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The Different Ways Companies Can Save When Shipping FTL (7.8.24)

3 Minutes Read

FTL shipping has a different pricing structure than LTL, but does that mean it has to be more expensive?

Every business wants to save themselves time and money, but that goes double for the transportation logistics sector. It’s for this reason that Less-Than-Truckload (LTL) shipping is attractive for some since there’s no need to wait until the truck is full before getting goods on the road.

Do other types of shipping offer more effective value? Today, we’re examining Full-Truckload (FTL) shipping, the benefits it offers and how businesses can save on those rates.

The advantages of FTL

FTL shipping is a way for businesses to achieve maximum cost efficiency. While LTL allows a business to save money by sharing only part of the expense of filling a truck, FTL would allow the same business to save by purchasing the truck’s entire capacity. The first cost-saving element is easy to understand:

  • With LTL, businesses pay a little each time to distribute goods immediately to customers, but that can become quite expensive when LTL overused.

  • With FTL, much more product can be shipped all at once for a flat fee. It may take longer for enough orders to come in to fill the truck to that region, but the per-item shipping fee is much friendlier to your budget.

Time is the next thing a business can save, since FTL transits are typically faster than LTL. FTL deliveries go directly to the destination from the point of origin with no stops in between. This beats the delays caused by LTL transit, which will have multiple drop-off points along the way.

FTL can also make for happier customers because a shipper can inform them exactly when the goods are supposed to arrive. Customers awaiting an LTL shipment must be told that their order is on the way, but it’s one of many on the same truck and will have to wait its turn.

FTL provides greater security

The FTL process means goods stay on board the same truck from loading to unloading at the destination. There’s no additional handling along the way like with LTL. These extra stops and hands can mean increased changeover risk of damage, loss, and theft.

How can my business save on FTL?

The first step is to forge a steady and respectful business/carrier relationship. You’re both crucial to the other’s job. The more you know, share and understand about each other, the smoother business will flow between you. FTL carriers prefer customers who are reliable and may show that preference in lower charges.

Automation is another way to save because it limits time and human error. If your business is still handling all its FTL needs using pen and paper, it may be time to consider one of the many programs and apps available to help shippers digitize their distribution.

Great preparation by the shipper reduces lead times for the FTL provider, giving the latter plenty of time to plan for the pickup. Businesses will always find themselves paying more the less time FTL teams have to respond. Preparation also limits delay times by getting goods onto the truck faster. This lowers carrier detention times and keeps the whole FTL chain rolling smoothly.

Accessorial charges can really add to FTL expenses, but they can be limited with good communication between businesses and carriers. Such charges take many forms including additional stops, out-of-route miles, or detention. Good communication and thorough shipper preparation mean both sides know what to expect.

Lastly, it should go without saying that timely payment of FTL charges goes a long way in building good faith with a carrier. Some carriers may even offer ongoing savings for early payers as part of their contract. A logistic consultant can help make sure you’re getting all the discounts you should.

Resource Logistics Group (RLG) helps you save in multiple ways

State-of-the-art technology is part of who we are. It’s a system we use to help our clients optimize their logistics spend and cut out the middleman by negotiating directly with their carriers. We combine our experience with current market intelligence to aid our clients in negotiating the best possible carrier contracts and building relationships that benefit everyone.

We also help to shoulder the back-office burden, giving your business greater freedom and saving you time to be even more productive. Every one of our many services is designed to make your operations more efficient and less expensive. Get in touch to learn more about how we can streamline your shipping.

Resource Logistics Group provides transportation and logistics advice combined with professional services and state-of-the-art technology. From contract negotiations to easing back office burdens, we’re your ally in excellence. Connect with us on our contact page for a free benchmarking analysis.

Steve Huntley