Moving your goods and inventory at the best possible price is a big part of any company’s business plan. Whether it’s transporting freight within BC or across Canada into Alberta, Ontario, and Quebec, LTL shipping definitely has a place when it comes to reducing shipping costs. Let us dive into the specifics and what to expect when shipping LTL in Canada.
What does LTL stand for and why would anyone pick LTL over FTL?
LTL stands for Less than truckload shipping and is ideal for relatively small shipping loads. This process involves multiple shippers sharing the space and cost of a truck.
Even though FTL (full truckload) shipping has many benefits including a relatively lower volume unit charge and the ability to schedule more regular shipments, choosing FTL shipping doesn’t make sense for a business’s bottom line when you’re not fully utilizing every inch of space. Wasted space translates to unnecessary costs. This is where LTL shipping comes into play and becomes the superior choice.
LTL shipping exists because not every business can fill an entire truck every time and it’s not efficient to purchase an entire truck for smaller volume freights.
However, LTL doesn’t always translate to higher unit costs and there are many benefits to this shipping method. Businesses can utilize LTL shipping for relatively closer destinations and distances spanning from Vancouver to Edmonton, Toronto, Mississauga, or even Montreal, Quebec City, and Dorval.
3 Things to Expect When Shipping LTL:
1. LTL shipping is most likely going to take longer than FTL shipping
The main reason for this is that there are multiple stops involved in LTL shipping. Cargo from different shippers are involved and stops are made at every customer’s starting location and destination. This means that it will take longer for a shipment to arrive when compared with FTL’s logistics of simply moving from point A to point B.
LTL shipping also involves the need to follow a very well-planned schedule in order to be effective. Unlike FTL shipping, the truck does not only cater to a single party’s needs with no effect on anyone else. There are designated times for pick up and deliveries and delays can result in cascading costs for all. Hence, businesses understand, agree, and follow planned pickup times systematically in order to ensure maximum efficiency.
2. If managed effectively, LTL can save you money.
The most important factor in minimizing cost is to always do your homework. This involves having the right business partners working with you and asking the right questions well ahead of time. Having a solid relationship with your shipping partners not only means that you’re getting the best pricing but their advice and expertise as well. This is especially important when every industry has been weathering through extreme shipping challenges for the past few years.
You may hire an entire truck for a small shipment if the contents are delicate or sensitive, but the overall costs of FTL shipping will be much higher. If timing is flexible and your cargo isn’t as urgent, LTL shipping is a great fit.
3. Costs are going to fluctuate.
Shipping costs are never fixed and can sometimes vary even week by week or month by month.
A few factors come into play when it comes to the cost of freight. The weight and classification of your goods as well as the distance that your goods are being shipped to and whether there are special considerations needed for your cargo also play an important role in determining pricing.
A few factors that also affect the price of LTL shipping includes:
- The Price of fuel: Fuel charges is what it costs to fuel a vehicle. This fluctuates every week and is tied directly to the price of diesel.
- The Weather: Shipping in the winter may require quite a bit more time when compared to summer.
- The Season: Shipping during the holiday season is always more expensive. This is also coupled with delays as demand is very high.
From LTL/FTL services to bonded sufferance warehousing, our fleet of 250+ trailers and an extensive range of trucks is here for you. As an industry leader in Metro Vancouver with over three decades of experience and authorized access to Canada’s largest port, you can count on our team to manage your transportation needs throughout Canada. Contact us today at (604)-276-9044 or info@sandhartrucking.com. We would love to help you reach your business goals this year.