When you’re choosing less-than-truckload (LTL) shipping mode, you think about saving freight costs. There are many different options to make LTL more cost-efficient, but one of the most working ways is LTL freight consolidation. The higher the shipment volume, the lower is the cost per shipment. Retailers and shippers use this strategy to combine or consolidate, smaller volumes of freight into bigger ones in order to reduce freight costs.
What Is LTL freight consolidation?
LTL freight consolidation is a shipping strategy when shippers combine multiple LTL shipments within a certain geographical area into truckload shipments. When shipped to the next point, shipments are broken down back to LTL and transported to their ultimate destination. Basically, the core of this strategy is transforming your LTL shipment into truckload for the majority of the transit and then managing the last mile as LTL.
What are the main benefits of LTL freight consolidation?
The known benefit of LTL consolidation is simple pricing. Generally, truckload pricing is easier than LTL, so consolidating reduces the burden of determining shipment prices. Also, for shippers who ship higher class freight, it can be extremely cost-efficient to consolidate, since the strategy can save from 10 to 50 percent in freight costs. Because of fewer stops, it can also be slightly cheaper than standard LTL.
Faster transit, improved visibility
Due to fewer stops and a more consistent route, consolidated LTL arrives faster than regular LTL shipments. The consolidated freight strategy also gives you better visibility into the transportation proccess since there’s a large volume of goods to monitor. Fewer touchpoints not only mean faster delivery times but also increased shipments safety because there is less freight handling.
More and more companies demonstrate their awareness of the global environmental issue. LTL freight consolidation is a good way to reduce carbon footprint and eliminate road congestion. Instead of many separate trucks going in the same destination, your freight is consolidating into one. It means better speed, less fuel consumed, and less damage to the planet.
Generally, LTL consolidation can be a working solution for shippers. It’s not better than standard LTL, but in particular cases like high-class LTL and long-distance shipments, shippers can save costs and time with consolidation.