Many people still have misconceptions about less than truckload (LTL) shipping, whether they are new to it or have always used it in their supply chain. Some may argue that 'ignorance is bliss', but in this case, what shippers don't know or comprehend might cost them both time and money.

We've compiled a list of 7 common myths about LTL services.

Transit Times Are Guaranteed

Respectable LTL carriers do not promise pick-up or delivery times; rather, they provide estimations. The estimate is based on your location and the carrier's regular lanes; if the pick-up and drop-off locations are in a high-traffic area, your delivery time can be substantially shorter than in a distant spot that isn't frequently traveled to. 

Of course, you may always ask if they can provide assured LTL shipping as an added service. Also, make sure you understand their policies from the start.

Accessorial Charges Are Calculated the Same Way

Accessorial charges differ between carriers. The easiest method to compare these is to look at the carrier's rules tariff. This tariff describes in detail the additional services (accessorial) that the carrier can supply, as well as any charges that may apply to the requested service. 

These can vary depending on whether the rates are computed in cents per hundred pounds or as a flat rate. However, these fees are always negotiable.

You Cannot Negotiate the Fuel Costs

Well, you can! Most shippers are unaware that fuel surcharges are also negotiable. Carriers aren't completely opposed to bargaining in this category; it's simply that most shippers never bring it up. 

However, leverage and consolidation potential have a significant impact on how low they can fall. If your organization has a solid relationship with your carrier and delivers frequently with them, they will most likely negotiate reduced costs. 

However, if your organization hasn't had a long-term relationship with the carrier, they may not care if you threaten to move vendors. 

Carrier Discounts Are Important, While Base Cost Isn’t

When contemplating LTL price, keep in mind that base rates might be just as, if not more important than discounts. Your carrier may offer you a significant discount to dissuade you from searching elsewhere, but while your discount may appear to be an unbelievable deal, you should investigate further. 

You may get a substantial discount, but if your base rate is significantly higher, you may wind up paying more despite the significant discount.  

My Classification Will Never Change

Shippers often comment, "I've been shipping the same freight for years, and my class has never changed. "I don't have to worry about classification." But that is a false belief. 

The freight classifications of a wide range of commodities are modified at regular intervals, thus your freight classification may change without notice.

 It is critical to periodically check that your freight class has not changed. If you work with a 3PL, they will be able to let you know when and if these modifications are implemented.

You Will Always Get the Best Rate Working Directly with the Carrier

Many shippers believe in working directly with carriers for their transportation needs, eliminating the middleman, the 3PL. "Why would I pay a company to do something, I can certainly do myself?" that's what they say. 

However, working and negotiating with carriers necessitates extensive industry expertise, reputation, and influence in order to obtain the best possible bargain.

Carriers will always convince you that you are getting the greatest possible rate. If logistics and shipping aren't one of your key skills, you're not only missing out on savings but also losing time. 

You need to understand the base cost, fees, and which areas you should negotiate on, and studying hundreds of carriers takes hours of your time. 

Temperature-Controlled Shipments Can’t Go With Ltl Shipping

Many firms believe that freight such as vegetables or ice cream cannot be transported via LTL due to the need for temperature control. The adaptability of LTL is sometimes underrated. 

With refrigerated LTL, your temperature-controlled freight will travel on the same vehicle as another customer's freight that requires a comparable temperature range.

 While there are a few LTL providers who can provide this service, it is not true that you cannot use LTL for temperature-controlled shipments. Refrigerated LTL is an excellent option to send any temperature-controlled items without having to pay full truckload rates.  

Conclusion

Whether it's full truckload shipment, less than truckload (LTL shipping), or parcel shipping, freight carriers must adapt to the changes in the retail industry. If you need to use LTL shipping services, be sure to avoid these common myths. 

Contact us today to learn more about LTL shipping. We hope that this post clarified some of the myths about less-than-truckload transportation.