LTL 101 – The Basics
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.