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Choosing the Right Strategy

Comprehensive Guide to FTL Shipping

Industry Insights / June 4, 2024

Introduction to FTL Shipping

When shipping large quantities of goods, your chosen method can greatly impact your budget, delivery times, and overall efficiency. FTL shipping (Full Truckload) is often the best option for transporting large, high-volume shipments that can fill an entire truck. Unlike Less Than Truckload (LTL) or parcel shipping, FTL offers exclusivity in transportation, meaning your goods are the only cargo on the truck. This results in faster delivery times and fewer handling risks. The advantages of FTL become particularly apparent when compared to LTL and parcel, where shipments are combined with others, leading to potential delays and increased risk of damage due to the handling of goods.

Understanding Your Shipping Needs

Choosing the right shipping method starts with a clear understanding of your logistics requirements. Here’s a detailed questionnaire to help you pinpoint your specific needs:

What is the volume of your shipment?

  • Consider whether your cargo can fill a truck. If yes, FTL is likely the most cost-effective and efficient option.

How often will you be shipping?

  • Is your shipping needs consistent or seasonal? Regular shipments might benefit from contractual agreements, while occasional shipments might require more flexible options.

Are there any specific regulations or compliance requirements for your shipment?

  • Certain goods, especially hazardous materials or pharmaceuticals, may require special permits, documentation, and handling procedures.

What are your delivery time requirements?

  • If you have tight deadlines, FTL shipping is generally faster than LTL due to direct routing.

What is the value of your shipment?

  • High-value shipments might need enhanced security measures and insurance coverage to protect against potential losses.

Are the goods you’re shipping fragile, perishable, or require special handling? 

  • FTL shipments often experience less handling during transit.

What is your budget for shipping?

  • While FTL may be pricier upfront, the added security and speed can justify the cost for certain shipments.

Do you have any flexibility in delivery dates?

  • If your delivery dates are flexible, you might benefit from cost savings by choosing less time-sensitive shipping options.

What are the access conditions at the pickup and delivery locations?

  • Ensure that the locations can accommodate large trucks and that there are no restrictions that could affect the delivery process.

Types of FTL Equipment

FTL shipping isn’t a one-size-fits-all solution. Here are the various types of FTL trailers catered to different shipper needs:

Refrigerated (Reefer) Trailer:

Reefer trailers are designed to transport perishable goods requiring temperature control, such as foods, beverages, pharmaceuticals, and chemicals. They can be equipped with options like dual refrigeration units, thermal curtains, and various power options to ensure the integrity of the cargo.

Flatbed Trailer:

Flatbed trailers are versatile and used for transporting large, heavy, or oversized goods like lumber, steel, construction equipment, and agricultural machinery. They offer easy loading and unloading from all sides and can be equipped with tarps, chains, and straps for securing cargo.

Single Drop Step Deck Trailer:

These trailers have a lower deck height, allowing for taller cargo that exceeds the height limits of standard flatbeds. They are commonly used for transporting machinery, agricultural equipment, and oversized loads that need extra vertical space.

Conestoga Trailer:

Conestoga trailers have a retractable tarping system that protects the cargo from the elements while allowing for easy access from the sides and top. They are ideal for transporting steel, lumber, and other materials that need to be protected but are difficult to load and unload with traditional tarps.

Removable Gooseneck (RGN) Trailer:

RGN trailers are designed for transporting heavy and oversized machinery, such as construction and agricultural equipment. The gooseneck detaches, allowing the front of the trailer to drop to the ground, creating a ramp for loading and unloading equipment.

Hotshot Trailer:

Hotshot trailers are smaller, often pulled by pickup trucks, and are used for urgent or time-sensitive deliveries of smaller loads. They are suitable for transporting lumber, steel, and small machinery, offering flexibility and faster transit times.

Dry Van Trailer:

Dry van trailers are enclosed, protecting from the elements for cargo that do not require temperature control. They are ideal for transporting a wide range of goods, including retail products, electronics, clothing, and non-perishable food items. Their enclosed nature makes them a versatile and secure option for general freight.

Double Drop Trailer:

Double drop trailers, also known as lowboy trailers, have two drops in deck height: one after the gooseneck and one before the rear wheels. This design allows for the transport of very tall and heavy loads, such as industrial machinery, construction equipment, and large structural components. The low deck height provides additional vertical clearance for oversized cargo that cannot be transported on standard flatbeds or step decks.

Preparing Your Cargo for FTL Shipping

Proper preparation can prevent many common shipping issues. Here’s a comprehensive checklist to ensure your cargo is ready for the journey:

Packaging and Securing Goods:

  • Use High-Quality Materials: Ensure that goods are properly packed using durable materials like reinforced pallets and heavy-duty shrink wrap to prevent damage and movement during transit.
  • Palletize Cargo: Stack goods on pallets to facilitate easy loading and unloading. Use corner protectors and edge boards to add stability.
  • Secure Load: Utilize straps, shrink wrap, and other securing methods to ensure the load remains stable. Consider adding anti-slip sheets between layers.

Weather-Proofing:

  • Ensure Weather Resistance: If using flatbeds or other open trailers, ensure cargo is adequately protected from the elements with tarps or weather-resistant packaging.

Labeling and Documentation:

  • Label Each Package: Clearly label each package with the destination address, contact information, and any special handling instructions.
  • Prepare Bill of Lading (BOL): Ensure the BOL includes accurate descriptions of the cargo, weight, and dimensions.
  • Include Packing List: Provide a detailed packing list outlining the contents of the shipment.

Inspection and Quality Control:

  • Inspect Goods: Conduct a thorough inspection of goods for any damage or defects before loading.
  • Document Condition: Take photos and document the condition of the goods prior to shipment for record-keeping and insurance purposes.

Load Planning and Optimization:

  • Plan Load Distribution: Distribute the weight of the cargo evenly to avoid overloading any part of the trailer.
  • Optimize Space: Arrange goods to maximize the use of available space, minimizing empty areas.

Special Handling Requirements:

  • Temperature Control: Ensure temperature-sensitive goods are packed in refrigerated trailers with the appropriate settings.
  • Hazardous Materials: Follow all regulations for the packaging, labeling, and documentation of hazardous materials.
  • Fragile Items: Use additional padding and secure fragile items to prevent damage.

Communication and Coordination:

  • Coordinate with Carrier: Confirm pickup and delivery schedules with the carrier and provide any necessary access instructions.
  • Emergency Contacts: Provide emergency contact information in case any issues arise during transit.

Compliance and Regulations:

  • Verify Compliance: Ensure all packaging, labeling, and documentation comply with relevant regulations and industry standards.
  • Customs Documentation: For international shipments, prepare all necessary customs documentation and declarations.

Final Check:

  • Double-Check Documentation: Verify that all paperwork, including the BOL, packing list, and any special instructions, is complete and accurate.
  • Review Load: Conduct a final review of the load to ensure everything is properly secured and ready for transport.

Seasonal FTL Shipments

Understanding seasonal shipping trends, the regions affected, and the types of Full Truckload (FTL) services impacted by rate increases helps shippers plan effectively and secure capacity during high-demand periods. By comprehending these diverse trends, shippers can better anticipate demand fluctuations and optimize their logistics strategies throughout the year. For a detailed seasonal FTL calendar, refer to our Seasonal FTL Shipping Calendar.

Cost Considerations

Understanding the breakdown of costs involved in FTL shipping can lead to significant savings. Here are some factors to consider:

Base Freight Rate

 The primary cost of transporting goods from the origin to the destination.

  • Distance: Longer distances typically result in higher costs.
  • Weight and Volume: Heavier and larger shipments may increase costs.
  • Lane: High-demand lanes may have higher rates.

Fuel Surcharge

Additional charges based on the current price of fuel are to account for fuel cost fluctuations.

  • Fuel Price Index: Changes in fuel prices can affect the surcharge rate.
  • Distance: Longer distances may incur higher fuel surcharges.

Accessorial Charges

Additional fees for services beyond the standard transportation.

  • Detention: Fees for delays in loading or unloading beyond the free time allowed.
  • Layover: Costs incurred if the driver must wait overnight due to delays.
  • Lumper Fees: Charges for hiring third-party labor to load or unload freight.
  • Liftgate Service: Fees for using a liftgate to load or unload heavy items.
  • Residential Delivery: Extra cost for delivering to a residential area.
  • Inside Delivery: Fees for carrying items inside a building instead of curbside.

Tolls and Permits 

Costs for tolls on toll roads and special permits for oversized or overweight loads.

  • Route: Tolls may vary based on the specific route taken.
  • Load Type: Oversized or overweight loads require special permits.

Insurance: 

  • Carrier Liability: Basic coverage provided by the carrier.
  • Cargo Insurance: Additional coverage purchased to protect the full value of the shipment.

Broker Fees: 

Fees paid to freight brokers for arranging and managing the shipment, typically a percentage of the total shipping cost.

  • Special Handling Charges: Additional fees can occur for transporting hazardous goods as well as refrigerated or temperature-controlled shipments.
  • Storage Fees: Charges for storing goods if there is a delay in pickup or delivery. Longer storage times incur higher fees. Costs may vary based on the storage facility.
  • Delivery Appointment Fees: Fees for scheduling specific delivery times. More stringent requirements may increase costs.

Tips for Saving on FTL Shipments

Optimize Load Planning:

  • Maximize Space Utilization: Efficiently pack and palletize goods to maximize trailer space. Properly organizing and stacking your cargo can reduce the number of shipments needed, thereby saving costs.
  • Consolidate Shipments: Whenever possible, combine smaller shipments into a single full truckload to take advantage of FTL rates, which are often lower per unit than multiple LTL shipments.

Negotiate Rates:

  • Long-Term Contracts: Establish long-term contracts with carriers to secure better rates. Consistent business can often lead to volume discounts and more favorable terms.
  • Compare Quotes: Obtain quotes from multiple carriers to ensure you are getting the best rate. Use rate comparison tools and freight brokers to find the most competitive prices.

Use Technology:

  • Route Optimization Software: Utilize advanced routing software to plan the most efficient routes, considering factors like traffic, road conditions, and tolls. This can significantly reduce fuel costs and transit times.
  • Freight Management Systems: Implement comprehensive freight management systems to streamline operations, reduce administrative costs, and maintain accurate records. These systems can also help in tracking shipments and managing invoices.

Schedule Flexibility:

  • Avoid Peak Times: Schedule shipments during off-peak times to benefit from lower rates. Carriers often charge less during times of lower demand.
  • Flexible Pickup and Delivery Windows: Providing carriers with flexible windows can help reduce detention and layover fees, as they can better optimize their schedules.

Reduce Accessorial Charges:

  • Prepare for Loading/Unloading: Ensure that goods are ready for loading and unloading to minimize detention fees. Having everything prepared can save significant time and costs.
  • Communicate Special Requirements: Clearly communicate any special handling needs in advance to avoid unexpected charges. This includes specific instructions for fragile or hazardous materials.

Monitor Fuel Surcharges:

  • Fuel Efficiency Practices: Implement practices to improve fuel efficiency, such as maintaining proper tire pressure and reducing idle time. These practices can lower fuel consumption and associated costs.
  • Hedge Fuel Costs: Consider fuel cost hedging strategies to manage fluctuations in fuel prices and stabilize shipping costs over time.

Review and Audit Invoices:

  • Check for Errors: Regularly review and audit invoices for accuracy to avoid overcharges. Errors in billing can often be corrected if caught promptly.
  • Dispute Incorrect Charges: Dispute any incorrect or unjustified charges promptly. Maintaining accurate records and having a clear process for handling disputes can save money and prevent overpayment.

Leverage Relationships:

  • Build Strong Carrier Relationships: Develop strong relationships with carriers to negotiate better rates and receive priority service. Good relationships can lead to more reliable and cost-effective shipping solutions.
  • Use a Freight Broker: A reputable freight broker can help you secure competitive rates and manage logistics more efficiently. Brokers often have access to a larger network of carriers and can negotiate on your behalf to find the best deals.

Technology in FTL Shipping

Technology plays a pivotal role in enhancing the efficiency and reliability of Full Truckload (FTL) shipping. Modern FTL operations leverage advanced tools such as transportation management systems (TMS), which streamline the planning, execution, and optimization of shipments. GPS tracking and telematics provide real-time visibility into truck locations, allowing for better route planning and timely updates. Electronic Logging Devices (ELDs) ensure compliance with hours-of-service regulations, enhancing safety and productivity. Additionally, digital platforms and mobile applications facilitate seamless communication between shippers, carriers, and drivers, improving coordination and reducing administrative burdens. By integrating these technologies, FTL shipping becomes more efficient, cost-effective, and responsive to the dynamic demands of the logistics industry.

Conclusion 

Full Truckload (FTL) shipping is a highly efficient and reliable method for transporting large shipments. By reducing handling, speeding up transit times, and enhancing security, FTL shipping helps businesses optimize their logistics operations.

Understanding the different types of FTL equipment, associated costs, and proper cargo preparation are key to ensuring smooth shipments. Advanced technologies like Transportation Management Systems (TMS), GPS tracking, and Electronic Logging Devices (ELDs) improve efficiency, route planning, and compliance, making FTL shipping adaptable to industry demands.

To save on FTL shipments, businesses can optimize load planning, negotiate rates, and use technology. Proper preparation and choosing the right FTL equipment prevent common issues and ensure safe transport.