For businesses that ship products often, LTL shipping can be incredibly beneficial and cost-effective. LTL stands for “less than truckload” and refers to a freight shipment that doesn’t fill an entire truck. LTL shipments are usually shipped on pallets and range anywhere from 150 to 10,000 pounds.
Factors Affecting LTL Shipping Rates

Rates for LTL shipping are influenced by many factors such as:

  • Weight
  • Distance between locations
  • The classification of the freight

Over the past several years, the ground transportation industry has seen an increase in shipping rates. The price hikes have affected both businesses and individuals, and businesses that ship via LTL shipping are no exception. Many LTL carriers have done their best to combat the rising shipping costs, but they can only do so much when it comes to keeping costs low. Carrier base rates and accessorial charges can vary significantly between carriers, making it increasingly important to keep an eye on your charges. However, if you’re not careful, seemingly minor mistakes can lead to unforeseen accessorial charges that can raise the price of shipping even more.

How to Save Money on LTL Shipping

It’s easy for LTL shipping rates to add up, but there are steps you can take to help reduce your rates. Here are some tips to help you save money on LTL shipping and avoid surprise fees:

Confirm Freight Pickup Dates and Times

In recent years, LTL carriers have started charging for called-in pickups that are not ready at the time of pickup. The charges vary between carriers, but businesses can expect to be charged a fee each time the carrier attempts to pick up your shipment. It’s important to communicate with the LTL carrier’s shipping facility to coordinate the correct pickup date and time in order to avoid this charge.

Maximize the Density of Your Shipment

LTL carriers make a profit by fitting as many different LTL shipments as possible into a single trailer. The more space a shipment takes up, the more you’ll be charged to ship it. For example, a 3,000-pound shipment that takes up 10 percent of the trailer will be charged less than a 3,000-pound shipment that takes up 25 percent of the trailer.

Even though the weight of your shipment is out of your control, you can control the density. When packing your shipment, make sure you do everything you can to keep your pallet compact. If your pallets aren’t already stackable, you may want to find a way to do so. Try to stack an extra row on top of a palette instead of using a new one. Or consider packing your product more densely by eliminating empty spaces on the pallet.

Consolidate Your Shipments

One of the best ways to save money with LTL freight is to eliminate a shipment and consolidate it into another. Sometimes, an LTL shipment can be added to another shipment that still has extra room. Sometimes, it’s less expensive to combine two smaller LTL shipments into one full truckload (FTL) shipment.

Share All Shipment Details with Your LTL Carrier

When speaking to an LTL carrier, make sure that you give all of the details about your LTL shipment needs, even if you don’t think it’s relevant. Doing so will help avoid surprise accessorial charges. Does your shipment require a delivery appointment? Is a lift gate required for delivery? These requirements, although they may seem small, can lead to additional charges from the carrier. However, if you let the carrier know these details ahead of time, you’ll likely avoid unforeseen charges on your invoice.

Negotiate with Shipping Carriers

Even though shipping rates and operating costs are going up, LTL carriers are still willing to negotiate with businesses. You may be able to get accessorial charges reduced or waived if you frequently ship items via LTL. If you ship all kinds of freight, you may be able to negotiate a FAK. FAK stands for “freight all kinds,” meaning you frequently ship products that are in many different freight classes. Getting a rate for each class can be time-consuming and complicated, and you may be able to negotiate a FAK rate that would allow you to ship all our LTL freight at the same class. This simplifies the process and typically results in shipping cost savings.

Correctly Classify Your Freight

When shipping via LTL shipping, one of the most important things you need to consider is how the shipment is classified by the trucking industry. In the world of shipping, products are defined by their makeup, and each product definition is given a class. Guessing the class incorrectly is one of the biggest mistakes that businesses make, especially when they’re new to LTL shipping. If you’re uncertain about what class your shipment falls into, talk to the carrier’s customer service team about it so they can guide you through the process of determining your shipment’s class. The worst thing you can do is to take a random guess or rely on what you’ve used before. LTL carriers can and will inspect your shipment to determine the correct class, and if they notice that you’ve given it an incorrect classification, you’ll get charged an extra fee.

Lock in Rates by Establishing a Carrier Contract

If you don’t already have a contract with an LTL carrier, you’ll likely pay more for your shipments. Avoid paying higher spot quote rates by committing to a carrier and using them for all your LTL shipping.

Provide Accurate Size & Weight Information

Shipping rates for LTL freight are highly dependent on size and weight. For this reason, you may be tempted to underestimate the dimensions or weight of their shipment in hopes that it will result in a lower shipping cost. As tempting as it may be, this is something you want to avoid at all costs. Instead of saving money, you’re putting yourself at risk of being fined and charged more for your shipment. The problem is that the freight can, and often is, re-weighed by the carrier. If the carrier notices a discrepancy between the two weights, you’ll likely be charged additional inspection fees and accessorial fees. You’ll likely get a charge for the extra weight as well as a charge for the re-weigh service. This makes it especially important to know the exact weight of your pallet.

The carrier may also “red flag” your freight and your shipments may be inspected every time you ship with that carrier in the future. By ensuring that all the information you provide is accurate, you won’t have to worry about being charged extra fees for your shipment.

Streamline LTL Shipping with Windfall

By being proactive and working closely with your LTL carrier, you can avoid unnecessary fees and gain greater control over your shipping costs. Preparation, clear communication, and the right carrier are key to keeping LTL shipping rates manageable. With Windfall, small and growing businesses get access to tools, services, and expertise designed to streamline LTL and freight shipping across North America.