When you get a rate for an LTL shipment, the cost is influenced by so many different factors that it’s actually pretty easy to make some simple changes and see your LTL shipping costs go down. While these tips may not be possible for everyone to implement, you’ll likely find at least one or two of them are relevant to your situation!

Let’s get right down to it.

Maximize the density of your shipment

A truck can only haul so much weight. LTL carriers make a profit by fitting as many different LTL shipments into one single trailer as possible. So which do you think they prefer… a 5,000lb shipment that takes up 25% of the space in the trailer, or a 5,000lb shipment that only takes up 10% of the space? The more space your shipment takes up in the trailer, the more you’ll be charged to ship it.

While the weight of your shipment is out of your control, the density is not! Do everything you can to compact your shipment and increase the density as much as possible. If your pallets are not stackable, find a way to make it so. Pack your product more densely (less empty space between cases or product on the pallet, if possible). Stack an extra row on top of each pallet to possibly eliminate an extra pallet. Brainstorm about all the ways to make your shipment take up less space, and you will definitely see a financial reward.

Consolidate your shipments

Shipping a full truckload of freight is often far less expensive than shipping multiple LTL shipments. Have you ever considered consolidating your LTL shipments into a multi-stop truckload shipment? Of course, it depends where your shipments are delivering – for example, a multi-stop truckload picking up in Maine and delivering in Florida, Minnesota, and California might not make financial sense compared to shipping LTL. But if your delivery points are close to each other, or if they form a line across the country (at least vaguely), getting a quote on a consolidated truckload shipment would be very wise.

Negotiate a FAK

Those of you who have not heard the term “FAK” are probably raising your eyebrows. “FAK” stands for “freight all kinds”. This literally refers to when a customer ships all kinds of freight. Let’s say you ship some products at class 50, some at class 55, some at 75, and some at 150. (If you have no idea what I’m talking about, go read this blog to learn about freight class.) Since your freight class impacts the cost of your LTL shipment, and getting a rate for different classes all the time can quickly become time-consuming and complicated, you actually have a different option here. We can negotiate a FAK on your behalf, which basically means you can ship all your LTL freight at the same class. Not only does this simplify things for you, it also typically results in cost savings!

Provide accurate information

Most shippers are painfully aware that the rate for shipping their LTL freight is highly dependent on the size and weight. For this reason, some people are tempted to slightly “underestimate” the dimensions or weight of their shipment in the hopes it will result in a slightly lower shipping cost and the LTL carrier will be none the wiser.

Whatever you do, DO NOT DO THIS! Rather than saving money, you’re putting yourself at risk of being fined. If the carrier happens to double check the dimensions or weight of your shipment, and it doesn’t match what’s on the BOL… let’s just say you’ll be in a world of trouble. Your shipment cost will be raised accordingly, but you’ll also be charged with an inspection fee, and it’s possible the carrier will red-flag your freight to be inspected every single time you ever ship with them in the future.

By ensuring the weight, size, and all other information listed on the bill of lading is accurate, you will not be risking these extra fees.

If you don’t ship at a high volume, work with a 3PL

If you ship a large amount of LTL freight, you can negotiate lower pricing with LTL carriers (or have a 3PL negotiate on your behalf). But what if you don’t ship LTL that often? Does that mean you’re stuck paying the highest rates every time you call up your LTL carrier of choice? If you work directly with LTL carriers, then yes, maybe. But a great alternative is to ship your LTL freight through a 3PL (like Trinity Logistics). Because of the high volume of freight that 3PLs arrange (all of their customers combined!) they will have the lower contracted rates available that you can take advantage of without having high volume of your own. This will result in a significant cost savings, especially over time.

o you automatically route your LTL shipments to the provider who quotes you the lowest rate? For the purpose of this blog, take a moment to think back to your decision-making process and recall the reasons you decided to go with this lowest rate logistics model. With that in mind, this blog may give you pause to think about the dialogue that could be taking place within your organization in order to determine what your true LTL shipping costs are (this is more than just the rates you’re paying). Reconsidering how you view your overall LTL costs vs. individual rates will help you keep your customers happy and allow you to remain one step ahead of your competition.

Cost vs. Rate

Cost refers to the total combined expense of an LTL shipment, including both time and dollars (the shipping, customer service, accounting, administrative tasks, technology, etc.) This includes the rate.

Rate is simply the dollar amount charged by the LTL carrier for the transportation of that same LTL shipment – meaning the rate is only one part of your overall cost. Rates are easy to identify, whereas identifying cost requires a commitment and collaborative spirit from many levels of an organization, both internally and externally.

Reflect on the first quarter of 2014 and the inclement weather that impacted all of us in the movement of freight. Were you one of the thousands of shippers that experienced missed-pickups, tracking and tracing nightmares, delays, or the communication of incorrect information? Did you lose any customers over it? If so, what was the total cost associated with that? No one can control the weather, but there are certain things that can be controlled, like having a sound LTL program in place.

If the inclement weather taught us anything, it certainly exposed some gaps in many shippers’ perception that the lowest rate is the most important variable when selecting an LTL shipping provider. More times than not, there is a trade-off between the value you receive and the rate you pay.

One of Trinity’s guiding principles is continuous improvement, constantly aspiring to reach our greatest potential. In order to do so, we responded to the inclement weather experience as an opportunity to improve. We evaluated what went right, and what didn’t. We discussed it internally, and we discussed it with LTL carriers in our program, and most importantly, we discussed it with our customers.

What we found was a common theme across the board. When rate was the sole driving factor in selecting carrier providers as per our customer’s requirements, it had much more of a negative impact on the LTL shipping experience through this period than when choosing carrier providers based on overall value.  Whether it was delayed transit times or just plain poor customer service, several of our “lowest rate” customers changed their preferences in the future to avoid this model.

In retrospect, a lot of the pain our LTL customers felt during the first quarter could have been reduced or eliminated by proactively identifying value over rate. There is a place for the lowest rate model, as in some cases it is a good fit (such as when arranging warehouse transfers or returns), but we cannot ignore the fact that in the majority of times, your company’s vision and your customer’s requirements might not benefit from this method of thinking.

As you review your LTL logistics program, Trinity can work with you through honest dialogue in order to develop a sound recommendation that is flexible yet strong enough to weather the storms of an ever-changing LTL service industry.

Maybe you just took over the shipping responsibilities for your company and have no idea where to start. Maybe your business has grown from shipping parcel only to shipping one or two pallets at a time and trying to learn about LTL shipping services has your head spinning. Either way, never fear. Shipping LTL can be pretty confusing, but we’re here to help! To start, there are three LTL terms you should be aware of – both their meaning, and their implication. Equipped with this knowledge, you’ll be ready to tackle your first LTL shipment with ease.

What is my LTL freight class? Why is it so important? 

The NMFC (National Motor Freight Classification) guidelines were created, in part, to provide a standardized way for LTL carriers to assess the expense and difficulty involved in transporting a particular commodity. Put simply, your freight class ranks your shipment’s “transportability” on a number scale from 50 to 500 – 50 being the easiest to transport, 500 being the most difficult. Items with a low class are usually heavy and dense, like bricks. Items with a higher class are lighter and more fragile, like empty glass containers. Ultimately, class is based on four characteristics: density, stowability, handling, and liability. These factors, combined, all contribute to the freight class.

Freight class is important because it has a huge impact on the cost of LTL shipping. Knowing your freight class is vital to ensure you’re getting an accurate quote on the cost of  LTL shipping – and if you ship something listed at the wrong class, your freight would be inspected and your freight charges could increase significantly.

Have no idea what your freight class is? Not to worry. When you provide us with your shipment details, we’ll get all the information we need about the commodity and its packaging to determine your freight class.

What is an NMFC number? How is an NMFC number different from freight class?

The NMFC has created a system with thousands of numbers that each correspond individually to a single commodity, and they’re very specific. Your NMFC number determines what your freight class is. For example: potato flour is 73080, and listed at class 55, whereas corn flour is 73140, and listed at class 50. Just describing your commodity as “flour,” as you can see, is not enough. The NMFC number can change depending on how your commodity is packaged whether it’s in bags, boxes, glass, or crates can have an effect.

After your NMFC code has been determined, it’s used to look up the corresponding freight class for your commodity. Again, if you’re not sure of your NMFC number, it’s okay – our LTL Service specialists can take the information you give us about your commodity and its packaging to help you figure out your NMFC number. By doing this we’ll ensure an accurate quote and that you experience no additional freight charges due to classification.

What does FAK stand for? What does FAK mean in LTL shipping?

FAK stands for “freight all kinds”. If you ship multiple commodities at different freight classes, you can negotiate a FAK in order to ship everything together at the same class. This way, you don’t have to figure out the NMFC number associated with each item you ship. For example, if you ship items at class 70 and other items at class 200, you may want to negotiate a FAK of 100. If you ship a variety of commodities, you should consider contacting us about negotiating a FAK on your behalf. You could see freight savings, the benefit of a standardized freight cost for multiple products and commodities, and protection from future changes to the classification of your commodities.

We know this is barely the tip of the iceberg when it comes to LTL shipping, but armed with this knowledge, you should feel more confident charging ahead in your new LTL shipping endeavors! If you have more questions, we are here as a resource. Feel free to ask us a question online or if you’re ready to start shipping LTL, you can request an LTL quote here!

If you’ve ever shipped LTL, you’re likely aware of how complicated and confusing it can sometimes be, especially compared to shipping a full truckload. We’ve compiled a list of some commonly asked questions about the nuances of shipping LTL.

On a basic level, what are some key differences between shipping truckload and shipping LTL?
A huge difference is transit time. LTL shipments take longer – it’s sort of like taking a bus instead of a taxi. There are multiple stops, rather than one direct trip. The cost of shipping LTL is much cheaper, of course, because the shipments are smaller than a full truckload. There are stricter requirements for the details provided when booking the shipment, as well as how the shipment is packaged. LTL carriers provide a different level of service than truckload carriers, in general  – the customer is not able to communicate with the driver, and they have a pre-set schedule that cannot be interrupted. Overall, shipping LTL is just a little less flexible and a little more complicated than shipping truckload.

Why is the insurance coverage different on a spot/volume LTL shipment vs. a standard LTL shipment?
Liability is only $1 per pound on spot/volume LTL shipments because the LTL carriers are giving you a very good price, depending on the capacity available in the lane.  You’re sacrificing liability coverage and transit time for a great deal. This is something to take into consideration when deciding to go with standard LTL services or ship based on a spot quote, as sometimes you will have both options.

What classes/commodities/types of shipments do LTL freight companies absolutely LOVE to ship?
LTL carriers love heavy freight that cannot be easily damaged. This includes bricks, stone, sand, pet food, and other dense commodities. It also depends on the shipper and consignee – they love being able to deliver dock to dock. Anything that requires extra time for the driver (prisons, schools, churches, residents, ports, grocery warehouses, etc.) will likely result in a higher rate, as the carriers do not want to be held up at all. The more freight they get on and off the truck, the more money they make – so understandably, they want to go in, get loaded (or unloaded), and get out.

Why is my LTL freight class so high?! 
There could be a few factors that contribute to this. Does your LTL freight have a high value? Is the commodity light and bulky or easily damageable? Does the packaging make it more vulnerable? All of these aspects can drive up your freight class. The one aspect you have control over is your packaging. Products should be crated or boxed to be protected from other freight on the truck, and it also helps the carrier move your freight around easily when they’re at their terminals.

Why don’t I get two hours of free time to load and unload my LTL shipments?
While a truckload carrier has to worry about loading and unloading your shipment only, LTL carriers have a lot of freight to pick up and deliver in a day.  Wait time costs the LTL carriers both time and money, and pushes back all their other appointments.  It’s vital for them to stay on schedule.

What does interline mean?
Interline means that the LTL freight company has a partner carrier that services an area that they do not go into.  Instead of the LTL carrier denying service in that area, they hire another carrier to pick up freight or deliver freight to those areas.

Hopefully some of the things you’ve wondered about shipping LTL have been cleared up! Did we miss a question that you’re been perplexed about? If so, leave a comment below and we will get back to you with the answer! Don’t forget that you can request an LTL quote right here on our website. Let us help you wade through the confusing and sometimes frustrating process using LTL services – we’ll make it a breeze!

If you ship LTL freight, you’re likely aware of the direct impact that your shipment’s freight classification has on the cost required to ship it, but you may not be aware of the organization and processes that actually determine the classification for the commodity you ship. Believe it or not, your commodity is constantly at risk of having its classification changed – and you need to stay in the loop. We can help!

The National Motor Freight Traffic Association (NMFTA) is the group that maintains and publishes the National Motor Freight Classification (NMFC) guidelines, which outline the LTL freight class for every commodity you could possibly ship here on planet Earth.

Here’s what you may not know: Every year, a group at the NMFTA called the CCSB (Commodity Classification Standards Board) meets and goes over potential classification changes, either voting them into effectiveness, or rejecting the changes. Based on the density, handling, stowability, and liability of a commodity, it may be decided that the previous classification was not an accurate fit. LTL carriers play a huge role in this process, being the ones actually out there on the road, shipping LTL freight – they’re in constant contact with the NMFTA with ideas on which commodities to review in their meetings.

The official commodity classification changes for January 2014 were published last month and are available on www.nmfta.org. It can be a little overwhelming sorting through the document with all the changes up for review, so we did the leg work and made a list of all the commodities that actually had their class changes approved. They are as follows:

If you ship one of the affected commodities, please let us know and we’ll get you more details about the change! One of the perks of using Trinity’s LTL Services on your LTL shipments is that we’ll keep you in the loop on these classification changes. We’re constantly looking out for our customers – if we notice your commodity is on the docket list, you’ll likely be hearing from us. This is just another way we’re able to provide a higher level of service to our customers as a complete 3PL solution.

If you have any questions about the most recent classification changes or want to talk to us more about how this process works, you can contact us here! If you’re concerned that your commodity’s classification is having a negative impact on your shipping costs, we welcome you to request an LTL shipping quote here and see if our rates can help you save some money – there’s a good chance they will.

When you’re shipping LTL, thinking about all the potential expenses can be a little scary. Unexpected accessorial charges… volatile pricing… freight classes that could change at any time… fees and fines if you skip or make a mistake on any part of the complicated LTL shipping process… eek!

Luckily, this Halloween, you don’t have to face your fears alone. Partnering with a 3PL like Trinity can majorly simplify the process of shipping LTL, and beyond that, it can save you some serious money. We’ve rounded up a couple of examples here to show you exactly what you can expect.

One of our customers, a chemical manufacturing company, was using one LTL carrier exclusively to handle their LTL shipments. When they decided to outsource their LTL to Trinity, it was a major decision that resulted in some awesome cost savings for them. By taking advantage of our contracted rates with dozens of LTL carriers and our flexibility with routing and shipment consolidation, they’re saving thousands of dollars each month. In March of this year, over the course of a single month alone, they saved almost $15,000 compared to using the carrier they worked with previously. And if that isn’t enough of a sweet treat… not a single one of those shipments had any damages, a major improvement from their past track record with the other carrier.

Another Trinity customer, a pet food manufacturer, was struggling to find reasonable LTL rates for their regular shipments to one of their customers (about 12-14 pallets per shipment). They were lacking carrier relationships and paying the price – big time. After consulting with Trinity’s LTL Services team for a solution, we were able to assist them in consolidating 2-3 LTL shipments at a time into one truckload shipment and provide them with access to a network of reliable carriers. This company is now saving an average of 35% on every single LTL shipment!

Don’t forget that we also offer a free LTL freight management portal that makes it simple and easy for you to book your own shipments while taking advantage of our contracted carrier rates.

Don’t be frightened of your LTL shipping expenses this Halloween – request a quote using our easy online form and see how sweet your savings can really be!

As if shipping LTL isn’t complicated enough, things can get even more complicated in the event of a claim! As a member of Trinity’s dedicated claims department, I can tell you that we’re here to help you through the claims process. One of the many advantages of working with a company like ours is the extra assistance we can provide if a claim occurs. Figuring out exactly what you’re entitled to from the carrier can be tricky, but we have extensive knowledge of these processes and can provide you with the resources you need when you’re dealing with a claim.

Did you know that when you ship LTL, the type of quote you get and your product’s freight class will determine the amount of monetary reimbursement on your damaged or lost cargo? Every LTL carrier has a published, customized set of tariffs that state their maximum liability in the event of cargo loss or damage. These tariffs also state what accessorial and special charges the carrier will and will not be responsible for and the amount you will be charged for each particular service in the event they occur (such as liftgate, white glove, or redelivery).

At the time of “booking” or “quoting”, the carrier will class the items being shipped in accordance with their NMFC number. The class the items are shipped under will determine the freight rate and your return on loss or damage. There are also certain types of quotes that can initially dictate the carrier’s maximum liability in the event of loss or damage: volume, spot and truckload quotes. In the event you are quoted by one of these methods, your return for loss or damage will be covered at $1.00 per pound, regardless of the stated maximum liability for that class.

Remember, after a formal claim has been filed and before any claim funds are paid out by the carrier, they will perform an investigation to establish liability for the loss or damage. If you are a party in charge of packaging or shipping merchandise, you are responsible for making sure the product is labeled correctly and packaged in accordance with the NMFC packaging requirements for that particular item. Otherwise, the carrier may rightfully decline your claim due to insufficient packaging.

If you are a party involved in shipping or brokering LTL freight, it is a very good idea to familiarize yourself with the tariffs of each of the LTL carriers you will be utilizing, as all of them carry different amounts of liability and vary in the amounts they charge for their accessorial or special services. All LTL carriers’ tariffs are public information that is available on their websites or upon request.

As always, if you have any questions regarding limitations of liability, claims, or what to do in the case of OSD’s (overages, shortages and damages) feel free to contact the claims department via email or give us a call at 1-800-846-3400 x. 2146!