Is LTL Freight Consolidation Beneficial for you?

In the world of freight, less-than-truckload (LTL) is often among the most difficult movements to get right. With all the moving parts of LTL, cost and service often take a back seat to simply getting the product to the end customer at a comparatively lower cost. Eventually, LTL pricing improvement on volume increases will end, and the finance team will want more. It is when cargo consolidation becomes relevant. The concept of less than truckload freight consolidation services seems daunting. No worries. The blog below offers the best advice. You will get to know what actually LTL consolidation is and how is it beneficial. Let’s start:

All About LTL Freight Consolidation

In case you don't know, LTL freight consolidation is a logistics freight strategy that shippers use to consolidate multiple LTL shipments from a particular region. The consolidation is done through either a truckload or an intermodal line haul. It is then broken down and shipped via LTL to the final destination.  

Using an LTL consolidation strategy, a shipper converts its LTL volume to truckload volume.  So instead of shipping directly from origin to destination with multiple LTL carriers, the shipper consolidates all shipments on a truckload and then delivers it locally. 

You choose the LTL freight shipping mode to save freight costs. LTL freight consolidation is among the most effective ways to make LTL more cost-efficient. When you ship more, the cost per shipment decreases. In order to reduce freight costs, retailers and shippers combine or consolidate smaller volumes of freight into larger ones. Therefore, this is what the LTL freight consolidation services are all about. Now you might be wondering is it beneficial for you? Let’s see:

Benefits of LTL Freight Consolidation

Although LTL consolidation programs are mainly thought of as a way to reduce LTL freight costs, there are plenty of other benefits as well. These benefits include:

• Reduce LTL Freight Cost

LTL consolidation is known for its simple pricing. Due to the relatively easy price determination of truckloads as opposed to LTL, consolidating reduces the work involved in determining prices. Furthermore, for shippers that ship higher-class freight, consolidating can be extremely cost-effective, since the strategy can save as much as 50 percent on shipping costs. Having fewer stops also means that it is somewhat cheaper than standard LTL.

• Faster transit, improved visibility

As a result of fewer stops and a more consistent route, consolidated LTL arrives sooner than regular LTL shipments. Furthermore, consolidating freight would give you greater visibility into the transportation process given the volume of goods involved. A smaller number of touchpoints means faster delivery times as well as increased shipment safety.

• Sustainability

Globally, more and more companies are demonstrating their concern for the environment. It is a good option to reduce carbon footprint and eliminate road congestion by consolidating LTL freight. Your freight is now going to one destination instead of many trucks. Therefore, there will be better speed, less fuel used, and less environmental damage. For shippers, LTL consolidation is often a viable option. Consolidation is not better than standard LTL, but shippers can save both time and money with long-distance and high-class LTL.

• Higher Service Level

Overall, all of these benefits result in a higher level of service for all stakeholders, at a lower cost. Logistics service providers simplify the process for shippers.  They live and breathe freight consolidation, giving their team expertise on your products and routes and relationships with the providers who will handle your last-mile pick-up and delivery.

Conclusion

In the world of LTL freight consolidation services, shippers will find a superior and more cost-effective alternative to typical LTL services. Don't forget, LTL isn't all or nothing.  The order can be sent back to the "normal" LTL freight shipping process on any given day since LTL consolidations cannot be created. For more information on freight costing and pricing to put you in the buyer's seat, contact us any time when and where needed.