LTL Freight: Common Challenges
Ground transportation for the movement of freight is the most common method of freight transport in the US. With the highest percentage of goods being moved Nationwide by trucks. Now, when discussing truck transportation there are many different trailer types and methods used. One of the most common methods is LTL freight shipments, making LTL carriers and brokers a go-to solution for many businesses.
While partnering with an LTL provider is a fantastic option for cost-effectiveness and versatility, LTL freight can bring its’ own distinct challenges. Like damages, delays, and unexpected fees being some of the frequent obstacles that shippers experience with some LTL providers. Having a better understanding of these challenges allows shippers to implement proactive strategies. So let’s take a look at how you can overcome them.
1. Freight Damage
Since LTL freight is frequently loaded and unloaded at multiple stops. The risk of damage is significantly increased compared to utilizing a full truckload for example. Damaged freight doesn’t only come with added costs but it also runs the risk of harming your reputation with customers.
How to Minimize LTL Freight Damage 📦
Clearly label freight: Add appropriate labels like: “fragile” or “this way up” all over the freight, this way handlers are aware of any specific handling requirements.
Inspect shipments: Remember to thoroughly inspect all shipments before and after transit to catch potential damages or issues promptly so you can efficiently document claims.
Secure & appropriate packaging: Protective padding, shrink wrap and packing peanuts are all essential to properly pack LTL freight. Also, another top tip if your cargo is palletized, ensure no freight is overhanging the pallets as they’ll be more likely to sustain damage.
Check the order of delivery: Check with your carrier that your freight is originally loaded onto the truck according to what number stop you are. This can minimize unnecessary loading and unloading.
Take out a comprehensive freight insurance policy: In the cases where damage was unavoidable and your freight sustained any, investing in insurance adds an extra safety net.
2. Freight Delays
This is potentially the most common occurring challenge in LTL freight shipments. Because of the nature of sharing truck space and consolidating goods from multiple shippers, it means a singular truck may make several stops before completing its’ journey.
What does increased stops create? An increased risk for delays. This is because of a number of loading and unloading scenarios, and running on other peoples’ time causing more room for error at each stop, not to mention traffic congestion in more urban areas. Which just so happens to be where the majority of these types of shipments need delivering to.
How to Overcome LTL Freight Delays ⏰
Use carriers that have invested in technology:
Make sure you work with carriers that utilize transportation management systems (TMS) as these will provide real-time updates and tracking abilities. This way you can monitor shipments and be proactive in addressing delays.
Allow for a buffer time: Build extra buffer time into your shipping schedules where you can, especially during peak seasonal-demand periods.
Partner with a reliable LTL freight partner: Teaming up for a dependable and reliable transportation partner is critical to minimize the chances of delays. Do your research and look for a carrier that’s known for their on-time delivery performance.
Again, check the order of stops: If you can, check with your carrier what number stop your freight is, this way you can better predict a time for your delivery.
3. Accessorial Fees
Accessorial fees are additional charges that incur when a service goes beyond shipping duties. These extra services could be; a liftgate delivery, residential delivery, inside building delivery, etc. Many people and businesses are caught off guard when they receive their final bill of lading (BOL). Gaining a knowledge about these extra charges and having transparency with your carrier will make it easier to budget correctly for your LTL freight.
How to Avoid and Manage Accessorial Fees 💰
Understand fee structures: Gain a knowledge of what fees are covered in the service you’re being provided. Then, familiarize yourself with your LTL freight carriers policies to learn what services are deemed accessorial and incur an extra cost. Knowing about these extra charges allows you to budget and and better plan for them.
Provide as much detail about your LTL shipment as possible: Be as accurate as possible when giving the details about your LTL freight to your carrier. Include precise weight and dims and also explain any extra delivery requirements you might have. This will help to prevent surprise chargers and also avoid reclassification fees.
Look into partnering with a 3PL or expert broker: A 3PL – Third Party Logistics providers have ways and expertise in reducing costs. Likewise, a skilled broker will negotiate the best possible rates with carriers and handle all of the documentation on your behalf.
4. Freight Classification
It’s important for freight classification to be correctly assigned. The classification system was brought into effect from the National Motor Freight Classification (NMFC) where classification is determined by the dims, weight, and handling requirements. Classifying freight wrongly could lead to disputes and costly adjustments.
How to Simplify Freight Classification 📃
Employee training: Without running the risk of sounding patronising, ensure that your team know how to properly classify LTL freight shipments.
Utilize technology: There are softwares that can automatically apply a freight classification to a shipment, minimizing human error.
Team up with an expert: Freight brokers or the carriers themselves will be able to assist you to accurately classify your shipments.
5. Regulatory Compliance Issues
LTL carriers have a ton of regulations they must comply with, like; hours of service, weight limits and safety requirements. So, the last thing you want is to trust a carrier with handling your shipments and then you find out that they don’t follow regulations properly.
How to Ensure Regulatory Compliance ✅
Work with experienced LTL carriers and brokers: Trusted and well-established businesses in this industry can help to ensure that your shipments meet all of the necessary compliance standards.
Keep updated on changing laws and regulations: Review changes to federal and state transportation laws and where appropriate make necessary changes.
So How Can You Work Through These Challenges With Your LTL Freight Shipments?
Through implementing proactive strategies like the ones we’ve highlighted throughout this blog you can optimize your LTL shipping processes. But overall we believe the best way to combat risk is to partner with a superb LTL carrier or broker. Luckily for you reading this, we are exactly that and along with our full menu of services, LTL is one of our specialities 😉
Contact us today to discover how our expertise in LTL services can help you to achieve your shipping goals. Get in touch by cell or by clicking through the link below:
📞 888-SHIP-911
Need help with any of your LTL shipments?
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At PEI, we’re experts in dealing with specialized freight and can handle yours with any custom requirements.