In the world of less-than-truckload (LTL) shipping, there are two main models: consolidated and hub and spoke. These two models are fundamentally different in the way they operate, and each has its own advantages and disadvantages.
With LTL shipping, multiple shipments from different shippers are combined into a single truckload. These two models each do that, but have key differences once they get freight moving. When freight is shipped using consolidated shipping, once it is loaded onto a truck at the carrier’s warehouse near its origin, it stays on that truck until it reaches its final destination.
Consolidated shipping offers several advantages. Because it stays on the same truck until it reaches its destination, rather than being loaded and unloaded several times along the way, the freight is handled less, reducing the risk of damage during transport. This has the added effect of reducing the number of freight claims shippers file. (It is important to note that it doesn’t completely eliminate the possibility of damage—see why working with Koho makes filing freight claims easier than ever.) Additionally, the freight classification of goods is simpler. Finally, there is generally a simpler pricing structure, which can result in lower shipping costs for some types of cargo.
There are also some disadvantages to consider when deciding whether to use consolidated shipping. Because shipments tend to be larger, advance notice is required to allow the carrier enough time to plan. This can be a challenge for shippers who have more unpredictable shipping needs. Additionally, not all LTL carriers offer consolidated shipping services, which can make it difficult to find available capacity when needed.
This is the most common model used by LTL carriers. In this model, freight is transported to shipping centers (hubs), unloaded, then loaded onto a different truck (spoke) with other freight traveling in the same direction until it reaches its final destination. This can happen several times in the course of a single shipment.
One significant advantage is that freight can be picked up more quickly from the shipper, even on the same day in many cases. Additionally, over short distances, shipments can often be delivered within a day or two. Another advantage of this shipping model is that it often involves more regular deliveries.
As with consolidated LTL shipping, there are disadvantages to hub and spoke. One significant disadvantage is that the freight is handled more frequently, which increases the risk of damage during transport. This risk is especially high for delicate or fragile shipments. Additionally, this shipping model often involves longer delivery times compared to consolidated LTL as a result of making multiple stops along the way.
Depending on what it is you’re shipping, either one may be the more cost-effective option. Regardless of how you choose to ship your LTL freight, Koho can help you find the best rates available. Visit gokoho.com to book your next LTL shipment, or contact us to learn more about different options for your LTL shipping needs.
In the world of less-than-truckload (LTL) shipping, there are two main models: consolidated and hub and spoke. These two models are fundamentally different in the way they operate, and each has its own advantages and disadvantages.
With LTL shipping, multiple shipments from different shippers are combined into a single truckload. These two models each do that, but have key differences once they get freight moving. When freight is shipped using consolidated shipping, once it is loaded onto a truck at the carrier’s warehouse near its origin, it stays on that truck until it reaches its final destination.
Consolidated shipping offers several advantages. Because it stays on the same truck until it reaches its destination, rather than being loaded and unloaded several times along the way, the freight is handled less, reducing the risk of damage during transport. This has the added effect of reducing the number of freight claims shippers file. (It is important to note that it doesn’t completely eliminate the possibility of damage—see why working with Koho makes filing freight claims easier than ever.) Additionally, the freight classification of goods is simpler. Finally, there is generally a simpler pricing structure, which can result in lower shipping costs for some types of cargo.
There are also some disadvantages to consider when deciding whether to use consolidated shipping. Because shipments tend to be larger, advance notice is required to allow the carrier enough time to plan. This can be a challenge for shippers who have more unpredictable shipping needs. Additionally, not all LTL carriers offer consolidated shipping services, which can make it difficult to find available capacity when needed.
This is the most common model used by LTL carriers. In this model, freight is transported to shipping centers (hubs), unloaded, then loaded onto a different truck (spoke) with other freight traveling in the same direction until it reaches its final destination. This can happen several times in the course of a single shipment.
One significant advantage is that freight can be picked up more quickly from the shipper, even on the same day in many cases. Additionally, over short distances, shipments can often be delivered within a day or two. Another advantage of this shipping model is that it often involves more regular deliveries.
As with consolidated LTL shipping, there are disadvantages to hub and spoke. One significant disadvantage is that the freight is handled more frequently, which increases the risk of damage during transport. This risk is especially high for delicate or fragile shipments. Additionally, this shipping model often involves longer delivery times compared to consolidated LTL as a result of making multiple stops along the way.
Depending on what it is you’re shipping, either one may be the more cost-effective option. Regardless of how you choose to ship your LTL freight, Koho can help you find the best rates available. Visit gokoho.com to book your next LTL shipment, or contact us to learn more about different options for your LTL shipping needs.
