WHAT ARE THE BEST MODE OF SHIPPING?

Shippers can select the best shipping mode to manage demand, cost, risk, and service, leading to a more efficient supply chain. An efficient supply chain is one that cost-effectively meets customer needs. With two-day (or less) delivery becoming the retail standard for customers, balancing cost and meeting customer expectations is no small feat for cargo companies and carriers. According to a recent study, 55% of consumers seek same-day shipping.

Despite recent advances in technology and automation, operational inefficiencies in the supply chain still impact the system. Finding out the proper shipping method is part of the challenge faced in today's supply chain. Shippers and carriers must work together to identify and facilitate the most reliable modes of shipping to keep everything smooth.

Every year, businesses in the U.S. spend an estimated $7 billion on truckload freight that ships with unused trailer space — the equal of five out of every 100 truckloads moving empty. This means that choosing the proper shipping method comes at a high cost and is highly important when contributing to an efficient supply chain. There are three standard modes of shipping:

1. Less-than-truckload (LTL),
2. Truckload (T.L.), and
3. Shared truckload (STL).

Each mode has its time and place and comes with benefits and risks. Less-than-truckload (LTL) shipping is beneficial for companies as it is cheaper than truckload shipping. Companies can divide shipping costs with other shipping freight on the same truck, making LTL shipping the more budget-friendly option. This shipping method can take longer to reach its final destination, but skilled transportation companies will work to pair shipments together on a truck-based on destination.

However, the standard LTL method uses the hub-and-spoke model to zigzag shipments between hubs and terminals during transit, increasing:

1. Handling (and damage as a result)
2. The probability of delays
3. Fuel emissions

T.L. shipping is when an entire truck is dedicated to one company's shipment. Typically, a company will use T.L. shipping if they have ten or more pallets, freight weighing over 10,000 lbs., high-risk loads, or time-sensitive shipments. While TL shipping is more expensive than LTL shipping, because a shipment stays on the same truck from point A to point B, it means a lower risk of loss or damage, which can be particularly important based on demand or type of goods being shipped.

Lastly, shared truckload offers a combination of LTL and T.L. STL benefits is best suited for partial loads of 8-40 linear feet. Since STL avoids terminals, loss and damage are minimized, while the shipping cost is lower than standard T.L. Additionally, STL delivers a similar experience maximizing filling truck space and avoiding empty truck miles, which is ultimately better for carriers and the environment friendly.