4 Important Factors That Impact Your LTL Freight Shipping Costs

15 May 2020
 Categories: , Blog

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If you have less than a full truckload of goods you need to ship, you will be engaging in less than truckload (LTL) freight shipping. With LTL freight shipping, there are four important factors that impact the overall costs to ship. Those factors are liability, handling, stowability, and density. When it comes to negotiating your LTL shipping costs, it can be helpful to understand the four important factors that impact your shipping costs to begin with.

LTL Freight Shipping Factor #1: Liability

The first factor that comes into play is the liability of your products. For example, any items that could be more susceptible to theft would increase the insurance premium the freight company has to pay to haul your items.

Additionally, any item that contains hazardous materials or chemicals that could result in a lethal accident or dangerous situation will increase the freight handler's insurance premium. These increased liability costs are passed on to you.

LTL Freight Shipping Factor #2: Handling

The second factor that impacts the cost is how the product has to be handled. There are actually eighteen different handling classes freight shippers use to classify and determine the degree of difficulty in handling and moving your products.

Handling difficulty is impacted by what product you are shipping and where they have to take that product. For example, a load that requires special equipment will cost more than one that requires no special equipment to load and handle.

LTL Freight Shipping Factor #3: Stowability

The third factor that impacts the cost of your freight is the stowability of your freight, which is basically how easy it is for the freight shipping company to fit your product in their trailer.

The less space your freight takes up, or the easier the shape of the package is to pack other items around, the less your freight will cost to ship. Oversized and odd-shaped cargo may cost more to ship, as it is harder to put other loads around it, an important consideration with LTL shipping.

LTL Freight Shipping Factor #4: Density

Finally, the density of your items matter. The density is the mass divided by the volume of your items. The lower the density of the product, the less it will cost to ship. Density matters, as freight shippers have to take into account not just the size of your shipment, but the weight.

When it comes to figuring out how to lower the cost of your shipments, you need to first understand the factors that impact LTL shipping costs. The liability, handling, stowability, and density of your shipment all factor into what you have to pay to ship it. Contact a shipping service to learn more.