the per-pound rates of parcel carriers.
Both LTL carriers and XL parcel carriers are similar in the fact that they both use a network of hubs and terminals to deliver freight. Delivery times by both types of service providers are not directly dependent upon the distance between shipper and consignee. Also, using an LTL carrier is very similar to that of using a parcel carrier. The shipper often has a regular, if not daily, pickup schedule and can log onto the carriers homepage to schedule pickups, track shipments, print paperwork, and manage billing information.
Jameson Logistics has been the go to company by hundreds of companies for the best service and rates in the LTL arena. Call Jameson Logistics today for all of your LTL needs.