Less than truckload (LTL) rates can be extremely confusing for customers to be able to estimate their shipping costs and knowing how much to charge their end customer efficiently. They may easily understand your full truckload rates, charged per mile or for total weight plus fuel, but smaller shipments carry several calculations to provide the final figures.
Less than truckload Rates Are Good for Your Customers
Where customers need to move goods, but their weight is less than an entire truckload, they are still shipping goods and improving their cash flow instead of waiting for a full truckload to become available, potentially leaving customers out of stock at delivery points.
As your LTL rates are based upon the weight that you are shipping, customers should be informed of the different weight groups which effectively change the rate for their goods. This helps them decide whether they have sufficient goods shipping to make the deal effective.
The density of your LTL rates is also important. Some light weight goods may use more space in your trucks, which will differ yet again if pallets are included within the shipment, for easy movement of the goods. Understanding density allows you to calculate the class of goods that is being shipped.
Some LTL shipping companies will only complete their service within a short geographical region, rather than shipping coast-to-coast. By working cross-country, it may be less likely for them to complete a full load with several customers’ LTL loads to be delivered.
There may be opportunities for Less than truckloads to be passed to another carrier to complete a long journey, but this time delay will add a charge to the overall cost base for the shipping.
Customers should be aware of any potential surcharges that may become necessary during the journey. The shipping charges may include unusual road tolls and extra time required to move goods in and out of specific locations, such as the additional time required to move a truck through a prison or into a ship dock.
