Common – and New – Challenges in LTL Shipping

Less freight actually can mean more headaches. When shippers don’t have enough freight to fill an entire trailer, they usually opt for less-than-truckload (LTL) transportation. But that typically means the freight will be handled several times during transit, which will take longer than direct full truckload because of multiple stops. And there are more opportunities for goods to be damaged.

LTL shipping can be less of a hassle — and less risky — with a transportation and logistics partner with the experience and expertise to get your freight where it needs to go, when it needs to get there, and in perfect condition. ‍

Classification Changes Create New Challenges

LTL shipping has been around for more than 100 years, but forthcoming classification changes are shaking things up. And shippers are needing help understanding what those changes mean for them.  

Taking effect July 19, the National Motor Freight Classification (NMFC) overhaul “could significantly impact your operations if not properly understood,” according to Holly Taylor, director of product for the National Motor Freight Traffic Association (NMFTA). 

Freight class, the standard used for LTL shipments, is based on such factors as the product’s size, weight, density, handling, stowability, and liability. 

“For example, a low-density, bulky, and fragile shipment may cost more to transport than a denser, more compact, and durable item due to the extra space it requires and its higher risk of damage,” Taylor explained. “Misclassification of this shipment could result in over or undercharging, leading to a financial loss and a dispute with your carrier.

“Accurate classification not only impacts you but your carriers as well. And, if they’re not happy, you’re not happy.”

There likely will be some unhappy shippers and carriers as the updated system is rolled out. “It is the biggest change in classification in the history of classification,” NMFTA COO Joe Ohr acknowledged. 

Shipment costs for the lightest and least dense goods could increase by as much as 97%, according to Trucking Dive, which said “as LTL carriers are primarily paid by the weight, that’s intended to account for the space they take up on a carrier’s trailer without much weight.” 

Bigger and heavier shipments, on the other hand, will cost less under the new classification system. For example, a shipment with density of more than 50 pounds per cubic foot will cost 50% less than it did under the old system. 

In its guide to implementation, the NMFTA said it expects the freight classification changes to streamline workflows and enhance visibility. It said the changes “reflect the current state of LTL freight transport. Together with the industry, NMFTA is focused on creating a classification system that simplifies where needed, clarifies where helpful, and enhances efficiency throughout the process.” 

Understanding the Common Challenges in LTL Shipping

Understanding LTL freight classification has been a challenge since it was rolled out in 1936. But there are common challenges in LTL shipping beyond the complicated pricing structure. 

Capacity Constraints and Fluctuations

• Seasonal demand spikes and capacity shortages pose problems for shippers trying to restock inventory.
• Finding reliable carriers can be daunting. Shippers shouldn’t trust fragile freight to a carrier selected by picking a name out of a hat. 

Freight Damage and Handling Issues

• Increased handling during transit means a higher risk of freight damage.
• Improper packaging and loading make damage even more likely. 

Limited Visibility and Tracking

• Fragmented tracking systems and lack of end-to-end visibility leave shippers wondering where their goods are.
• Proactively addressing delays or disruptions gets more complicated with multiple carriers and multiple stops. 

Operational Inefficiencies

• Coordinating multiple shipments, routes, and schedules is complicated and can result in inefficiencies.
• Those inefficiencies increase costs and transit times — and can result in lost business.

Partner with an Expert to Overcome LTL Shipping Challenges

VCPB Transportation is fully versed in the freight classification changes coming down the pike and stands ready to help shippers navigate the revamped system. We provide LTL shippers with:

• Expert guidance on proper packaging and handling requirements.
• Transparent and competitive pricing.
• A robust network of fully vetted reliable carriers.
• Expertise in optimizing routes, consolidating shipments, and reducing transit times.

• Advanced technology to provide real-time tracking and updates.

When you need LTL shipping services, we nail it with lower costs, faster transit times, and options that meet your unique requirements. But no matter whether you’re shipping LTL, expedited, produce, or cross-border, VCPB has you covered. Start shipping with VCPB.

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