Road transport is one of the most sought-after logistics solutions, as the satisfaction of customers and the reliability of the supply chain depend on the swift and high-quality transportation of goods.
However, maintaining a fleet of vehicles can sometimes be an impractical financial commitment for businesses. Procuring motor carriers and ensuring their ongoing maintenance entails substantial investments. Moreover, companies are burdened with the costs associated with hiring drivers and providing them with monthly salaries.
To alleviate these additional expenses, enterprises can take advantage of transportation services offered by logistics providers. They are presented with two options: FTL shipping company or Less Than Truckload (LTL) transportation.
Full Truck Load (FTL): what is FTL?
Define FTL, an acronym representing “Full Truck Load,” accurately conveys a cargo volume that completely occupies all available space within a truck.
In fundamental terms, FTL signifies a scenario where a solitary shipper possesses exclusive ownership of the entire truckload, with a single consignee as the intended recipient.
Here are some prominent characteristics associated with FTL:
- Accelerated delivery timelines, in contrast to Less Than Truck Load (LTL).
- Uninterrupted cargo transportation directly from the point of origin to the final destination, devoid of any intermediate pauses.
- The shipper maintains full autonomy over the cargo’s composition and nature.
- Generally, FTL rates surpass those of LTL, reflecting the augmented space and authority granted to the shipper.
Key distinctions between FTL and LTL
Aside from the primary divergence in shipping characteristics, FTL logistics and LTL exhibit further disparities that can be categorized as follows:
- Pricing Discrepancies FTL and LTL freight carriers may demonstrate disparities in their pricing structures. LTL often emerges as a cost-effective alternative when handling the shipment of smaller goods volumes.
- Environmental Implications LTL shipping, characterized by the collective transportation of goods, typically results in a reduced environmental footprint. Choosing to reserve an entire truck without fully maximizing its available space is not only financially imprudent but also environmentally unsustainable. Consequently, the LTL system tends to leave a smaller ecological footprint. The FTL mode aligns with a similar environmental impact only when the truck’s full capacity is utilized, resulting in equivalent environmental consequences.
- Delivery Timetables Full truckload freight transport entails the direct pickup and delivery of cargo to its designated endpoint, ensuring expedited delivery timelines. In contrast, the LTL approach mandates multiple halts at various locations, inevitably extending the delivery schedule. The necessity to collect additional items from diverse customers during these stops affects the precision of the overall shipment’s delivery timeline.
- Cargo Handling In the FTL transportation mode, the truck undergoes loading and unloading only once, typically at its point of origin and final destination. Conversely, LTL transportation involves the rearrangement of goods to accommodate new additions, requiring partial unloading at various stops. This practice not only prolongs the required time but also heightens the risk of cargo damage.
Benefits of full truckload shipping FTL
When it comes to land-based freight transportation, two primary options prevail: Full Truckload (FTL) and Less than Truckload (LTL). Full truck load service is engineered to carry substantial loads, with capacities of up to 42,500 pounds (ca. 19 t) or accommodating 24 pallets, whereas LTL serves the transportation of lighter loads.
Every business owner and manufacturer is in pursuit of ways to enhance their logistical profitability. This quest entails identifying cost-effective transportation methods and formulating sound strategies. The conventional weight and volume requirements can sometimes dissuade companies from embracing full truckload freight as their preferred mode of shipment. Nonetheless, strategic application of FTL can be advantageous for those handling shipments that exceed the constraints of LTL.
This article aims to unearth the often overlooked strategic benefits of FTL shipping that can offer substantial advantages to truckload freight shippers. These advantages encompass:
- Expanded backhaul opportunities: we routinely advise drivers to secure backhaul loads. In high-volume regions, shipment operators consolidate smaller parcels and LTL shipments until they constitute a full truckload. This method can lead to significant time and cost savings for manufacturers, and clients, and truckload carriers.
- Lower risk profile: In comparison to other freight modes, Full Truckload (FTL) is generally considered lower-risk due to its fewer touchpoints along the delivery route. Risk is commonly calculated from the moment a truck embarks on its journey until it reaches its final destination. FTL mitigates risk by relying on express shipments.
- Expedited delivery: FTL tracking is typically dispatched to a single destination, resulting in fewer intermediate stops and swifter deliveries. This makes FTL an optimal choice, particularly for transporting perishable goods.
- Enhanced bargaining power: FTL shipping rates hinge on factors such as distance and fuel costs. This provides haulers with heightened negotiating power when dealing with drivers and truckload carriers, ultimately leading to cost reductions. FTL truck is frequently quicker and safer compared to LTL, as it entails direct transportation to the final destination without intermediate transfers, leading to cost savings.
To harness the benefits of full truckload freight, both product manufacturers and end companies should be cognizant of the freight characteristics that make FTL shipping advantageous, as delineated above. Shippers should also be adept at scheduling orders to leverage full truckload shipping rates, which may necessitate collaboration with carriers, additional drivers, and third-party logistics providers.
