Wednesday, July 23, 2014

Understanding LTL Shipping Rates

When looking into global logistics it should be noted that less than truckload shipping is growing in popularity.  Shipping smaller orders around the world is less expensive and quicker than using other modes of shipping freight.  When thinking about less than truckload shipping it is best to look at it as a way to transport like items in small quantities from a variety of different locations at a cost savings to business owners.  Bringing together small shipments of like kinds of goods saves time and money.
When calculating the rates in less than truckload shipping consider the total miles that will be covered as well as a fuel charge.  LTL shipping rates use a rate/mile basis and fuel charge to determine the rate in which shipments are sent.  Understanding this along with some of the other factors that can influence LTL shipping rates is useful in helping to save money on logistics here and abroad.
Base rates are taken into consideration when it comes to LTL shipping.  This rate is most often determined based on every one hundred pound shipped.  This rate will vary from one LTL provider to another. The CWT, or Centum Weight is calculated by looking at considerations such as the type of freight, the distance traveled and the total weight that is being shipped.  Carriers will modify and shift base rates annually.
The National Motor Freight Classification, commonly referred to as the NMFC classifies freight based on type and weight.  The NMFC has based at least eighteen classes of freight based on liability, product density and the type of special handling needed to ship the specified freight.
The type of freight being shipped also helps to create the cost associated with shipping LTL.  The carrier and customer will enter into an agreement based upon the type of freight to be shipped.  The agreement is made to help clients that send multiple consignments or items which in the end reduces the expense by a considerable extent.  The more a customer ships with a certain carrier the more reasonable the rate will be overall.
The distance shipments have to travel are also factors in less than truckload shipping.  The more miles that need to be covered the more expenses carriers acquire and therefore affecting the cost to ship. 
When it comes to shipping and global logistics take into consideration the different factors that come into play in the rates that are charged for goods to be shipped.  Knowing and understand these key factors will help you to negotiate the best rates possible in LTL for your company.  
Jefferson Diversified Group, LLC is a Global Logistics expert offering LTL shipping and more. Check out available rates today at