Deciding on the right truckload can be one exclusive factor in procuring and shipment of your products. But, as transport managers, we often find it challenging to choose between a full-capacity truckload shipment and a less than capacity truckload-shipment. Here, we have created a comparative study between full Truckload VS Less-than-Truckload. Have a look to understand what can be beneficial for your shipment needs.
What are FTL & LTL Shipments?
The Indian logistics industry is worth around USD 160 billion and is likely to touch USD 215 billion in the next two years, per the Economic Survey 2017-2018. With the implementation of GST, the Indian logistics market is growing at a CAGR of 10.5 percent and employs more than 22 million people. Regardless of your business size, logistics is essential to your day-to-day operations, enabling you to leverage your existing supply chain more efficiently.
Efficient logistics and transportation can help you cut costs and at the same time, create time and resource utilities. With the varied shipping methods available, it sometimes becomes troublesome for companies to select the best option based on their requirement. For most on-road shippers, truckload shipping will be an ideal choice to move their cargo from one point to another, owing to its flexibility and affordability. There are two methods of truckload shipping available – Full Truckload VS Less-Than-Truckload.
FTL and LTL shipping differs in many key aspects, so it is pivotal to understand the differences that will help you make the ideal choice. Here is a basic primer on the differences between FTL and LTL shipping.
FTL shipping stands for full truckload, i.e., the shipment will take up an entire truck by itself. It is feasible when your freight can fill up a truck and has a one-stop destination. FTL shipments are primarily used when 10+ palettes need to be shipped. On the other hand, LTL shipping stands for less than a truckload, meaning that the shipment will not take up an entire truck. These types of shipments typically weigh between 100 and 10,000 pounds.
Full Truckload VS Less-Than-Truckload- What to choose?
It becomes an easy choice to pick FTL when you have large shipments. However, sometimes smaller loads can also benefit from FTL freight shipping. For instance, FTL may be a better option if your shipment is high-risk. Another advantage is that FTL shipments are intact in a primary truck during transit and are not transferred, lowering the risk of loss by damage. This method of transportation is quicker than LTL, as only one shipment is on board and there would not be multiple stops along the way.
Going ahead with an LTL shipment, you only pay for the used space of the truck. For example, if your shipment occupies one-third of the space on the truck, you only pay for that one-third space. The rest of the truck will be loaded with shipments from other companies, making LTL freight shipping an excellent choice for small businesses. However, the transit time of LTL freight shipments will often be longer due to the multiple shipments and frequent stops. If time is critical, you may consider FTL shipping.
Although FTL costs more than LTL shipping methods, it has many benefits for the shipper. As mentioned above, the shipper will not have to share truck space with another company. The truck can move directly to its destination without additional stops, creating a much more reliable shipping timeframe than LTL can offer.
The initial financial cost for FTL shipping becomes relevant when you compare it to the cost of breaking up your shipment into smaller units for LTL shipments. This makes FTL shipping an economical and reliable choice for shippers to process bulk shipments quickly.
We should remember that time is money, and if your product sits in the back of an LTL van for several days, your consumers will flock to your competitors. Shippers should leverage total truckload shipping to ship LTL shipments in the back of a full-size van or trailer.
“Wondering how? “
It boils down to knowing when you should put two and two to make four, with four being a full truckload and two being an LTL shipment. It makes sense to turn to the logistics and supply chain management solutions we currently have to maximize your buying power.
Set up a demo with us!