Shipping goods efficiently is a critical part of any export business. Since shipping is an important factor that adds to the final cost of a product, it is important to keep shipping costs in check. Shipping goods using Less than truckload (LTL) has become an increasingly popular option among exporters who are selling small quantities or shipping fewer products.
What is Less than truckload shipping?
Less than truckload(LTL) is a type of shipping where multiple cargoes from different companies are consolidated into a single truck. Less than truckload freight typically ranges between 150 and 15,000 pounds, and they do not require a full truckload1.
Benefits of Less than truckload shipping
Here are some of the key advantages of LTL shipping:
LTL shipping is a cost-effective option for businesses that do not have enough products to fill an entire truck.
Reduced risk of damage or loss:
LTL shipments are typically handled with greater care and attention because they are consolidated with other shipments.
Lower carbon footprint:
LTL shipping can help reduce a business's carbon footprint by consolidating multiple shipments into a single truck.
Flexibility in scheduling:
LTL carriers offer flexible scheduling options to accommodate the needs of businesses.
How does Less than truckload (LTL) work?
Less than truckload (LTL) shipping works by consolidating multiple shipments
from different companies into a single truck, which helps reduce transportation costs and increase efficiency. Below is the commonly followed process for LTL:
The LTL carrier picks up the shipment from the shipper’s location.
The LTL carrier collects multiple shipments from different companies and consolidates them into a single truck at a hub or terminal.
LTL shipments can take longer to arrive at their destination than full truckload shipments because they often have multiple stops along the way.
The LTL carrier delivers the shipment to the consignee’s location.
Factors that determine LTL shipping rates
Here are some of the key factors that impact LTL shipping rates:
Longer distances generally result in higher shipping rates due to the increased fuel and labor costs associated with transportation.
Weight and dimensions:
Heavier and larger shipments require more space on the truck and may incur additional handling fees or surcharges.
The higher the freight class
, the higher the shipping rates.
Accessorial charges are additional fees for services such as inside delivery, liftgate services, and residential delivery.
Fuel surcharges are added to LTL shipping rates to account for fluctuations in fuel prices.
Different carriers may have different pricing structures, service offerings, and transit times.
Less than truckload vs Full truckload
LTL shipping is a type of freight transportation where a carrier consolidates multiple small shipments from different companies into a single truck to optimize cost efficiency. Full truckload (FTL) shipping, on the other hand, involves shipping a full truckload of goods from a single company to a destination. FTL is generally used for large shipments that require an entire truck to transport and offers fewer delivery options than LTL. The main difference between LTL and FTL is the size of the shipment and how the transportation cost is divided. While LTL is ideal for businesses that need to transport smaller shipments and want to minimize transportation costs, FTL is better suited for businesses that need to transport larger shipments and require faster delivery times.
LTL shipping is a cost-effective and flexible option for businesses that need to transport small shipments, especially those selling on e-commerce platforms not just in India but across the world. By consolidating multiple small shipments into a single truck, LTL carriers reduce transportation costs and offer multiple scheduling and delivery options.
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– an e-commerce exports program – provides the required platform and support at every step. With Amazon, you can sell to hundreds of millions of customers across 18+ international marketplaces
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Published on May 25, 2023.