Less Than Truckload Research Paper

Improved Essays
Less Than Truckload (LTL) freight shipping is available when you need to ship more than is appropriate for package services but less than a full truckload. This is typically used by companies, not individuals, to save money on shipping costs. Costs are influenced by a number of factors. Here are some of the most relevant factors;

Weight Generally speaking, the higher the weight, the lower the cost per 100 pound increment. However, there are cutoff points that can sometimes make it more cost effective to send just a little bit more in the shipment. The reduction in costs as weight rises is stepped, not sloped. This makes it a bit complicated to understand.
Density
The density is determined by dividing the total weight by the total cubic feet.
…show more content…
Freight that is dense, hard to damage and easy to handle is cheaper to ship and classified accordingly. Freight that is easier to damage or harder to handle or otherwise more difficult to deal with is classified differently and the charges are higher. There are many classes of freight. The complexity of freight classification adds to the difficulty in estimating what you will be charged. If you want to get a handle on freight costs, you need to learn a bit about freight classes.
Distance
Generally speaking, the farther it travels, the more it costs. Such costs are also influenced by whether or not the shipment needs to be handed off to a different carrier at some point. It can help find out if it there is one carrier that covers the entire distance in question. Different carriers cover different areas. Finding one that can take the shipment without handing it off to anyone else can reduce costs.
Minimums
Small partial shipments are not cost effective for the carrier, so there is a minimum charge applied below which they will not go. They just cannot make any money if they drop too low. Minimum charges help ensure that they can afford to take partial

Related Documents

  • Improved Essays

    Hrm 531 Week 9 Final Paper

    • 1404 Words
    • 6 Pages

    The United Parcel Service operation is affected by governmental action and political challenges and therefore, determine the company’s financial standing through opportunities and threats. A direct implication is through the transportation operating costs provided to customers. The courier company allocates shipping expenses among big competitors such as Federal Express (FedEx) and DHL. The government creates the rules and dictates to a certain extent the standards of each competitors. Periodically, the government will modify these rules and standards convincing companies to change the way they work.…

    • 1404 Words
    • 6 Pages
    Improved Essays
  • Decent Essays

    Closetbox Research Paper

    • 434 Words
    • 2 Pages

    Simply let Closetbox know what you need and when you need it. Having your items delivered for free -- how’s that for first-class customer service from a storage facility?! 5. Sensible Fees “Pay only for what you store” is the Closetbox maxim. At Closetbox, when you don't fill up the entire storage space, you aren't charged the full space rate.…

    • 434 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Lss Team Case Summary

    • 207 Words
    • 1 Pages

    LS Team, On Monday, February 1st, Old Dominion will implement their annual LTL increase. Initially this carrier was asking for as much as 25% in some lanes in order to target light density freight and the overall impact would have been around 8.5% . Nevertheless, this was not acceptable as most of our WHSE clients with light freight profile couldn’t take that type of increase and its believed that these types of clients would simply move their product out of the WHSE as a solution against this types of pricing changes. After a successful trip to the ODFL Corporate Office in North Carolina, we were able to negotiate this increase to a more balanced impact to all our customers from all WHSE’s across all our lanes from this 8.5% to 3.5%…

    • 207 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Cpt Case

    • 1591 Words
    • 7 Pages

    5 % decrease in Units Packed per Hour (UPH) for both singles paths. Without the CPT chase, the decrease in UPH would not exist and therefore we would be able to pack out more items, making more money. However for each item that misses a CPT, it costs, on average, $2.85 to upgrade the shipment. Because of this I performed two analyses to see the impact of our CPT Chase.…

    • 1591 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Eddie Bauer Case Study

    • 473 Words
    • 2 Pages

    Often times, it could cost you up to $50 extra to pay for the item you already paid so much for to ship to your house. In some cases, it may cost more than $50 especially if you are paying to receive your item through expedited shipping, so that you can receive your item the next day. Eddie Bauer offers free shipping on orders over $99, so you can be confident that you will receive your item in a timely manner for no cost at all. Up to 70% off during Semi Annual Sales Eddie Bauer offers semi annual sales that allow buyers to receive up to 70% off their order. This gives customers the option to splurge into an affordable shopping spree that will leave them satisfied and not feeling sick about the amount of money they spent.…

    • 473 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Meli Marine Case Study

    • 885 Words
    • 4 Pages

    1. What are the most significant factors affecting the attractiveness of the container shipping industry? The container shipping industry is including in four main segment: 1. container shipping, 2. roll-on, roll- off, 3.…

    • 885 Words
    • 4 Pages
    Decent Essays
  • Great Essays

    Fedex Case Study

    • 1784 Words
    • 8 Pages

    Based on the nature of package Fedex worked out the best and economical transport mode through which it can be delivered. Benefits: Eliminated need to have higher inventory as Fedex can replenish the inventory reliably in less time. Savings in transportation costs through efficient transport and routing…

    • 1784 Words
    • 8 Pages
    Great Essays
  • Superior Essays

    In the non-urgent market, Parcelforce Worldwide is looking to achieve some degree of price leadership by finding lower cost international delivery models and passing some of this cost saving to its customers. - Market penetration pricing may be low in order to gain a foothold in a new market or with a new product. To take market share with its new Express service, Parcelforce Worldwide needed to price keenly. - Competitive pricing where price matches or undercuts those of competitors. This could, for example, increase market share with ParcelforceWorldwide”s new Priority service.…

    • 1093 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Crosson & Needles, 2007). Accordingly, for a service business, mixed costs have a variable component and a fixed component; the variable costs change upon gaining or losing clients, and the fixed costs remain the same if the business gains another client or not. The mixed costs here could have included the mentioned trucks, telecommunications, and power and water. The trucks may represent definite fixed costs such as annual insurance, but also involve variables such as changing fuel prices and various amounts of use from a month to another such as distances travelled to meet certain clients, or the frequency thereof. Since this businesses usually involves traveling to client locations, trucks can become a significant mixed cost factor.…

    • 950 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Zappos Value Chain Model

    • 764 Words
    • 4 Pages

    Initially Zappos used a drop ship model for as many client deliveries as possible. In 2003, 25% of Zappos sales were imminent from drop ship [22]. Tony commented that “The drop ship business was easy money. We didn’t have to carry stock so we didn’t have any inventory risk or cash flow problems with that part of the business. But we had plenty of customer service issues.…

    • 764 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    4PS OF PEPSI AND COCA COLA Coca-Cola has a very large product category including e.g. different type of cola drinks, energy drinks, juices and so on. This also applies to Pepsi, which operates additionally in the food business. King of the cola drinks is definitely the Coca-Cola Classic, which is the most sold soft drink in the world. It has become with a lot different flavors as well like lemon, cherry and vanilla. Another significant cola products of this leading company are Coca-Cola Light and Coca-Cola Zero.…

    • 1361 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    Amazon Inventory Analysis

    • 1735 Words
    • 7 Pages

    Introduction Amazon is established in the year 1995 and it is ranked as one of the best retail sites on the internet. Amazon took several measures to increase its revenue. It added several new products to its sites. Amazon was popular among its customers for shipping the goods within the estimated time, leading to satisfied customers, improved market share and repeat business. By the end of 2000 Amazon had 22.3 million registered users on its site.…

    • 1735 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    In addition, material costs are ceased due to scale of economies in a company with certain production where the company is definitely able to purchase the raw materials in lower price, and , competition forces companies making similar components to pass these savings along to the…

    • 951 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Consumer Behavior Of DHL

    • 1863 Words
    • 8 Pages

    Consumer behavior: The behavior of the consumers towards DHL is very much positive. DHL has filled a very important space in its market through its express delivery services. All the customers of DHL have complete trust in the service quality of the company and this is the only reason that makes to the company is leading in the industry in terms of market share, profitability and quality.…

    • 1863 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    This takes place when the parcels are placed on large trucks by stacking on top of each other and resulting it higher chance of falling or being crushed by other unsecured…

    • 840 Words
    • 4 Pages
    Improved Essays