Overcoming Seasonality: Adapting LTL Strategies for Seasonal Retail Surges

While less-than-trucking providers are important to retailers throughout the year, they are absolutely essential during seasonal shopping spikes. Without LTL shipping, consumers may not get all those little black dresses, large toy chests, or towering artificial Christmas trees in time for the holidays.      

And LTL providers want that retail freight. A Supply Chain Dive report said LTL carriers have handled more retail freight this year than they usually do because of “stagnant industrial demand.”

“LTL carriers closely monitor changes in freight mix for what it might mean for their businesses,” Supply Chain Dive said. “Some of the oldest and most successful carriers have historically adapted alongside demand as necessary while maintaining pricing discipline.”

Some successful carriers are also picking up the retail freight slack left by one of the oldest and largest — and now defunct — LTL trucking companies, Yellow, which declared bankruptcy and went out of business in the summer of 2023.

The ABCs of LTL Shipping for Retailers

Before you get started with LTL shipping, there are some things you should know.

• Defining LTL Shipping: In LTL trucking, multiple shipments are consolidated and hauled in one truck. In truckload shipping, the entire trailer is booked for one shipment.
• Cost-Efficiency: With multiple shippers sharing the space in one tractor-trailer, LTL can be a more cost-effective option for shipments that won’t take up an entire truck.
• Flexibility: “LTL carriers offer more flexible schedules and routes as they handle multiple shipments from different customers. This allows you to align your transportation needs with your specific timelines and requirements,” SeriousTruck.com said.
• Reduction in Inventory Costs: LTL shipping can help retailers reduce their inventory costs by enabling more frequent, smaller shipments so they don’t have to store large quantities of stock.
• Accessibility for Smaller Retailers: LTL levels the playing field, allowing smaller retailers access to the same national and regional distribution networks as larger companies. And because of its cost-effectiveness, LTL is a good choice for businesses that move moderate amounts of freight.
• Enhanced Tracking Capabilities: “LTL carriers typically have multiple checkpoints along their routes to handle various shipments. This reduces the risk of loss or damage during transit, as these shipments are carefully monitored and tracked throughout the entire journey,” SeriousTruck.com said.
• Customization Options: LTL doesn’t have the size and weight restrictions that parcel shipping does. “While parcel services are generally suitable for smaller and lighter packages, LTL can accommodate larger and heavier shipments, making it a preferred choice for businesses with bulkier freight,” SeriousTruck.com said. “Additionally, LTL offers more flexibility in terms of scheduling and pickup/delivery options compared to parcel shipping, which often follows a fixed route and schedule.”

Navigating Through the Peaks: Challenges in Seasonal LTL Shipping

U.S. retailers that didn’t bring in imports before the International Longshoremen’s Association (ILA) contract expiration on Sept. 30 or route goods to the West Coast dodged a bazooka when the port workers strike on the East and Gulf coasts lasted only a few days instead of a few weeks. Still, retail shippers face plenty of challenges during every peak season.

• The Capacity Crunch: Increased demand for consumer goods during the holiday shopping season, in particular, affects carrier capacity and can lead to LTL providers charging higher fees.
• Risk Amplification: Overburdened systems – and employees – can result in a heightened risk of cargo theft and damage during transit.
• Cost Fluctuations: Seasonal demand also impacts shipping rates and accessorial charges as LTL carriers know retailers must get their goods on the shelves for holiday shopping.

Leveraging Technology to Navigate Peak Seasons

“Adopting advanced technologies is transforming the LTL industry, driving operational efficiency and customer service improvements,” according to the Logistics & Transportation Review, which said that “data analytics and AI are becoming indispensable tools for LTL carriers aiming to optimize their operations and decision-making processes. By analyzing vast amounts of data, carriers gain insights into trends, patterns, and anomalies that impact their business.”

It added that “real-time tracking systems provide customers with up-to-date information on the status and location of their shipments. This transparency builds trust and allows customers to manage their supply chains more effectively. Enhanced visibility helps proactively resolve issues as customers and carriers quickly address delays or disruptions.”

Mastering Rates and Capacity in Seasonal Peaks

LTL shipments typically are placed on pallets to make loading and unloading easier and to keep similar products together. An LTL shipment usually consists of one to six pallets of goods together weighing no more than 15,000 pounds.

At any time of the year, size and volume are the two biggest factors when determining the cost of an LTL shipment. National Motor Freight Traffic Association freight classes must also be taken into account.

“Fragile, high-value items (like consumer electronics) tend to fall into higher categories than easy-to-transport, low-cost, sturdy items like building materials,” ShipEngine said. “Sometimes shippers negotiate a way to combine items falling into different classes within a single class. This agreement is called a Freight Of All Kinds (FAK) agreement.”  

Regardless of the freight class and volume, retail shippers should work to secure sufficient LTL capacity before peak season to keep rates manageable. That can be accomplished by partnering with a trusted and proven LTL carrier throughout the year.

Minimizing Transit Risks for Retail During Peak Seasons

Shippers should work with LTL carriers that:

• Provide a high level of service and are available when you call 24/7/365.
• Employ best practices for reducing transit damage through specialized packaging options and handling techniques tailored for fragile and high-value retail goods.
• Mitigate risks of cargo theft and logistical delays, which are prevalent during seasonal surges, by utilizing technology to both enhance security and streamline operations.
• Use flexible shipping strategies to quickly respond to changing market, capacity, and weather conditions.
• Proactively plan to effectively manage the impact of seasonal demand spikes and supply chain disruptions.  
• Have strong relationships around the country with stakeholders throughout the supply chain.
• Adapt to evolving consumer expectations and technological innovations that continue to transform the LTL shipping landscape.
• Have proven experience. They’ve seen it all and know how to provide solutions to even the toughest challenges.
• Stay ahead of the competition with the latest tech tools, superior logistics planning abilities, and top-notch customer service.

VCPB Transportation checks all those boxes and more.  

VCPB Has Strategies in Place for Seasonal LTL Peaks

At VCPB Transportation, we offer LTL shippers lower costs, faster transit times, and options that meet their unique requirements. With decades of experience and an unrelenting commitment to excellence, we are the LTL partner shippers can trust every time.

We are:

• Masters in LTL rate negotiations. We know the ins and outs of LTL rates, so shippers can trust they are not overspending.
• Experts in optimizing LTL transit times. Our approach to carrier selection and route optimization is designed to enhance the timeliness of LTL deliveries.
• Providers of real-time tracking. We constantly monitor your shipments using our state-of-the-art tech stack.
• Communication pros. With our team and our technology, shippers always know what’s going on with their LTL shipments.
• Always there with capacity. Our extensive carrier network gives us ample access to LTL providers, even during seasonal retail surges.
• Focused on damage prevention. We emphasize LTL-specific packaging and handling guidelines to significantly reduce the risk of damage during transit.

We are also experts at transporting perishable goods for retailers selling food and produce. By utilizing the latest technology in temperature-controlled shipping, we ensure both domestically grown and imported fruits and vegetables are delivered in pristine condition every time.

At VCPB Transportation, we have the skills and resources to handle LTL and produce shipments, as well as cross-border and expedited moves, transloading, drayage, intermodal, over-the-road, and overweight and oversized freight. Whatever it takes, we’ve got you covered. Start shipping with VCPB today.