08/13/2015
LTL Shipping: You Get What You Pay For
The well-known saying “you get what you pay for” definitely rings true when it comes to shipping less-than-truckload (LTL) freight. There are three distinctly different types of LTL carriers, and you should know when it’s better to make the upgrade versus settling for the lowest level of service.
The service levels when shipping LTL can be broken down into premium, standard, and economy carriers. The differences between these service levels relate to on-time delivery percentage, possibility of a claim, communication, and billing or correction processes.
Premium LTL Carriers
This is the top tier, crème de la crème of LTL shipping. Despite the extra cost, this level of service could be ideal or even necessary for some shipping situations. Premium carriers offer high on-time delivery rates, clear shipment visibility in transit, and a low claims ratio. They also offer the quickest transit time, often within one or two days.
In cases where you are completely dependent upon the shipment arriving at a certain time – like special parts for a machine that’s down, or product that you’re low on – your best bet is to ship premium. You’ll know exactly where it’s headed and when, and most importantly, you’ll have it in your hands the day you need it.
Standard LTL Carriers
Standard LTL carriers provide just that; run-of-the-mill LTL shipping. This is the most commonly used level of service. It offers a bit slower transit time than premium shipping, but can still be expected within about two or three days, depending on the distance your shipment is traveling, of course.
If you’re moving moderately valuable freight, like displays or pallet racking, this could still be a good choice, as the standard carriers offer a relatively low claims ratio and decent tracking options. The main difference is that transit time is usually a bit lengthier than with the premium carriers. So, if you don’t need those displays right this second, this cheaper option may be a good fit.
Economy LTL Carriers
The lowest level of LTL shipping is with economy carriers. As you might imagine, this is the cheapest option. However, as the title of this blog suggests, the cheapest often doesn’t mean the best. This option offers the slowest transit time, lowest visibility for tracking, and a higher claims ratio.
We only suggest using this type of carrier if you’re shipping low-value and dense freight, such as bricks, paper products, or animal feed. If you order these products well enough in advance to not have an immediate need, this could definitely be the least expensive method of moving them.
How To Choose
Trinity has contracted rates with LTL carriers in the premium, standard, and economy categories to service your LTL needs. Each of these service levels have their pros and cons, and it truly comes down to your priorities. You should consider the timeframe you need the freight moved within, the level of visibility you prefer, as well as your concern about claims. We are happy to consult with you about which type of carrier is the best fit for your business and your freight. Just remember: shipping cost has a strong correlation with levels of service.
To get an LTL quote, or to speak with a sales rep about your shipping needs, click here.