Strategies

How to Lower the Cost of LTL Shipments

D.J. Aragon
June 11, 2024
5 min read
by
D.J. Aragon
on
June 11, 2024
min read

Less-than-truckload (LTL) shipping is a cost-effective solution for businesses that need to transport smaller freight loads. However, the costs associated with LTL shipments can add up quickly if not managed effectively. Here are some practical strategies to reduce your LTL shipping expenses without compromising service quality.

1. Consolidate Shipments

Instead of sending multiple small shipments, consolidate your freight whenever possible. By combining multiple orders into a single shipment, you can reduce the number of shipments and take advantage of lower rates per unit.

2. Optimize Packaging

Proper packaging can help you minimize wasted space and avoid unnecessary freight class upgrades. Use stackable pallets, eliminate excess packaging materials, and ensure that your shipment is compact to maximize trailer space efficiency.

3. Leverage Freight Class and Density-Based Pricing

Freight classification significantly impacts shipping rates. Higher-density freight typically has lower costs per unit. Work with your carrier or a third-party logistics (3PL) provider to determine if your shipments qualify for a more favorable class.

4. Utilize Freight Brokers and 3PLs

Freight brokers and third-party logistics providers, like ADL, have established relationships with carriers and can negotiate better rates on your behalf. They can also help optimize routes and provide additional cost-saving recommendations.

5. Plan Ahead and Avoid Expedited Shipping

Expedited shipments come at a premium. Plan your shipments in advance to take advantage of standard delivery times, which are more cost-effective.

Reviewing invoices regularly ensures you only pay for what you ship.

8. Minimize Liftgate and Other Handling Services

Additional handling services, such as liftgate deliveries, inside deliveries, and residential pickups, can significantly increase shipping costs. Whenever possible, ensure that shipments are sent to locations with loading docks or forklifts to avoid these extra fees. Communicate with recipients to coordinate deliveries and reduce the need for specialized equipment.

Conclusion

Reducing LTL shipping costs requires a combination of strategic planning, carrier selection, and leveraging technology. ADL, a trusted third-party logistics (3PL) provider, can help you manage your LTL shipping costs by negotiating better rates, optimizing shipment routes, and providing expert insights tailored to your business needs.

By partnering with ADL, businesses can streamline their logistics operations, reduce expenses, and ensure reliable and efficient shipping solutions. a combination of strategic planning, carrier selection, and leveraging technology. ADL's LTL shipping services can help businesses optimize their logistics operations and improve their bottom line while maintaining reliable and efficient shipping solutions.