Considering efficiency and highest profitability, many freight and shipping companies will not schedule a delivery unless the truck is fully loaded. Otherwise, they are wasting valuable space that could translate into business profits. Recently, however, there has been an increase in LTL freight companies. In fact, the LTL market is estimated at approximately $35 billion. There are many advantageous reasons to consider adding LTL freight services to a shipping carrier.
To increase business
When you do not accept less than truckload shipments, you are not able to work with many smaller businesses. With small businesses growing and becoming more present in our world, you could be missing out on a huge business area. These businesses are not yet large enough to fill entire truckloads but could be one day. When you combine multiple smaller businesses into your business plan, profits could be significantly increased. It is also possible to combine many smaller businesses into the same trucking deliveries, eventually filling many of the shipment trucks.
To employ more drivers
The trucking industry is huge. In 2013, trucking transported nearly 15 billion tons of cargo. The Bureau of Labor Statistics reports that by 2040, that number is expected to increase to 18.79 billion tons. Although there are many full time trucking drivers in the industry today, there are many more that are unable to find employment. Increasing less than truckload shipments with pharmaceutical logistics can employ more drivers. Additionally, it allows trucking companies to better distribute shipments. Drivers today are often carrying large and heavy loads that can be straining and tiresome.
To reduce weight of truckloads
According to the U.S. Department of Transportation, the value of freight moved is expected to increase from $882 per ton in 2007 to $1,377 per ton in 2040. Along with an increase in value comes an increase in weight shipped. Shipping pharmaceutical logistics is much different than shipping heavier loaded items. Industrial machinery movers are one of the heavier items shipped. When trucks are too heavy, they are more prone to accidents and mechanical malfunctions. Depending on the route of the driver, the truck could also be too heavy to pass different state inspections and weight stations. Offering LTL services, however, allows truckers to better control the weight of their delivery trucks.
To increase shipment times
When the trucks carry less weight and there are fewer shipments to make, the shipment time can be decreased. We currently live in a world where both consumers and businesses expect their products as quickly as possible. Expedited freight can be difficult to arrange when the loads are too heavy or the trucks are too full and many stops are made. This is especially useful in trucks carrying lighter loads, such as pharmaceutical logistics. The lightweight of the product and the smaller truckload allows for significantly improved shipment times.
To increase shipment rates
Many trucking companies do not want to offer LTL shipments because they feel like they are missing out on profits. However, you will also find that many businesses are willing to pay the LTL freight rates. These smaller businesses struggle to even find a business that will offer them shipment and because of this, they will pay a premium shipment price, hoping to expand and lower shipment prices later on.
LTL shipments are becoming more common in the trucking industry today. Trucking companies are learning that there are actually many advantages to providing less than truckload services. They can increase shipping speed, increase overall business services, and reduce truckloads, all while charging an increase LTL shipment price.
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