Navigating the Labyrinth of LTL Shipping: Your Witty, No-Nonsense Guide
You have goods to move but not enough for a semi-truck? Welcome to LTL shipping. Think of it like carpooling, sharing space and costs. It can be a journey. Let’s decode this puzzle, shall we?
I. Decoding the Giants: LTL Companies & Carriers
A. The Titans of Trucking: Top LTL Companies
You have many options in LTL. These companies are the big players, moving more freight than your local mall does on Black Friday.
- FedEx Freight: They lead in size and profitability.
- XPO: A massive player in logistics.
- Old Dominion: Reliable and consistent service.
- TForce Freight: Formerly part of UPS, now independent.
- Estes: A long-standing, dependable carrier.
- ABF Freight/ArcBest: Known for a broad service range.
- R+L Carriers: Family-owned, offering personal service.
- SAIA: Growing fast with a tech focus.
B. The King of the LTL Jungle: Largest LTL Carrier
Drumroll please… it’s FedEx Freight. They hold the title of largest LTL carrier. Think of them as Amazon for freight, focused on shipping.
C. Reliability Royalty: Most Reliable LTL Carrier
Reliability in LTL can be challenging. Old Dominion and Estes often receive praise. They all want your trust and shipping dollars.
D. Money Makers: Most Profitable LTL Carriers
Profitability keeps businesses alive. These carriers are reaping the rewards.
- FedEx Freight: They generate significant revenue.
- Old Dominion Freight Line: Reliable and profitable.
- XPO: Their scale equals high profits.
- J.B. Hunt Transport Services: A giant with diverse services.
E. Show Me the Money: Highest Paid LTL Companies (for Drivers)
Drivers like higher pay. Here are some companies to consider:
- Central Transport
- Averitt
- Estes Express Lines
Driver pay varies, but these names often rank high.
F. UPS and the LTL Lowdown
UPS delivers goods in brown trucks. But what about LTL?
- TForce Freight: Originally UPS Freight, sold to TFI International for $800 million.
- UPS Ground with Freight Pricing: For shipments too large for ground but not LTL. Think of it as a lighter version of LTL.
G. Amazon’s LTL Ambitions
Amazon is in the LTL game too:
- FBA LTL Pickup: If you sell on Amazon FBA, they pick up your shipments for their centers.
- Amazon Freight Partners: These carriers move freight within Amazon.
H. FedEx and the LTL Frontier
FedEx has an LTL strategy:
- FedEx Freight’s LTL Dominance: They are the main player in this segment.
- The FedEx Freight Spin-Off: They plan to spin off FedEx Freight into a publicly traded company.
- FedEx Freight® Economy: A budget option for basic freight and shipping needs.
- LTL Select Tool: This tool helps compare freight rates.
I. DHL’s LTL Drive
DHL also plays in the LTL space:
- DHL Road Freight Products: They provide various road freight services, including LTL.
II. LTL Shipping 101: Basics & Considerations
A. LTL Defined: What Exactly IS It?
So what is LTL shipping?
- Sharing is Caring: LTL lets your goods share trailer space with others.
- Multiple Shippers, One Trailer: Your shipment joins others headed in similar directions.
B. LTL vs. FTL: The Great Truckload Debate
LTL vs. FTL – what’s the difference?
- FTL: Renting the Whole Truck: You pay for the truck, whether you use it all or not.
- LTL: Paying for Your Space Only: You pay only for your shipment’s space on the truck.
C. Pallet Math: How Many Pallets for LTL?
Pallets play a key role in shipping. How many do you need for LTL?
- 1-6 Pallets: LTL Sweet Spot: If you ship 1 to 6 pallets, you’re in LTL territory.
- 6+ Pallets: Beyond 6 pallets? Consider “volume LTL” or partial truckload shipping.
D. Size Matters: Weight & Size Limits
Size and weight are critical in LTL.
- Weight Range: Typically 150 to 15,000 lbs for shipments.
- Linear Feet Limit: Usually less than 12 linear feet of trailer space.
- FedEx’s Heftier Limits: They accept up to 15,000 pounds but have limits per piece.
E. Decoding Dollars: LTL Pricing
The question arises: how much does LTL shipping cost?
- Average Cost: Ranges from $0.15 to $0.30 per pound.
F. Cost Culprits: Factors Affecting LTL Cost
LTL pricing depends on various factors.
- Fuel, Drivers,
- Maintenance: The Big Three: Fuel prices, driver pay, and truck upkeep drive costs. When these factors rise, shipping costs generally increase as well.
- Your Shipment’s DNA: Weight, Density, Class: Weight, density, and freight class set individual shipping costs. Your shipment has a unique pricing fingerprint.
III. LTL: The Good, The Bad, and The Truckly
A. The LTL Low Points: Disadvantages
LTL has drawbacks. Here are some to think about.
- Longer Transit Times: Multiple stops mean slower delivery. You might see more warehouses along the way.
- Risk of Damage or Loss: More handling increases the chance of damage. Proper packaging helps.
- Increased Chance of Delays: More stops mean more delays. Traffic and weather can impact schedules. LTL requires patience.
- Pricing Complexity: Understanding LTL pricing can feel complicated. Many factors make it less clear than standard purchases.
B. The LTL High Notes: Advantages
LTL also offers benefits. Let’s discuss some positives.
- Flexibility and Efficiency: LTL provides a flexible shipping option. It suits smaller and less frequent shipments.
- Cost-Effective and Eco-Friendly: LTL is often cheaper than FTL for small shipments. It uses truck space efficiently, reducing waste.
IV. Freight Class Fun: LTL Freight Classification
A. Freight Classes: The 18 Shades of Shipping
Freight classes play a vital role in LTL costs.
- 18 Classes of Freight: Each commodity is assigned to one of 18 freight classes. They are numbered, albeit somewhat randomly.
B. Class 50 Freight: The Heavyweight Champion
Class 50 is the lowest freight class.
- Dense, Durable, Easy: Class 50 is for items over 50 pounds per cubic foot. Think of dense, durable items like bricks.
- Lowest Shipping Costs: Class 50 often results in low shipping costs due to ease of handling.
- Machinery and Density: Heavy machinery fits into Class 50. It is dense and hard to damage.
C. Class 60 Freight: Slightly Less Dense
Class 60 is also noteworthy.
- 30-35 lbs per cubic foot: This class suits items weighing 30 to 35 pounds per cubic foot. Still relatively dense, though lighter than Class 50.
D. Class 70 Freight: Lighter Still
Next up is Class 70.
- 15 – 22.5 lbs: Class 70 includes items weighing from 15 to 22.5 pounds per cubic foot. It tends to be lighter and may cost more to ship.
E. NMFC Codes: The Secret Decoder Ring
NMFC codes are essential in LTL.
- National Motor Freight Classification: Items receive an NMFC code from NMFTA. This code aids in determining freight class.
F. Density is King: Factors Affecting Freight Class
Density significantly affects freight class status.
- Density Rules: Density (weight per cubic foot) affects freight class directly. Denser items generally cost less to ship.
V. Gazing into the Crystal Ball: Key Trends & Considerations
A. The LTL Future: What’s Next?
The logistics industry changes continually. LTL is in transition too.
- Evolving Landscape, Emerging Tech: New trends and technology change LTL. Expect automation and enhanced tracking.
- eCommerce Boom & Faster Deliveries: Online shopping growth pushes faster delivery demands. LTL becomes more vital in this speedy economy.
B. Why So Pricey? LTL Cost Drivers
LTL rates feel high. Here’s why
- Fuel, Drivers, Demand: The Price Hike Trifecta: Rising fuel, driver shortages, and demand have all raised shipping rates.
C. FedEx Splitsville: The Breakup Heard ‘Round the Freight World
FedEx split from FedEx Freight recently.
- “Unlocking Value” – Translation: Money: Separating aims to enhance finances and possibly simplify operations. Cost effective? Time will tell.
D. Drayage Decoded
Drayage is an important trucking concept.
- Short-Haul Container Hauling: Drayage refers to moving shipping containers short distances by truck to their destinations.
VI. Trucking Industry Deep Dive
A. Where the Big Bucks Are: Highest Paying Trucking Companies
A few companies are known for good pay:
- Old Dominion Freight Line
- Mercer Transportation
- Sysco Foods
- Walmart
- UPS
- GP Transco
- Marten Transport
- ABF Freight System
B. The Premium Payloads: Highest Paid Freight Types
- Refrigerated Loads (Reefers): Refrigerated trailers get more pay due to specialized equipment needs.
- Flatbed Loads: Flatbed freight often earns more, too, because of size and handling skills required.
- Specialized/High-Value Freight: Hazardous materials and oversized loads command higher pay due to risks involved.
C. Salary Hotspots: States with Highest Truck Driver Salaries
Location influences driver pay significantly.
- Washington, D.C., New York: Top Pay States: Drivers often earn the most in D.C. and New York. Higher living costs impact pay here.
D. Jobs in Demand: Trucking Hot Careers
Certain trucking roles are notably sought after.
- Flatbed Trucking
- Tanker Truckers
These jobs usually require special endorsements and higher pay.
E. Owner-Operator Life: Be Your Own Boss (and Trucker)
Owner-operators manage their trucking businesses.
- Potential Earnings: $150k – $250k Gross: They can gross from $150,000 to $250,000 each year. Keep in mind, expenses impact net income.
- Load Boards: The Marketplace for Freight: Load boards connect shippers with owner-operators, serving as an online marketplace for freight.
F. Earning Potential: Trucking Pay Perks
Trucking jobs often include bonuses.
- $100k+ Potential & Bonuses: Top drivers can earn over $100,000 a year with accident-free bonuses.
VII. LTL Lexicon: Related Terms You Should Know
A. Reefer: Keeping it Cool
Reefer has a crucial meaning in trucking.
- Refrigerated Trailers: “Reefer” refers to refrigerated trucks or trailers needed for cooling goods.
- Higher Pay for Chilled Cargo: Reefer loads generally command higher rates than standard van freight.
B. Drayage: Short Haul Hustle
Drayage is a key component once more.
- Container’s Last Mile (or First): Drayage deals with trucking containers short distances from ports or rail yards.
C. LTL: We Meet Again
LTL is our main focus here.
- Top Paying LTL Companies for Drivers: Central Transport, Averitt, and Estes Express Lines are worth consideration for high-paying LTL roles.
- Reliability Question: To find the most dependable LTL carrier, refer back to our top companies list.
- TForce Freight: LTL Lineage: TForce Freight, previously UPS Freight, remains an LTL carrier.
D. FTL: The Full Truckload Opposite
FTL serves as LTL’s counterpart.
- Amazon FBA FTL Pickup: Amazon manages FTL pickups too for larger shipments to fulfillment centers.
- DHL FTL Services: DHL provides FTL services in their freight offerings, covering all shipment sizes.
This concludes your overview of LTL shipping with a sprinkle of trucking insights. LTL can feel convoluted at times, but this guide aims to clarify aspects. Happy shipping!
