Written by Christopher Doiron for ByExpress Logistics
Today I’m going to help you understand how to price out your Less-Than-Truckload shipments.
I remember when I first started at ByExpress, I’d call carriers trying to find the best rates and was met with questions I couldn’t answer immediately. There is a lot to consider when shipping your LTL commodities and it can be confusing and frustrating.
This short guide will give you an overview of everything you need to know when contacting a carrier or broker while you’re trying to get rates for your shipment.
The Topic Overview
What is an LTL shipment and how do you price it?
As indicated by the image above, an LTL shipment or Less-Than-Truckload is any commodity that takes up less than 6 skid spots and is under 10,000 lbs. in a trailer.
For example, if you have a furniture store and are selling couches, each couch going out to a customer would be considered an LTL shipment.
Of course, if you’re shipping a small box with candles, this would fall into the category of parcels. You should be shipping this with a courier like Purolator, not a carrier or freight broker.
Step #1 : Lanes
First, determine the pickup and drop off location of your shipment. It’s best to have postal codes, if not, a full address ready. This will help your broker find the right lane, meaning the common transit path between cities and terminals for your shipment to travel.
Step #2: Dimensions and Weight
Next, we need to consider the freight class. Heavy and compact shipments have a lower freight class versus their large and light counterparts. Keep in mind that the lower your freight class is, the less you pay.
Therefore, most situations will result in your shipment being calculated in dimensional weight, which is the ratio of weight to volume measured as per cubic foot. The lower the dimensional weight, the better.
Step #3: Accessories
Also, you may require a tailgate if you do not have a dock on the origin and/or destination. Requesting a tailgate, appointments, limited access, and other pickup/delivery challenges will likely increase rates. It’s important to try visualizing the truck showing up and working with your broker to determine if there are additional services needed
Step #4: Special Handling
Lastly, it’s always very important to think about hazardous products, chemicals, and food. Special handling doesn’t apply to a couch but would certainly apply to most paints and solvents. Be prepared to have the MSDS and UN number ready if your commodity is dangerous, a chemical, smelly or otherwise.
Bonus Step: Rebills
This is a subject not often spoken about, but nearly the most important of them all when securing rates. A rebill is when the carrier acknowledges a change in the original specifications or conditions which call for an increase in the rate mid-transit.
Examples of this include:
Conclusion
Pricing out your freight is relatively easy when you understand the basics of what your commodity is, where it’s going and how it needs to be handled on the way there. If you follow these 4 easy steps above, getting rates for your shipment will be infinitely easier!
As you can see, it doesn’t take much to get a better understanding of the situation and because this is your product, you know it best!
Before you embark on your shipping journey, be sure to give ByExpress a call because we have brokers who can guide you through this process and give you live quotes on your shipment. We move everything worldwide and have helped thousands of small business owners move their product from suppliers, right into the hands of their customers!
