Full truckload shipping
Full-truckload shipping is almost exactly how it sounds, it is when a full trailer is used to move a shipment. Shippers can have various reasons for choosing a full truckload and it comes with many benefits. This blog will provide insight on the benefits of shipping full-truckload as well as how rates are calculated.
Benefits of FTL Shipping
The main benefit of shipping freight LTL is the cost savings that come with it. Due to the freight only using a portion of a trailer, the cost will only reflect that part of the trailer. The overall cost is dependent on various factors but shipping LTL can create cost savings, especially when making small shipments frequently.
The next benefit of shipping FTL is the delivery time. Unike an LTL shipment, FTL shipments do not have multipe stops along the way. Once freight is loaded in the trailer, there is only one destination. This means that your shipment will be moved from pick-up to drop-off in one smooth trip, reducing risk and speeding up the delivery process.
As mentioned above, there is a reduced risk due to various factors when shipping FTL. When shipping LTL, freight is often moved around numerous times throughout the delivery process. Although rare, in some cases, skids can be damaged when being handled. Reducing the amount of movement of the skids can help mitigate any risk involved.
There is greater ease of use for the shipper when choosing FTL. FTL rates are calculated based on the use of a full trailer. As long as the skid count does not exceed the maximum capabilities of the trailer, then the shipment will be good to go. This can make booking a shipment more straightfoward.
When a shipment has enough freight to fill a truck, truckload shipping will be a more cost efficient option than LTL shipping. When shipping LTL, you are paying for the part of the trailer that you use. If you are able to fill an entire trailer, it many be more cost efficient to ship at longer intervals with a full trailer.
Common Factors that Impact an FTL Rate
The first indicator of cost is the distance that needs to be travelled. In most cases, the greater the distance, the greater the rate. There are cases where rates will be higher at lesser distances due to irregular lanes.
Type of Lane
High Volume Lane
In the shipping industry, there are lanes that trucking companies will dedicate trucks to. These lanes are typically routes where substantial amounts of freight are constantly moved through. Carriers know that they will be able to find freight for their trucks. Along with this, it is much easier to find freight coming back, reducing the risk of a truck returning empty, which maximizes profit potential per trailer.
High Volume Lane
The opposite of the high volume lanes is the more unique, low volume lanes. These are lanes that carriers do not frequently have trucks dedicated to and are usually less desired. These lanes that are less desired can come with higher costs. When shipping to a location that has few trucks available, carriers often charge higher per-mile rates. They have a lower chance of finding full loads coming back. This means they need to make up for some of that on the way to the destination.
Type of Trailer
The trailer type has an impact on the rate. Different trailers come with different costs and some are higher than others. Flateds and reefer trailers come with higher costs on average than a dry van. This is due to the extra processes that are involved with loading and driving a flatbed and reefer.
Supply and Demand
Like any business, supply and demand have an impact on rates. Trucking has busy seasons and lighter seasons. Shipping costs can fluctuate depending on the number of shipments needed compared to the number of trucks available.
Truckload shipping is an excellent option when moving freight and it can provide various benefits to the shipper. Having access to an entire trailers means that risks can be reduced and shipment times can be sped up. Our team at Wood-Hall Logistics can help answer any questions regarding what shipment type would be best for your business. Reach out to us at firstname.lastname@example.org or give us a call at 519-213-1000!
-The Team at Wood-Hall Logistics