5 Reasons Why LTL Shipping Is Better for Small Businesses

Shipping practices must be one of the most vital decisions a business makes. After all, shipping costs make up a large portion of the budget plan because they make deliveries on a regular basis. Nowadays, many growing companies, especially eCommerce, utilize LTL shipping or less-than-truckload services to restock their items and deliver orders. It’s because LTL enables them to cut additional expenditures when moving smaller quantities of products.

Here, you will learn why LTL matters, especially to small businesses, and how it works.

What Is LTL?

LTL freight shipping is a shipping service for transporting small loads of shipments weighing 150 to 15,000 pounds without utilizing the entire truck. A shipper pays for the portion of a truck trailer their freight occupies, while other shippers also pay for the space their deliveries occupy.

This service is provided by truck freight companies, which is available in the following carrier types:

• Local Carriers. Freight companies, which operate within a local radius of 80 to 800 miles.
• Regional Carriers. Companies that move items within larger areas than the local carriers. They also work with regional and national carriers between unconnected distribution centers.
• National Carriers. These companies work throughout the country and use more transport devices with more personnel and industry competence.

Aspects that Determine LTL Delivering Rates

1. Location. Typically, the farther the distance, the higher the rate.

2. Mode. LTL deliveries can be sped up or expedited for an additional fee.

3. Dimensions. The measurements and weight of delivery directly impact rates.

4. Type. Normally, a shipment requiring special handling or devices, like delicate, harmful products, or perishables, will have higher expenses.

How Does LTL Shipping Work?

Because you combine your deliveries with some small loads of other shippers to produce full truckloads, you can save from paying full truckload costs. Its rate depends on the area used, the class of products being delivered, and pickup and destination areas.

Benefits of LTL Shipping

1. Cost-effective

Since your delivery does not fill up the entire truck space, its cost is computed based on how much it occupies, which is less expensive than a typical shipment.

2. Minimized Storage Facility Costs

Small businesses can rely on LTL freight shipping to decrease warehousing costs instead of renting additional areas. You will not need to stock numerous products at the same time because you can send some through LTL shipping.

3. Environmental-Friendly

Unknown to many, they can help the environment if they use the LTL shipping procedure. Trucks contribute to carbon emissions, which are harmful to the environment and humans. Fewer trucks carrying complete loads mean lesser emissions instead of more trucks hauling less than their capability. 

4. Improved Customer Service

Since many freight companies use flexible and convenient service alternatives, this will help reduce the delivery time that helps enhance your customer service. These could be residential delivery, inside shipment, and more.

5. Easier Tracking of Shipments

Forget the hassle of tracking your shipments because many freight companies have state-of-the-art tracking systems nowadays. This also allows your clients to keep an eye on the progress of the shipment.

Is LTL Worth It?

Choosing LTL as your method of transferring products to your customers or replenishing your stocks is undeniably effective and affordable. However, to maximize its benefits, ensure to know how the LTL industry works and how it benefits you as a small business. It also helps to know the kinds of shipping types you can use, such as dry van transport, quality flatbed trucks, and refrigerated options, depending on your items.

Here’s a practical tip from us: If you have several orders from different locations, third parties may save you. However, if these orders are going to the same location, try shipping them at the same time. On top of these, make sure to understand the exact info of your shipments, like the weight of your goods and the number of pallets your items will move on.