When businesses feel the need to ship out cargos to different locations, one of the concerns they must always consider is the cost for doing so. The bigger issue that needs to be answered is if the quantity of items included in the cargo will not be able to fully take up all the space of the trailer. To be cost-effective businesses who find themselves in such a predicament would need to consider less-than-truckload (LTL) shipping. This article aims to discuss LTL shipping, its difference with full-truckload (FTL) shipping, and the costs that need to be considered when availing of such a service.
Choosing Between Shipping Methods
Before sending out your items to be shipped to your preferred destinations, the first thing that you must decide on is to choose the method of shipping you would avail. You may opt to avail of the FTL shipping or the LTL shipping method. There are specific reasons why customers must choose a certain shipping method over the other. The following details are meant to make you understand more about the two shipping methods:
Full-truckload shipping (FTL)
- For customers who have a large quantity of items needed to be shipped, they most often than not choose this shipping method.
- This method is considered cost-effective if ever the total number of items to be shipped will be able to fully take up all the available space of the trailer that will be used to ship the cargo.
- Customers are paying for the usage of the whole trailer whenever they opt for FTL shipping.
- Depending on the customers’ decision, they may still avail of FTL shipping even if their cargo will not be able to use up all the space of the trailer. They opt for this option when the cargo that needs to be shipped has a time constraint or if the cargo needs extra care in handling.
- This method involves the truck following a direct route from the pickup point of the cargo up to its destination. By following a strict route, the handling of the items will only be done during loading into the trailer and unloading at the preferred destination. The imposed route may have no scheduled stops along the way.
- FTL shipping ensures that the items will not get damaged or get lost during transit because of the fact that the cargo will never leave the trailer until the destination has been reached.
- Another reason why such a method may cost more is because the service may include two drivers handling the transport of cargo. This is especially for very far destinations when one of the drivers would need to rest and a replacement is required. This is being done to avoid unnecessary stops along the way.
Less-than-truckload shipping (LTL)
- This method is used by customers who have cargo that would be insufficient to take up all the space of a trailer.
- Compared to FTL, this method naturally costs less since you are only paying for the area that your items take up inside the trailer.
- A shipping or logistics company that offers LTL shipping basically gathers all the cargo of all customers and sorts them depending on the different locations of delivery. This way they can combine the packages of multiple customers that are going to be delivered to destinations that are fairly close to each other.
- LTL shipping follows the hub and spoke distribution model. A shipping company employs multiple local logistic terminals to receive the packages from different customers. All packages will then be brought to a central distribution center. Sorting, grouping, and loading of packages from multiple packages are done in this central hub. Cargo going to the areas at close proximity is grouped into a trailer before delivery will proceed. This period is crucial for a shipping company to properly plan and segregate the cargos. Efficient organization of the cargos will maximize the usage of the trucks that would be assigned for each area of destination.
- Another difference between LTL and FTL shipping is the route assignments. For LTL shipping, the possibility of having multiple stops is unavoidable. The truck will stop at specific destinations to drop of cargo from each customer. This is not ideal for packages with time constraints.
- With LTL shipping, there is also the possibility that the packages may undergo multiple instances of unloading and loading. Depending on how the items are organized inside the trailer, there may be times when cargo that needs to be dropped off first would be placed behind other items. This gives a slight buy modafinil uk chance of some cargo getting lost or damaged before they arrive at their destination.
Factors That May Lead Customers to Choose LTL over FTL Shipping
Customers may think that choosing between shipping methods would be a simple matter. However, others may fail to realize that there are some factors that would prevent someone from picking a specific shipping method. The following list will show some of the common factors that customers would need to choose LTL over FTL shipping:
- It all boils down to the available budget that has been allocated for the shipping of cargo. For businesses that had just recently started, shipping cargo with FTL may not be feasible. Even though there is a large quantity of items that need to be shipped, if the budget does not allow it, a business may need to divide the items and prioritize shipping items in relation to their level of urgency. This could happen if most of the packages that need to be shipped have not yet been paid by their customers beforehand, which would entail that the business must first cover for the shipping fees.
- For those people who are concerned with being eco-friendly, using LTL shipping will definitely fit their needs. Since availing of an FTL shipping service would mean a business will have a dedicated truck assigned to deliver only its cargo, this would also mean that there is a possibility that the truck used may not be full with items. As more customers prefer to avail FTL services, this would entail more trucks would be travelling at the same time going to multiple destinations. This would not be considered as eco-friendly as a lot of resources would be used up, and with more trucks running at the same time, smoke emission would also increase. By choosing to go with LTL services, this would help lessen the number of travelling vehicles.
- For customers that have some cargo that needs to be delivered with no urgency and no time constraints, then they can opt for LTL shipping. Customers can just wait until the cargo arrives at its destination.
Cost of Less-Than-Truckload Shipping
When it comes to the rate of LTL shipping, it may vary depending on multiple factors such as the classification of the freight, total weight of the items to be shipped, the base rate, or the distance that will be covered. Customers need to get in contact with a reputable shipping company to get a fair quotation. A quotation from one company will most likely differ from other companies. Each company has a unique take on which factors it would consider for its LTL shipping service. However, to give you an idea of the average costs from shipping companies within Ontario, you may consider the following details:
- Distance from Toronto to Leeds and Grenville United Counties: 210 miles
- Method of shipping: Less-than-truckload (LTL)
- Items to be shipped: 5 units of air-conditioning units that weigh around 25 kg each
- Average shipping expenses per mile: CAD 1.55 (includes harmonized sales tax, base rate, fuel surcharge, and other variable expenses)
Based on the average values given above, it is fairly easy to get the total shipping cost to ship from Toronto to Leeds and Grenville United Counties. Shipping companies usually charge on a per mile basis. With a total distance of 210 miles to be considered, by multiplying the average LTL shipping cost of CAD 1.55 per mile, the total shipping expenses to ship the 5 units of air-conditioning units would be CAD 325.50.
LTL Shipping Helps Reduce Your Shipping Expenses
One of the main benefits LTL shipping has over FTL shipping is the fact that it is feasible for both small and large businesses. When looking at the budget and eco-friendliness of LTL shipping, it is recommended that businesses should start considering availing of this service. Misconceptions from the past about LTL shipping being unreliable have forced some businesses to only avail of FTL shipping. However, when a customer makes an agreement with a reputable shipping company, these reasons that may cause uneasiness will surely go away.
If you are currently looking for a shipping company that you wish to trust with the security and safety of your cargo, then it is highly recommended that you get in contact with Ontario Container Transport at 416 (905) 695 1501. By dealing with us, we can assure you that you will always get your money’s worth, when it comes to transporting your cargo to any destination that you would prefer.
