Introduction

In the world of logistics, the intricacies of Less-Than Truckload (LTL) freight can often be overlooked. However, for those in the know, LTL represents a critical aspect of supply chain management, offering a cost-effective and efficient way to transport shipments that don't add up to a full truckload.

While competitive rates remain essential, LTL carriers must distinguish themselves through reliable pickup and delivery, low claims ratios, and customer-centric operations to be successful with shippers. while multiple LTL carriers have acquired the late YRC terminals, those carriers should be leveraging those acquisitions to enhance service offerings and geographical reach, catering to evolving customer demands. Service reliability is paramount, especially in the dynamic market environment where customer expectations continue to evolve.

Navigating Pricing Models

Aligning pricing strategies with customer needs and network capabilities is an extensive task as pricing models in the LTL industry require detailed consideration. Many LTL carriers are urging shippers to transition from blanket rates to customer-specific pricing. While blanket rates offer simplicity and broad coverage, customer-specific pricing allows for tailored solutions and greater flexibility. Moreover, the emergence of dynamic pricing presents opportunities for carriers and shippers to optimize costs and capacity management. By leveraging dynamic pricing, LTL carriers can provide competitive rates while adapting to market changes and customer demand patterns. 

GRI Challenge

Last year’s general rate increases (GRIs) by LTL carriers were higher than normal, with the industry average being between 6 and 7%.While General Rate Increases are inevitable in the LTL industry, successful LTL carriers strive to minimize their impact by focusing on service differentiation, network optimization, and dynamic pricing strategies. Shippers should prioritize working with LTL carriers who communicate transparently and engage proactively when it comes to GRIs. By fostering collaborative relationships with partners like Mariner, LTL carriers can navigate market uncertainties and deliver value-added solutions that meet customer expectations.

Empowering Shippers: LTL Knowledge & Awareness

The greatest way to empower shippers so they can effectively use LTL shipping services is through education. Collaboration between LTL carriers, 3PLs, and shippers is key; If one party doesn't understand the general necessities of LTL shipping, success is not a guarantee. For example, shippers MUST know and share their shipment dimensions with their 3PL or LTL carriers. Incorrect dimensions or guesstimates lead to more claims, delays, and inaccurate pricing.

"That's one of the things that differ between truckload and LTL truckload. You ordered a truck, you fit everything in the truck, obviously, and the weights are important. But, in LTL, you're getting specific, specific space in that trailer. And you know, overlength is super important, very expensive, because it takes up the space, you're taking away space from other customers." - Eric Burke, LTL Specialist

Conclusion

As the LTL industry evolves, collaboration, innovation, and customer-centricity remain key drivers of success. By embracing change, prioritizing service excellence, and educating shippers, LTL carriers can create successful relationships with their customers and shippers will be better equipped to optimize and control their supply chains.