LTL Trucking

Arkansas Best Corporation Consolidated Freightways Corporation

Motor Cargo Industries, Inc. Old Dominion Freight Line, Inc.

ROADWAY CORPORATION

Guide to Less-Than-Truckload (LTL) Shipping

LTL companies offer cost and time advantages over traditional methods
By Jennifer Baljko

Your business is growing, new orders are coming in and products are moving quickly out the door. You realize that running to the post office with an armful of boxes several times a day is a distant memory.

It may be time to look at a less-than-truckload model.

Less-than-truckload carriers allow you to:

1. Create a bulk shipment by shrink-wrapping lots of smaller boxes together or strapping them onto a palette
2. Arrange routes so the same driver will visit the same shipper about the same time every day
3. Have drivers who pick up goods from multiple shippers and consolidate freight into a single truckload
4. Track shipments through a centralized distribution network until products reach their final destination

Action Steps

The best contacts and resources to help you get it done

Stick with If your business already uses UPS for shipping, save yourself some time by checking out LTL services offered by UPS Freight.

I recommend:  Consider UPS Freight your regional, inter-regional and long-haul LTL shipping needs, as well as service to Canada and Mexico and offshore capabilities to Alaska and Hawaii, plus Puerto Rico and the U.S. Virgin Island.

Pick a shipping partner While the big shippers offer these services, it may be worth shopping around and see how other vendors stack up.

I recommend:  See the deals from UPS and FedEx and check Business.com for a comprehensive listing of LTL carriers and service vendors.

Bone up on LTL basics Brush up on key differences between traditional shipping methods and less-than-truckload services.

I recommend:  Wikipedia and Wisegeek have a good overview of the industry, useful phrases and packaging suggestions.

Leverage technology As your shipping volume increases, you'll likely be juggling more contract documents, shipping notices, invoices, price quotes and a host of other related documents. Take a look at how software tools and Web sites can help you get a handle on these activities.

I recommend:  Agistix, which has a tool that can be customized for startups, expanding business and larger-scale operations, provides dynamic bidding and invoice consolidation. Freightquote.com gives instant quote comparisons from various carriers.

Get schooled Stay up to speed on the latest industry trends.

I recommend:  In addition to providing data services and technology tools, SMC³ also has a number of educational programs and conferences to keep folks updated.

Tips & Tactics

Helpful advice for making the most of this Guide

• Per-pound shipping prices are often cheaper than parcel post rates, but the amount of time between pickup and delivery is usually longer because packages make several stops along the way.
• Be sure to factor in possible insurance costs, which will increase shipping expenses.
• Set up a flexible program that addresses seasonality issues, relies on various transportation modes and takes into account customer requests for delivery.