Full truckload is the largest for-hire type of transportation by market share of 46.4 percent. No matter whether it’s dry van or refrigerated, customers will see faster transportation of their freight from origin to the final destination when using this transport mode than the other 53′ capacity option and intermodal.
Freight is generally set up and wrapped on pallets before being loaded onto the trailer to be transported. Shippers can additionally floor load or use slip sheets to fill in the freight trailer. Flooring and slip sheeting a trailer can increase the cubic feet of usable capacity of a trailer due to the fact that it allows for more goods to be loaded due to the smaller size of pallets and the weight of the pallets. In contrast, slip sheeting and floor loading can increase the duration of loading and unloading the product.
When selecting a freight providers, shippers can access a diverse set of options for truckload shipping (dry, temperature-controlled or Haz-Mat capacity) through a variety of the top freight brokers and logistics providers, although technology has really allowed freight brokers of all sizes to access the same capacity and price so it gets down to what is the best fit for the company.
Shippers also have access to the truckload via a direct connection, however there’s a limit on the total number of motor carriers that they can manage on their own.
Logistics services (LSP) are more efficient in gaining access to the entire market with their equipment and staff , which can be utilized cost-effectively over the larger number of customers and revenues they have through their non-asset business model.
There is not only a efficiency factor in finding the capacity via a non-asset service, but also their ability to quickly check the carrier for safety and legal operating authority, and placing the carrier under agreement. All important factors to ensure the load is on the road legally.
When shippers have freight shipments which aren’t large enough to fill the full capacity of 53′ trailer, they switch on LTL (also known as less than truckload). With this method of transportation the motor carriers aim to consolidate several LTL loads from different shippers in one 53′ trailer by clearing regional and local distribution centers. Then, the shipments are brought back to its transload cross dock to take lines hauls for cities to be delivered. When the cities of destination are reached the loads are transferred to another location at a cross dock to then be sent out to local deliveries.
There is additional information about the LTL model that’s what’s known as a hub-and-spoke network operation However, this overview is enough to start you off.
Larger shippers can perform their own consolidations through a transportation management software (TMS) platform that optimizes its freight routes and prices to develop the most efficient and cost-effective load schedule for the day’s shipment.
Consolidation of freight is an freight method whereby a shipper combine multiple LTL transports within a geographical area into a truckload or intermodal that is then line hauled to the final destination where the shipments are smashed and then shipped LTL until they reach their destination. Utilizing the LTL freight consolidation program brings with it many benefits that will be touched upon later in this post.
Another freight service mode option is to use expedited. Certain industries benefit from expedited freight for example medical or JIT operations. This freight mode is the more expensive option for shippers, so our suggestion is to do all that is feasible to minimize speedy use, which includes planning ahead, more communication , and involving teams to assist them in understanding the impact this method of transportation can have on their budgets.
In the wake of two primary modes of freight transport in the US ahead of us, let us further unpack the subjects of cost, comparison and other topics associated with how shippers use the different OTR (over-the-road) methods to maximize their supply chain logistics and logistics.
Truckload v. Less-than-Truckload (LTL)
As was mentioned earlier that no mode of transportation is superior to one over the other. The only way to get diversification is to have a good thing in logistics It is therefore crucial to look at every mode and mix of modes to develop the best logistics strategy that will meet the requirements of a shipper.
Assembling the best load plan that will work for your particular needs is vital in determining the most cost-effective and efficient method for a shipping company to move its freight. Optimizing the process is best achieved through a transportation management system (TMS) which ensures that a shipper’s transportation is optimized based on rates and modes that will meet the required timeframes for delivery and pick-up.
Modal conversion is the place where the biggest savings is derived in optimizing the efficiency of freight. The purpose of making the switch from freight methods changed the way shippers move the freight effectively. One of InTek’s strengths is that it assists shippers in the modal transition from truckload to intermodal shipments. With the help of the versatility of truckloads, and the efficiency of rail transport the modal conversion process from intermodal and truckload can be described as you can enjoy long-term savings along with other benefits.
What we might call the “pyramid of the modal conversion” is listed below where the mode on the top is always being evaluated by TMS systems to consolidate into a lower mode:
In both truckload as well as LTL both cases, it’s difficult to ignore the effect that “big information analysis” has had on transforming the freight cost savings.
The area where the greatest big data cost reductions are realized through is through the conversion from the different freight modes, such as LTL to truckload and from truckload to intermodal.
Modal conversion from truckload to intermodal offers huge savings opportunities for shippers that may benefit from additional mode of transportation that comes with intermodal.
LTL cost reductions due to big data optimization could be attributed to the capabilities for data analysis provided by Transportation Management Systems (TMS). Big data can also provide companies with the capacity to examine their complete supply chain and logistics network to optimize freight costs and KPI improvements.
Big data, when combined with the capabilities of a TMS can bring many benefits to a shipping company’s LTL as well as truckload cargo and logistics network.
The need to improve efficiency to”the “Final Mile ” Delivery”
The last mile of any type of transport is among the least efficient and consequently costly. The high-speed connectivity available in modern TMS systems increases the capacity of both logistics and shipping service providers ability to drive out those inefficiencies. Simply put knowledge is power and the data accumulated through big data is an effective tool in the analysis of shipping, from the beginning to the end.
Reliability based on Transparency
The advances in logistics and supply chain that are brought together in the huge amounts of data that the advanced TMS can quickly summarise to make the most complicated data simple. The personnel behind the screens will observe the transparency of the data to make more informed decisions that ensure the highest cost and service is part of the equation every moment of the day.
By automatizing what is running smoothly in the logistics network, TMS gives a “bird’s eye view” of the exceptions that require attention in order to meet the RAD deadline or the date of arrival required. The elimination of the chaos puts a focus on the problems that increase costs, while improving performance. Through the transparency, comes the trust.
Transportation Management Systems (TMS) play a large role in the effectiveness of optimization of routes for all freight types, but particularly, in the execution of LTL and truckload shipments as they typically account for the most frequent transports within a company’s supply chain.
With the help of a TMS and the data it collects, carriers can assign resources in a more efficient manner. When the freight is in motion , the TMS will provide information to ensure the freight is staying on track for on-time delivery. Putting too many resources, for example, moving several LTL with the same O/D pair in the same day, versus consolidating them all into one full truckload import is increasing the price of the freight lane and not making the most of the efficiency that is available in the load plan for the day.