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COACHES CORNER: Volume LTL vs. Partial Truck

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In today’s truckload rate environment, volume LTL and partial truck routing options become viable from both a cost basis and service standpoint. The lack of truckload capacity presents opportunities to reduce order quantities down to LTL-size shipments in order to find routing options. The options rest in both traditional LTL carrier routing and partial truckload options.

Partial Truckload vs. LTL

The challenge for LTL volume shipments is the LTL carrier guidelines defining the characteristics of an LTL shipment which may limit routing options. Key attributes for LTL volume shipment are formalizing the quote, understanding the service commitment of the carrier and cargo liability. Each of these three attributes may rule out LTL volume due to cost, the extended service standards and the lower cargo liability of the LTL carrier for Volume LTL shipments., COACHES CORNER: Volume LTL vs. Partial Truck

Depending on your shipping point, the partial truck may be available as a routing option giving you a more closely aligned service model found in traditional truckload service. Sourcing is the critical component to maximizing the usage of partial truckload as a mode. Shippers may utilize a non-asset provider to post available partial truckload shipments to identify available capacity. A partial truckload shipment will cost more than the allocated cost of a full truckload, and service is typically extended by 1 to 2 days. A critical factor to determine is the carrier operations as it relates to final mile delivery. Will the carrier deliver direct on the truck picking up the shipment or use a final mile carrier for delivery? How many other shipments are loaded with your shipment, and what is the expected route and expected delivery window? Questions such as these will ensure expectations are clear for both the shipper and carrier.

For more information regarding Volume LTL shipping please reach out to info@rockfarm.com or visit Stockwell International for additional information.

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Brad Stewart, President

By Brad Stewart

Co-Founder, CCO

Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena.  As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.

“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”

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References

Bill Mongelluzzo. (2020 September). Summer surge shows in US August imports from Asia.

https://www.joc.com/maritime-news/container-lines/summer-surge-shows-us-august-imports-
asia_20200908.html

https://www.ttnews.com/articles/rls-expands-national-network-gress-refrigerated-services
https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-
business/pmi/august/

William B. Cassidy. (2020 September). Loss of US truck drivers tightening capacity, raising rates.

https://www.joc.com/trucking-logistics/labor/loss-us-truck-drivers-tightening-capacity-raising-
rates_20200909.html

Ari Ashe. (2020 August). UP levying $3,500 surcharge on small ships out of LA

https://www.joc.com/rail-intermodal/class-i-railroads/union-pacific-railroad/levying-3500-surcharge-
small-shippers-out-la_20200820.html

https://www.overdriveonline.com/cargo-theft-numbers-rose-during-second-quarter-covid-slowdown/
Thomas Black. (2020 September). FedEx to Increase Peak Hiring 27% for “Unprecedented” Season
https://www.ttnews.com/articles/fedex-increase-peak-hiring-27-unprecedented-season

https://stockwellsinc.com/

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