Why is Less Than Truckload" (LTL) important?

"Less Than Truckload" (LTL) refers to the transportation of goods that don’t require the full space of a truck. Instead of waiting to have enough freight to fill an entire truck, shippers can share space with other shipments, thus moving their goods more promptly without paying for a full truckload (FTL).

Here's why supply chains are increasingly demanding LTL solutions:

Flexibility:
LTL offers more flexibility for businesses that don’t always have enough cargo to fill an entire truck. This way, they don’t have to wait until they accumulate enough freight for a full truckload shipment.
Cost Efficiency:
Instead of paying for an entire truck when only a portion is used, shippers can pay only for the space they use. This can lead to significant cost savings, especially for smaller businesses or infrequent shippers.
Reduced Inventory Holding Costs:
With LTL, businesses can ship products more frequently in smaller quantities, allowing them to maintain lower inventory levels, thus reducing inventory carrying costs.
Better for Small and Medium Businesses:
LTL provides an opportunity for small and medium enterprises (SMEs) to ship their products without the need to wait for a full load, leveling the playing field with larger competitors.
Increased Frequency:
Businesses can ship out products more frequently, leading to faster product turnover and potentially quicker responses to market demand.
Reduced Risk:
Since LTL shipments typically consist of goods from multiple shippers, the risk of damage or loss is spread out. If an incident occurs, it affects only a portion of the truck's cargo, not an entire load from one shipper.
Enhanced Services:
Many LTL carriers offer value-added services, such as inside pickup and delivery, liftgate service, and notification options. This can provide more comprehensive service options for shippers with specific needs.
Eco-friendliness:
By consolidating shipments from multiple shippers, LTL can lead to fewer trucks on the road, reducing emissions and contributing to environmental sustainability.
Advanced Tracking:
LTL carriers often have advanced tracking systems in place that offer real-time visibility into the shipment's status, providing shippers with timely updates and peace of mind.
Adaptability to E-commerce:
The rise of e-commerce has led to more frequent but smaller shipments. LTL is better suited for this new retail landscape, where businesses might be shipping out smaller quantities more often to fulfill online orders.