Are Your LTL Rates Too High?

Ideally, all your cargo should leave your facility in full trailer loads. However, in the real world, we sometimes have to deal with partial loads for a number of reasons. This makes it more difficult for the carrier to make money and they may need to raise prices for LTL rates occasionally. However, there are things you can do to keep these rates affordable. Here are some cost-saving strategies that can help.

1. Don’t Automatically Provide the Fastest Delivery Services

It’s nice to advertise next-day, overnight, or expedited shipping with your products. However, all your customers may not need their shipments immediately. You’ll cut your “less than truckload” shipping costs considerably with this strategy, and there is another benefit. Your customer doesn’t have to pay extra for expedited shipping.

2. Go with Partial Load Specialists

When you shop for the best LTL rates, check with companies that specialize in things like partial shipments. You don’t have to find a company that only ships partial loads, but make sure this service is one of their specialties. These companies can get you the lowest prices and the best services because they have years of experience and many contacts in the shipping industry.

3. Understanding Backhaul

Check out carriers that occasionally have backhaul needs. This means they need to sometimes fill trailers to get a full load. You can often negotiate lower prices if you are willing to accept shipping that may take a little longer to reach its destination

4. Check Out Shipping Brokerages

A shipping brokerage can be a valued business partner. They utilize a number of cost-saving strategies to make sure you receive the lowest LTL rates in the business. You don’t have to worry about finding ways to cut your costs because your freight brokerage does this for a living and they understand the freight industry better than most companies.

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