LTL shipping is a huge form of transportation in the world of freight. It is vital in the supply chains of many shippers that don’t send large batches of freight out regularly but need to cut costs as much as possible.
If your company is looking into a trucking company in Houston, TX, but you haven’t heard of LTL shipping, it’s important that you understand this concept before moving forward with a carrier. LTL shipping might make freight transportation more cost-effective and easier for your team while delivering your product on time.
What does LTL shipping mean?
LTL shipping refers to “less than truckload” or “less than load” shipping. It’s used when a shipment does not require an entire trailer to move. During LTL shipping, multiple loads from different clients can be combined into a full truckload for transportation to one geographical area.
Shipping a load that is smaller than what a freight shipper can handle can result in you wasting money, because you’ll pay for the shipment without using all the available space. LTL shipping is a more cost-effective alternative and can also provide more control and flexibility to freight shippers.
LTL shipping rates are determined based on weight, distance, class of freight and fuel costs. There are also numerous “stops” involved in LTL shipping. First, a city trucker will drive around to the numerous shippers partaking in that particular shipment and pick up their loads. Then, the shipments will be offloaded from the city truck to another truck that will drive the freight to the destination location. After it arrives at its destination city, shipments are sorted and loaded onto another city truck to be delivered to their final destinations.
How LTL shipping has evolved over the years
LTL shipping has not always been the same important form of freight transportation in the United States as it is now. Shipping in general changed a lot around the 1930s, when the U.S. government began regulating the trucking industry under the Interstate Commerce Commission (ICC). These regulations restricted new trucking companies from entering the market by limiting their access to licensing. Additionally, new rules fixed prices. These regulations resulted in ineffective and very expensive shipping within the United States for over a decade. This created problems for both trucking companies and their consumers.
Unfortunately, nothing really changed in the industry until the 1980s, when The Motor Carrier Act of 1980 began the deregulation of trucking companies. The new act allowed for greater price competition and new trucking companies to enter the market. LTL rates, in particular, were affected by these changes, falling by around 20 percent.
Today, just a few major LTL shippers dominate the industry, with other smaller players playing major roles in more rural or regional areas of the country. The LTL shipping sector is a small component of freight shipping overall, but it still an important option for many shippers across the nation.
Rely on a pro LTL trucking company in Houston, TX
If you’re interested in hiring a company for LTL shipping in Houston, TX, call Pro Delivery LLC. We offer great service in the Houston area for flat rates. Call us today for a free estimate.
This post was written by Writer