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Consumer Goods Logistics Blog


LTL Secrets Revealed!

Published by Colleen Carter on June 26, 2013

For smaller shippers, there ARE alternatives to the higher cost and unpredictable schedules of LTL carriers.  A new KANE white paper, LTL Secrets Revealed, explores some of these freight consolidation strategies, including pool distribution and retail consolidation. 

The paper also shares some secrets that LTL carriers DON'T want you to know.   Here are a few:

1. Legacy costs inflate LTL rates.  Many of the biggest LTL carriers are saddled with legacy costs, such as pensions, which force them to keep rates high.  Small carriers without these costs simply put their prices a shade below the big guys and enjoy the resulting margins.

2. The rate they quote is rarely the final rate.  Any service beyond basic delivery triggers an added accessorial charge.

3. Shipments take longer than you'd expect.  Freight sent via LTL could take twice as long to reach its destination compared to consolidated truckload freight.  For example, a consolidated TL shipment from Pennsylvania to Arizona takes about three days, compared to six to ten days via LTL.

Download our new white paper to learn more about what LTL carriers DON'T want you to know and how pool distribution and retail consolidation can provide a faster, cheaper, greener alternative to LTL for smaller shippers. 

Filed under: Collaborative Distribution| Freight Transportation