Efficiency, cost-effectiveness, and flexibility are essential in logistics and supply chain management. Companies use different strategies to streamline their shipping processes and optimize their transportation plans. One strategy that has gained popularity in recent years is less-than-truckload (LTL) transportation.
Less-than-truckload shipping is a cost-effective transportation option designed to occupy less than the total capacity of a standard truck trailer. It only utilizes part of the trailer for a single shipment, such as a full truckload.
Though less than truckload freight is a cost-effective way of transporting goods, people are concerned about service costs. Before using the service, they remember to analyze expenses at different levels.
Remember, the service cost of less than a truckload depends on different factors, and we will discuss them in this post.
Origin and destination
The concept here is very simple: the cost increases with the distance between pick-up and delivery points. If the distance is greater, the charges are high as it increases fuel usage, driver time, and vehicle wear and tear.
Besides distance, the location’s accessibility and geographical constraints impact the service cost. Mountain terrains, narrow roads, or regions with frequent poor weather conditions add to the complexity, increasing the overall LTL cost.
Dimensions
The size, volume, weight, and packaging significantly impact the LTL service cost. A larger, bulkier shipment takes more space on a truck and reduces the space available for other shipments, so it is costlier.
The weight of the shipment affects the truck’s fuel efficiency and determines the required vehicle type. So, if the shipment is heavy, more fuel and heavy vehicles are required for transportation, increasing the service cost.
Lastly, if the shipment is packed correctly, it optimizes the space and allows more goods onto a truck. This reduces the occupied volume, lowering the cost.
Regional variabilities
Often, companies overlook regional variabilities when budgeting less-than-truckload shipping, but they are essential to consider. Transportation is smoother if the delivery is in a region with well-maintained roads and bridges. Also, different trucking regulations, tolls, or taxes directly influence the cost of shipping.
Delivery to certain regions becomes challenging to reach during specific seasons. For example, snowy conditions during winter require special equipment or alternative routes, increasing time and cost.
Types of goods
The type of goods companies transport determines the less-than-truckload freight cost. Common types are standard, non-specialized goods, hazardous materials, perishable goods, and fragile or high-value items.
The cost of standard goods is the lowest, serving as a baseline. Hazardous and fragile items require special precautions, equipment, and certifications for transportation. Perishable goods need prompt delivery or temperature-controlled environments to maintain freshness, which adds to the overall service cost.
Bottom Line
These are some of the factors that determine the less-than-truckload service cost. Other factors can also be involved, depending on your requirements. So, be clear about your shipping needs and share them with your service provider. For the Best Less-Than-Truckload Shipping Rates, Reach Out to KCH Transportation
