Business World

Freight & Logistics: The Determining Factors that Make Up LTL Rates

LTL TruckingFreight and logistics are probably one of the most complex industry to manage. This due to the fact that it involves many things as well as certain limitations as it runs. Among the most complicated of them is the management of less than truckload (LTL) services.

Although many shipping providers are still working on accommodating this type of service, LTL carriers have become an established mode of transportation in the industry. It is because it offers a variety of delivery options which are not often found in a full-truckload service. Unlike the latter, with LTL shipping companies as well as the customers gain more control, flexibility, and visibility into their freight operations. What’s more is that LTL offers better pricing options which can be easily understood and determined by consumers.

Some of the most common rate identifiers include:

  • Weight – The freight rates for LTL are specifically structured to allow better and shipping charges. As the weight increases, it will be rated based on the lowest charge for the next weight category.
  • Density – This is often the most essential determining factor of shipping rates. To get the total mass of the cargo, the computation varies depending on the service provider.
  • Freight Classification – It is necessary to classify the type of freight you’re shipping because a certain number of shipments or goods might call for a more specialized fleet. This often requires providers to use advanced facilities and transits for safe and secure delivery of cargoes.
  • Distance – It follows the basic rule of the longer the distance is, the higher you pay for the transport cost which is pretty much plausible.
  • Surcharges or Additional Fees – This apparently stems from extra services that the company is willing to perform. Oftentimes, it goes way beyond the typical dock-to-dock or business-to-business pickup and delivery. Some good examples for this include lifting service, limited access location, as well as highly specified delivery services.

The industry of freight and logistics has indeed come a long way in the past years. Although it might be a bit too complicated to manage and operate, getting to know some basic information on LTL is a good way to start learning more about the trade.