LTL is shorthand for less-than-truckload shipping, and it means just what the name suggests. It’s a trucking service where the cargo is not up to a full truckload. While this sounds like a process that saves money, it can be cost-intensive. However, there are tips to reduce the cost of LTL shipping.
It is possible you feel you can save more on the cost of shipping. This is a valid feeling. With that in mind, this post explores the best ways of saving on the cost of LTL freight. The ability to reduce costs in this case means there is no fixed price.
There is, however, a range of prices, which vary directly to the freight’s weight and other factors. By using the strategies for saving LTL shipping costs, you can reduce the amount you have to pay for each shipment. Hence, your net profit climbs higher.
Tips to Reduce LTL Shipping Costs
Research is the fundamental step you need to take, whether you’re shipping locally or internationally. This helps you identify how to leverage the following tips to reduce the cost of LTL shipping:
Consolidate with other shipping firms
Partnership with other firms that look to employ LTL shipping in Canada or the USA drastically reduces cost-inefficiency. This is easy if you and these other firms are shipping to the same location. This may require that you dedicate some manpower to the research. However, in the long run, it saves you a huge cost.
By consolidating with other vendors, you eliminate LTL. All parties in the partnership split the cost equally. This brings about a faster and more efficient shipment process for you and your client.
Study the traffic
This is a no-brainer tip on how to reduce LTL shipping costs. Shipping obeys the laws of economics. Whenever there is an increase in the demand for cargo space, there is a fee hike.
Hence, it will be best to do your homework to find out when a carrier is experiencing low-traffic. At these times, the carrier won’t have many vendors looking to ship cargo. To mitigate this, there will be a reduction in the cost of trucking and freight delivery services.
You can ask the carrier for insight into traffic-heavy days, especially if you have a good relationship with them. Also, you can get further information on the days they offer the best rates, amongst other cost-reducing factors.
Consider the shape and structure of the package
This tip to reduce the cost of LTL shipping may mean you have to repackage your cargo. In recent times, carriers now charge per dimensional-weight your package takes. Hence, you need to reduce the size of your packages. In essence, make them as compact as possible.
Also, ensure your packages are stackable. For instance, you need to adjust pyramid-shaped packages. Work with package dimensions that will take up less space (by measurement). This may require you to bring in extra logistics insight right from the developmental process.
Having a cost-effective design from the beginning saves you unnecessary stress. It’s better to go through all packaging related stress at the development process. It’s more stressful to have to deal with cost-related issues upon completion of the product.
Ship large loads
This partially depends on the buying power of your customer. You cannot force a customer to make a bulky purchase from you. However, once you get a large order, you can save costs by shipping at once. Shipping the large order at once is more efficient than shipping twice or thrice.
Also, getting customers to ship in bulk is easier than you’ll imagine. You can do this by offering them a price break. By offering incentives, customers can make bulk purchases, especially if they are retailers.
Combine shipping methods
Another effective strategy on the list of tips to reduce the cost of LTL shipping is using a variety of shipping options. By combining different freight delivery and trucking methods, you can reduce transportation costs. Leveraging a combination of air, water, or land freight delivery methods can be very effective.
Rather than having a default shipping method, a combination of two or more may prove to be effective. However, this will require a level of research and preparation.
Have a deep understanding of international fees
Different fees surface during international shipping. You need to know all of these fees and what they stand for. A deep understanding of these fees will help you know what applies or what doesn’t.
Sometimes, if you don’t put all the fees into consideration, you may end up having to pay more than is necessary. That’s why it’s an important tip for reducing the cost of LTL shipment. Know how fees apply to your international shipments.
Automate the process
This is another tip to reduce the cost of LTL shipping. Automation prevents errors during the processing and fulfillment of orders. It also helps you reduce the amount of paperwork to do. With this automation in the freight fulfilment framework, you can reduce costs. Also, processes will proceed faster and uninterrupted.
Manual performance of work and processes are no longer necessary. The automated system can also take on the job of more than one person. Ultimately, you get to cut down on cost and time.
Outsourcing your transport department
This may seem like a drastic move, but it is one of the tips to reduce the cost of LTL shipping. It is a very smart move, especially for small to mid-sized companies. Having to run a freight department will drain cash and resources. Hence, outsourcing to professional shipping and trucking services is best. Their daily activity revolves around freight. Hence, they are more effective than you’ll be.
Improve your loading time
The slower you load your goods, the higher the fee by the carrier. Hence, for carriers to cut you some slack, get your cargo ready for delivery on time. Though this strategy may not make a huge difference immediately, it will have an accumulative effect.
The results of using the various tips to reduce the cost of LTL shipping don’t come easy. You have to be deliberate about them. With consistency, you can reduce the amount you have to spend to send shipments from Canada and the USA.
Here at All Freight Shipping, we can make the task of saving money on LTL shipments easy. We offer affordable pricing that makes payments easier for our clients. Contact us to get a quote now.