The sector of less-than-truckload (LTL) has an estimated value of $65 billion a year in the United States. Roughly 165 million LTL shipments are moved by trucking and logistics providers like Titan Transline across all of North America. However, it is apparent that LTL is often compared to the more efficient and larger truckload industry.
When comparing key service parameters, LTL on-time delivery rate is only 50%; whereas, full truckload has 96% delivery rate. LTL’s pick-up rate is at 70% while the full truckload sector has achieved more than 96%. Additionally, freight moved through LTL is 18 times more likely to be damaged.
In order to bring higher quality to the LTL segment, shared truckload has been introduced. This is a concept where freight that is shipped through LTL is pooled together and sent via full truckload. Freight from different shippers is aggregated together in a full truckload trailer and arranged based on the first come, last out system. This will ensure that the freight that was loaded last will be unloaded first to prevent other cargo from disturbed during the journey.
The LTL freight industry usually moves through the hub and spoke model which is more expensive to operate. If freight from different shippers is aggregated and shipped together, high capital expenditure will be avoided. Besides that, the simplicity and higher quality of full truckload will be shared to the LTL shipper.
In the traditional market that relies on supply and demand, demand comes from LTL while supply comes from the full truckload sector. The cost of moving a truckload of LTL freight is about half the cost of moving the same freight through conventional LTL. It is expected that shippers will be willing to pay the prices required by LTL as long the shipment is moved through shared truckload within a full truckload container. Service quality will be higher as well as hauling efficiency.
Both LTL and full truckload are offered by Titan Transline for your goods. Accurate tracking and real time reporting will ensure that your goods will arrive on time at their highest quality. LTL shipments that are handled include small volume loads, ecommerce shipments, manufacturing supplies, dry goods like textiles, temperature-controlled goods, etc.