FMi Logistics Calgary Exceptional. Logistics. Delivered

LTL 101 – The Basics

Sometimes, a shipment is too large to send with a parcel service, like Canada post, but way too small to fill a standard truck trailer. In fact, the cost of this shipment as a parcel or truckload would be insanely high because it’s not ideal for either type of providers. In this case, LTL shipping is ideal.

LTL is an acronym for “less than truckload” and refers to those shipments that are less than a truckload. They don’t require the space that a standard truck provides because of their size or weight.

Using an LTL carrier is a lot more cost-effective in this case. Shipments that weight less than 10 thousand pounds or have between 1 and 6 pallets are a good match for LTL. There are different kinds of LTL shipments: standard LTL, larger LTL, refrigerated LTL, expedited LTL (for faster than standard delivery), and guaranteed LTL (where the delivery date is agreed upon).

An LTL shipment is managed differently than a standard truckload shipment. With a standard shipment, the load is picked up and delivered in the same trailer by the same driver. In contrast, an LTL will usually be driven by multiple drivers and loaded from one trailer to another as it progresses along to the final destination. Another difference is that fact that many different LTL shipments are combined to fill one trailer. This makes sense and is really the only way to ensure profitability.

As soon as a pickup driver has filled a trailer, he returns to his point of origin. Here, his trailer is unloaded and those items are combined with shipments from other trailers. Eventually, the items will end up at a delivery terminal. When a trailer reaches a delivery terminal, it’s unloaded and reloaded onto different trucks for localized deliveries to take over.

Naturally, due to this loading and unloading procedure that LTL items go through, the delivery times are longer than standard shipments.

LTL costs are based on the weight of the shipment, how much space the shipment takes up in a trailer, the distance the shipment is moving, and the classification of the items being shipped.

A logistics company will be able to provide cost savings compared to working directly with LTL carriers. Because of the large volume of shipments combined, a logistics company is able to secure rates that are more competitive than working directly with an LTL carrier.

More FMi Blog Posts

FMi Logistics Calgary Exceptional. Logistics. Delivered

Intermodal Transportation For Your Bottom Line

Every transport mode has advantages and disadvantages. Road transport is unbeatable in the last mile due to the flexibility and availability.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Warehousing And Logistics – When It’s An Effective Marriage

One of the key components of logistical management is warehousing. This is also essential in managing storage and in the transportation of inventories.
FMi Logistics Calgary Exceptional. Logistics. Delivered

5 reasons why Manufacturers should consider using a 3PL logistics provider

Are you a manufacturing company look for a better way of doing things? As a 3PL provider, FMi can offer many services to improve your supply chain.
FMi Logistics Calgary Exceptional. Logistics. Delivered.
FMi Logistics Calgary Exceptional. Logistics. Delivered

E-Commerce 3PL Solutions

Want to scale your business? Who doesn't? Outsourcing e-commerce warehousing to a 3PL has many benefits. FMi Logistics can provide all of the necessary operational tasks –– hiring warehouse workers, maintaining equipment, paying rent, keeping track of pallets, etc.
FMi Logistics Calgary Exceptional. Logistics. Delivered

How Does Cross-Docking Help Me?

Cross-docking is a fast-track process that eliminates the need for warehouse storage space, providing a cost-effective and quick method of transporting goods from one place to another.
FMi Logistics Calgary Exceptional. Logistics. Delivered

National / International Supply Chain Disruption – Message from the President

By now we are all aware there are significant issues that risk disruption to our transportation supply chains across the country.  These issues are complex and given the recent publicity of what is looking to be an impasse that may last some time, we want to ensure our customers and partners are aware of these risks.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Transport Canada ELD and Hours of Service Mandate

Important facts to know as Canada embarks on the Transport Canada Mandate for Electronic Logging Devices in all Commercial Vehicles.

GET AN ESTIMATE
Freight & Warehouse

CONTACT US
Email or Phone