Freight Pricing Simplified

Freight pricing is a bit confusing especially when it comes to less than truckload companies. LTL companies use a variety of methods to determine the price to charge for your shipment. The most common way this is done is using freight class. Rules and guidelines are in place for the trucking industry to use to determine the classification of shipments. This directly affects how much you pay to ship an item.

Not only does the classification on your shipment affect how much you pay so does the shipments density. Density is calculated by determining how many pounds per cubic foot your shipment is. This allows the carrier to figure out how many other shipments can also be put on the truck. Less than truckload companies load several LTL shipments onto one truck to make a full trailer. The lower the classification of your shipment the less it will cost to ship.

Another factor that helps determine what you are charged is the items likelihood to be damaged. Fragile items or items with a lot of bulk fall into freight classes between one hundred twenty five to five hundred and account for most expensive shipments. Your service provider is knowledgeable in these differences and will assist you in figuring out the freight class charge of your shipments.

Some brokers are granted “Freight All Kinds” pricing with certain carriers that they contract with for LTL shipping. This means that higher classed items are shipped at lower cost classification. The only way an individual shipper can benefit from this is to ship though a broker such as those you can find online. Trucking companies do not offer direct discounts to private individuals.

Shipping a full truckload is usually calculated by mileage. The company figures in all the factors such as operating costs per mile as well as a markup that adds up to the amount you pay. You will realize bigger logistics savings when working with a freight broker. Brokers work with many trucking companies and can instantly shop for the best price to send your shipment. Freight brokers can always work out a better deal than you can as a private shipper. Dealing directly with shippers is more expensive by upwards of fifty to eighty five percent over what brokers can negotiate. The most private shippers can negotiate is usually five percent.

When choosing a broker to work with to handle your shipments look for other qualities other than a low price. Find a broker that only works with trucking companies that have the same customer service values as you do. Work only with freight who work with shippers that value on time shipments and consistent quality service.

Jefferson Diversified Group, LLC is a Global Logistics expert offering LTL shipping and more. Check out available rates today at http://www.detroitltl.com.

4 LTL Shipping Tips To Improve Freight Carrier Relationships

Following the rules of less than truckload freight shipping is the most important thing you can do to make sure you maintain a positive relationship between shipper and carrier.  The tips below will help to ensure you continue to improve your relationship with your LTL carriers while helping yourself reduce costs and improve the shipping efficiency of your company.

Don’t Falsify Freight Weight: When it comes to creating a relationship with an LTL carrier one of the biggest mistakes you can make is to falsify the weight of your shipments.  It is important to accurately report all of the cargo’s correct weight.  This information is critical to less than truck load freight carriers as incorrect reporting of weight increases the expenses on their end.  Note that LTL shippers re-weigh eighty percent of their freight as this is the key element to keeping down their expenses and improving their efficiency.

Accurate Bill of Lading:  Decrease the errors in your transportation mananagment system by automating the intergration of your address and commodities books.  Accurate bill of ladings are important for carriers.  LTL carriers are becoming increasing aware of inaccuracies and are working to prevent them.  You can imporve your reputation with your frieght carrier by providign an accurate bill of lading each and everytime you ship a less than truckload shipment.

Lessen or Avoid Accessorial Charges:  Accessorial charges are the fees charged for extras such as residential services, lift gates, set appointment deliveries and more.  In parcel shipping there is a great deal of accessorial charges whereas in LTL shipping there are around fifteen.  When the load capacity is tight many shippers will choose the shipments with less accessorial charges as these are the things that slow the pickup and delivery of shipments.

Properly Packing Your LTL Shipments:  It is important that your shipments are packaged correctly to travel via the mode of transportation chosen by you and the LTL carrier.  If a shipment is not packaged correctly the shipper will have to repack it to prevent damage.  This takes away from the carrier’s efficiency.  If a shipment is packed improperly it can drop off the forklifts when being transferred damaging the contents thus creating more work for both you and the carrier.  This can all be avoided with proper packaging.

By abiding by these simple tips when shipping freight with a LTL carrier you can greatly improve the relationship between you and the carrier.  Following these basic tips will allow you both to improve efficiency and reduce costs.

Jefferson Diversified Group, LLC is a Global Logistics expert offering LTL shipping and more. Check out available rates today at http://www.detroitltl.com.