September 10, 2008

Changes In LTL Freight Shipping Over The Years

For shipments of between 100 and 15,000 pounds LTL shipping is the least expensive and fastest way to ship. LTL freight carriers pick up freight from multiple locations and consolidate the loads for a line haul transit to the closest terminal.

Here the freight can be further consolidated for additional line hauls and than finally out for delivery to multiple destinations. Here are some of the changes taking place and how the freight carriers and freight logistics companies are responding.




Time Of Transit
For many markets, second day and next day service are becoming the norm. Shippers are looking for more service and shorter transit times. The freight carriers have been adjusting routes and trying to slim down the amount of terminals stopped at. UPS and Fedex entered into the LTL arena recently bringing proven technology and global expertise.

Rise In Cost Of Diesel Fuel
Fuel surcharges continue to escalate in line with the rising cost of fuel. Many carriers have stabilized the rising fuel surcharges in an attempt to secure more business.

Growth In The Shipping Of General Commodities
General commodities, most of which are finished goods delivered over the last mile in the supply chain to destination by LTLs, have grown faster than truckload commodities over the past 20 years.

Demands By Shippers For Wider Coverage
Certain regional carriers have pursued other options such as partnering with regional carriers in other geographic areas or larger superregionals for expanded LTL coverage.

Increased Usage of Freight Logistics Companies
Until third party freight logistics companies hit the scene LTL service was provided by National LTL carriers and partial truckload carriers. These freight logistics companies are able to offer large discounts on behalf of their agreements with the carriers. Mix and match LTL carriers to meet certain shipping requirements and then apply their strong customer service.

0 comments: