3 Ways LTL Freight Transport Lowers Your Warehouse And Shipping Costs
There is no denying that the cost of freight has skyrocketed since the pandemic. It isn't just the seaports, but domestic transportation as well. There continues to be a shortage of truck drivers—and consequently, fewer trucks transporting goods over the road. Fast becoming the choice of small-to-medium businesses that ship less heavy freight in lower volumes, less-than-a-truckload (LTL) freight transport is becoming a logistical staple as LTL saves companies money on warehousing, shipping, and truck cargo space.
Lower Warehouse Costs
Businesses that use full truckload (FTL) shipping must warehouse their freight until there are enough orders to warrant a full truckload. With LTL you don't have to stockpile goods since you can ship smaller loads more frequently. Warehouses can designate less space to store their wares and get them out more often. Less stockpiling means more products can occupy less warehouse space.
Lower Shipping Costs
When you are paying by the truckload, you pay for the entire trailer whether your freight fills it or not. This is not cost-efficient. If you ship LTL, you pay only for the space your freight occupies. Since freight is not stockpiled on pallets, which adds dimension and weight to your load, smaller loads can be shipped in a tighter space.
No Unused Cargo Space
Since you can ship your freight in a smaller space, LTL allows you to share cargo space with other companies. There are many companies that specialize in LTL freight transport, but not as many provide FTL. Still, these LTL carriers can offer competitive rates since the companies don't have to wait on full loads from their customers. Smaller, more frequent loads occupying less cargo space allow the LTL industry to provide those competitive rates and delivery in a timely manner.
The One Caveat: No Standardization
LTL freight transportation may reduce your need for warehouse space and cost you less for shipping since you are only paying for the space you use, but there is no standardization yet on how to price LTL. The industry is working on space-driven pricing based on weight and dimension. But it has to get everyone on board to codify the LTL process.
While the $50 billion LTL industry works to keep costs down for its customers by standardizing the pricing and automating the entire LTL process, current customers can find uniformity within their own transportation needs by sharing the load, keeping their warehousing and shipping costs manageable.
Fo more information, contact a local company like Time-DC Thunderstone Logistics.
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