Top 5 Tips Veteran LTL Shippers Might Not Know About
LTL shipping can be a complicated process. Combining multiple shipments with different sizes, weights, freight classes, origins, and destinations on a trailer requires careful planning and precise execution to run efficiently. For first-time LTL shippers, it can be challenging to avoid making mistakes that can cause delays or cost you money. However, it’s not just beginners that can have a tough time with the complex world of LTL. Even experienced LTL shippers can run into problems or commit avoidable errors that result in a breakdown of time and resource efficiency. So today, we are going to offer a few tips for veteran shippers to help bolster their shipping strategies and streamline their LTL experience.
Know the Difference Between Freight Quote and Freight Rate
This may seem simple enough, but it can still be a common misconception among experienced shippers. A freight quote is just that: a quote. It is only as accurate as the information supplied to obtain it, and it is not set in stone as the final price you will pay for your shipment. That price, known as the freight rate, will be determined by the actual load itself and billed accordingly. Most shippers operate within a limited budget and time constraints, and surprise charges are never good for the bottom line, so it should be your goal to make sure the quoted price is as close to the final freight bill as possible.
Even minor adjustments to your invoice regarding discrepancies in a shipment’s weight, dimensions, or class can significantly affect a final invoice. If you estimate the cargo’s weight or inaccurately represent its freight class, you may see big changes to your final bill.
Additional services like liftgates, driver assist, and residential delivery can also result in rebills on your freight invoice. Making sure the shipping details you provide your 3PL or carrier are as complete and correct as possible will give you the best chance of obtaining an accurate quote, which will allow you to organize and budget your shipments properly.
Embrace Technology
Advanced technologies and automation are becoming more prevalent in the shipping industry and are a critical factor in speeding up the LTL process. Most large carriers use technology such as dimensionalizers, forklift scales, freight management software, and electronic logging devices (ELDs) to move, organize, and keep track of cargo faster and more efficiently.
For shippers, the amount of technology you invest in may be dictated by how large your operation is and what your specific needs are. From machines that stretch-wrap your freight pallets for you to software that remembers and auto-fills the weight and dimensions of your most frequently shipped items, there are a variety of ways to automate your processes and save time. Moving conveyers, labeling machines, and warehouse scales can all help streamline warehouse organization and shipping. The bottom line: the shipping industry is embracing technology to become more efficient, and you should too.
Get Organized
Organization in LTL shipping can apply to many steps of the process. From warehouse storage to packaging and assembly to shipment staging areas, organization is the key to efficiency. Employing practices like grouping similar freight classes together for shipping, staging freight for pickup in a logical way to make loading more accessible, or keeping warehouse and loading dock clutter to a minimum can all help make the shipping process smoother for shippers and drivers alike. Remember, the faster you get your LTL freight off the dock and onto the truck, the faster it gets to its destination.
Damage is Bound to Happen Eventually – So Prepare Accordingly
There is always the inherent risk of damage in freight shipping, even more so in LTL. Because of the variety of shipments packed together, the frequency of stops on a route, and the increased number of drivers and terminal workers handling each shipment, damage is bound to occur. The best way to mitigate the possibility of damage is to prepare for it and take steps to protect your shipments.
Employing careful packaging techniques like crating or double-boxing for fragile items can help protect their contents from harm while in transit. Tightly securing boxes on pallets with wraps and straps can keep things together and prevent loose cargo from jostling around and sustaining damage. It is also essential to accurately record the value of the items in a shipment and to insure them properly in the event of any damage so that you can recoup any losses sustained.
Purchase Adequate Insurance
Even when you stay organized, plan meticulously, use technology, and package carefully, products can still arrive at their destinations damaged. This is why purchasing the right cargo insurance should be your last line of defense. Cargo insurance protects shippers from financial loss due to damaged or lost shipments. It pays out the amount shippers are insured for if an unexpected event happens while the freight is in transit.
It should be noted that cargo insurance purchased through a third party is different from the limited liability coverage typically built into your freight quote from a carrier. Carrier insurance is minimal, with only a portion of the shipment covered, and the carrier is only financially responsible for loss or damage that can be directly attributable to carrier negligence. In fact, more than half of carrier liability claims are denied.
Third-party cargo insurance is much more comprehensive, and highly recommended for shippers moving valuable or fragile LTL freight. Unlike carrier insurance, which provides payouts depending on the weight of the shipment, cargo insurance is meant to reimburse the full value of the damaged or lost goods in a shipment. With this type of coverage, shippers are reimbursed the full value for lost or damaged goods without restrictive liability limits. You can learn more about freight insurance here.
You’re never too experienced to learn new ways to boost efficiency and streamline your LTL freight shipping. Try applying these tips and practices to your freight operation and find out what works for you or contact the freight experts at Koho to get more information on how to make your LTL shipments faster, easier, and more cost-efficient.
Top 5 Tips Veteran LTL Shippers Might Not Know About
LTL shipping can be a complicated process. Combining multiple shipments with different sizes, weights, freight classes, origins, and destinations on a trailer requires careful planning and precise execution to run efficiently. For first-time LTL shippers, it can be challenging to avoid making mistakes that can cause delays or cost you money. However, it’s not just beginners that can have a tough time with the complex world of LTL. Even experienced LTL shippers can run into problems or commit avoidable errors that result in a breakdown of time and resource efficiency. So today, we are going to offer a few tips for veteran shippers to help bolster their shipping strategies and streamline their LTL experience.
Know the Difference Between Freight Quote and Freight Rate
This may seem simple enough, but it can still be a common misconception among experienced shippers. A freight quote is just that: a quote. It is only as accurate as the information supplied to obtain it, and it is not set in stone as the final price you will pay for your shipment. That price, known as the freight rate, will be determined by the actual load itself and billed accordingly. Most shippers operate within a limited budget and time constraints, and surprise charges are never good for the bottom line, so it should be your goal to make sure the quoted price is as close to the final freight bill as possible.
Even minor adjustments to your invoice regarding discrepancies in a shipment’s weight, dimensions, or class can significantly affect a final invoice. If you estimate the cargo’s weight or inaccurately represent its freight class, you may see big changes to your final bill.
Additional services like liftgates, driver assist, and residential delivery can also result in rebills on your freight invoice. Making sure the shipping details you provide your 3PL or carrier are as complete and correct as possible will give you the best chance of obtaining an accurate quote, which will allow you to organize and budget your shipments properly.
Embrace Technology
Advanced technologies and automation are becoming more prevalent in the shipping industry and are a critical factor in speeding up the LTL process. Most large carriers use technology such as dimensionalizers, forklift scales, freight management software, and electronic logging devices (ELDs) to move, organize, and keep track of cargo faster and more efficiently.
For shippers, the amount of technology you invest in may be dictated by how large your operation is and what your specific needs are. From machines that stretch-wrap your freight pallets for you to software that remembers and auto-fills the weight and dimensions of your most frequently shipped items, there are a variety of ways to automate your processes and save time. Moving conveyers, labeling machines, and warehouse scales can all help streamline warehouse organization and shipping. The bottom line: the shipping industry is embracing technology to become more efficient, and you should too.
Get Organized
Organization in LTL shipping can apply to many steps of the process. From warehouse storage to packaging and assembly to shipment staging areas, organization is the key to efficiency. Employing practices like grouping similar freight classes together for shipping, staging freight for pickup in a logical way to make loading more accessible, or keeping warehouse and loading dock clutter to a minimum can all help make the shipping process smoother for shippers and drivers alike. Remember, the faster you get your LTL freight off the dock and onto the truck, the faster it gets to its destination.
Damage is Bound to Happen Eventually – So Prepare Accordingly
There is always the inherent risk of damage in freight shipping, even more so in LTL. Because of the variety of shipments packed together, the frequency of stops on a route, and the increased number of drivers and terminal workers handling each shipment, damage is bound to occur. The best way to mitigate the possibility of damage is to prepare for it and take steps to protect your shipments.
Employing careful packaging techniques like crating or double-boxing for fragile items can help protect their contents from harm while in transit. Tightly securing boxes on pallets with wraps and straps can keep things together and prevent loose cargo from jostling around and sustaining damage. It is also essential to accurately record the value of the items in a shipment and to insure them properly in the event of any damage so that you can recoup any losses sustained.
Purchase Adequate Insurance
Even when you stay organized, plan meticulously, use technology, and package carefully, products can still arrive at their destinations damaged. This is why purchasing the right cargo insurance should be your last line of defense. Cargo insurance protects shippers from financial loss due to damaged or lost shipments. It pays out the amount shippers are insured for if an unexpected event happens while the freight is in transit.
It should be noted that cargo insurance purchased through a third party is different from the limited liability coverage typically built into your freight quote from a carrier. Carrier insurance is minimal, with only a portion of the shipment covered, and the carrier is only financially responsible for loss or damage that can be directly attributable to carrier negligence. In fact, more than half of carrier liability claims are denied.
Third-party cargo insurance is much more comprehensive, and highly recommended for shippers moving valuable or fragile LTL freight. Unlike carrier insurance, which provides payouts depending on the weight of the shipment, cargo insurance is meant to reimburse the full value of the damaged or lost goods in a shipment. With this type of coverage, shippers are reimbursed the full value for lost or damaged goods without restrictive liability limits. You can learn more about freight insurance here.
You’re never too experienced to learn new ways to boost efficiency and streamline your LTL freight shipping. Try applying these tips and practices to your freight operation and find out what works for you or contact the freight experts at Koho to get more information on how to make your LTL shipments faster, easier, and more cost-efficient.
