Faster, safer, better: these consumer expectations for e-commerce delivery are driving a speed-focused freight market. This need for speed has inspired e-tail giants like Amazon.com to set new delivery standards with shipping services that put orders on doorsteps in less than 24 hours. The only way for manufacturers and shippers to provide such quick delivery? Sending goods right away.
Historically, shippers with 10-28 linear feet of freight to send have had three types of service to choose from: partial truckload (PTL), volume less-than-truckload (VLTL), and truckload (TL).
For shippers with freight in that linear-foot range, PTL, VLTL, and TL shipping pose a unique challenge in the form of a price-service trade-off. Given the three service options, shippers:
- Risk longer transit times by moving freight through the partial network,
- Pay exorbitant premiums for VLTL service that might damage shipments, deliver freight late, or prioritize smaller loads in tight markets, or
- Buy pricey TL deck space the freight can’t fill.
So how can shippers with freight that measures 10-28 linear feet manage demand, service, risk, and cost, while building more efficient supply chains? The answer lies in a new freight mode, called “shared truckload” (STL).
Partial Truckload
Partials move via freight consolidators (asset-light less-than-truckload (LTL) carriers) that specialize in specific regions. While these service providers run partials through fewer warehouses than VLTL carriers, a PTL load can avoid facilities altogether if it can catch a ride with a small TL shipment. However, shipping capacity is inconsistent at best; when partials move via the TL network, they’re subject to varying market conditions and the availability of a niche carrier base. Because many mid-market and enterprise shippers need a national reach and desire cost savings, they tend to get quotes from many consolidators, or hire brokers with large networks to facilitate transportation for partials. This mode doesn’t require freight classification, and sometimes separates cargo that’s part of the same shipment.
Benefits of partial truckload include:
- Direct, TL-style service, depending on capacity,
- Less transloading than VLTL,
- Relatively predictable delivery windows, depending on TL capacity, and
- No freight-class requirement (fewer fines and fees).
The disadvantages of partial truckload include:
- Tight, regional capacity,
- Potential for long transit times,
- Potential for damage (7% risk), and
- Potential for split-up shipments.
The primary drawback of this mode comes from the consolidation process. Because carriers match multiple partials at warehouses after pickup, a load’s delivery transit doesn’t begin until a facility has accumulated enough freight to top off a whole truck. As a result, partials that don’t fill a truck to capacity wait at warehouses before traveling to their delivery locations. Whether loads idle at consolidation facilities or hop on a truck immediately, the amount of handling causes undue damage.
Additionally, the potential for scattered loads means freight in the same shipment might arrive at different times.
While PTL shippers can, with luck, experience the benefits of TL shipping, the difficulties of finding capacity and delivering freight on time are enough to give any shipper pause. Ultimately, both of these challenges make supply chains less efficient, slowing down delivery and jeopardizing customer satisfaction.
Volume Less-Than-Truckload
VLTL is an alternative for shippers with 10-28 linear feet of freight. Shipments move through the LTL hub-and-spoke system, zigzagging between several trucks and one to seven terminals. This excessive handling makes the hub-and-spoke network most efficient for LTL shipments, not VLTL ones. As a result, the LTL system prioritizes smaller freight over larger freight, dropping VLTL shipments in tight markets.
The benefits of VLTL include consistent, nationwide capacity (traveling through the expansive LTL system). Disadvantages of include:
- Changing size requirements,
- High rates of damage and loss (10% risk),
- Potential for split-up shipments,
- Delays,
- Unsophisticated shipment tracking, and
- Freight-class requirement (potentially more fines and fees).
As of late, VLTL service has cost substantially more than ever before. While rates for smaller VLTL shipments (just above the 10 linear-foot mark) are competitive with other cost-efficient shipping modes, pricing for larger loads is significantly higher. For example, VLTL quotes for about 30 linear feet of freight have been close to TL rates recently.
Another issue is LTL carriers’ habit of changing size allowances to better suit existing infrastructure, which leaves VLTL freight in the lurch. This has been more apparent during recent events like COVID-19, the Evergreen ship debacle in the Suez Canal, and the storms in New Jersey, Texas, and Colorado, all of which have clogged the LTL network. The result is higher prices, unpredictable service, and rejections of loads over 10-12 linear feet. Because the hub-and-spoke system is bursting at the seams with small shipments, it’s squeezing out shippers in the mid-size category, who, in turn, are opting to book other freight modes.
Additionally, a VLTL shipment can encounter capacity challenges due to a carrier’s preference to move smaller freight. Despite consistent capacity, VLTL shipments are logistically challenging to move. The result: Carriers prioritize shipments that are easier to haul, making VLTL shipping times unpredictable.
Lastly, VLTL shipments risk the same headaches — damage, loss, and delay — as LTL shipments. Other disadvantages of VLTL take the form of ambiguous tracking updates and the potential for freight-class charges.
To summarize, shippers have a lot of hurdles to overcome before reaping the benefits of the VLTL mode. Factors such as prolonged transit and scattered cargo make it hard to champion VLTL as an efficient supply-chain solution.
Truckload
TL (or “exclusive use”) is a well-established shipping mode that operates with consistent capacity around the country. One truck moves a single shipper’s loads directly from pickup locations to destinations. Because shipments stay on the truck for the duration of transit, they’re easy to track and incur almost no damage or load separation. With TL shipping, trucks move immediately, whether they’re half-empty or completely full.
Benefits of TL shipping include:
- Consistent, nationwide capacity,
- Direct transit,
- Minimal handling (1% risk of damage),
- No potential for split-up shipments,
- Accurate shipment tracking,
- Predictable delivery windows, and
- No freight-class requirement (fewer fines and fees).
The disadvantages of TL shipping include highest cost.
While TL is efficient and of high quality, it wastes truck space and capital. North American businesses spend an estimated $70 billion on TL freight that ships with unused trailer space every year. Shippers can prevent this waste of deck space, money, and fuel by booking shared truckload, which gives shippers the TL service they’re used to at a lower cost.
Shared Truckload
Like TL shipping, shared truckload is completely hubless. Shared truckload freight moves directly from its pickup location to destination, without passing through hubs or terminals. Unlike TL (and the other modes), shared truckload enables several shippers to share trailer space in one multi-stop full truckload. With shared truckload, shipments that are traveling on a similar route move on the same truck.
Shared truckload applies the concept of carpooling to shipping, optimizing truck space and keeping shipments in the same load together.
Benefits of shared truckload include:
- Consistent, nationwide capacity,
- Direct transit,
- Minimal handling (0.001% risk of damage),
- No potential for split-up shipments,
- Accurate shipment tracking,
- Predictable delivery windows,
- No freight-class requirement (fewer fines and fees), and
- Cost savings.
Because shippers don’t pay for more space than their freight requires, shared truckload lets shippers with 10-28 linear feet of freight leverage TL-style shipping for a fraction of the cost. Shared truckload shippers can send freight when it’s ready and trust it to arrive on time, in full.
STL shippers can count on capacity, too. Because carriers earn more per mile on multi-stop shared truckloads, STL shipments are more attractive than VLTL and partial loads.
Ultimately, shared truckload gives shippers what they need: efficient and reliable shipping for less. This mode drives efficiency within supply chains by allowing shippers to send goods when they’re ready, leveraging hubless transit, and optimizing shipping budgets.
In conclusion, shippers with freight that measures 10-28 linear feet can manage demand, service, risk, and cost (while building more efficient supply chains) by selecting the shipping mode with the highest performance level and lowest price.
Next time you find yourself choosing between consolidators, the hub-and-spoke system, and TL shipping, remember your fourth option: shared truckload.
Mode comparison chart
|
PTL |
VLTL |
TL |
STL |
Consistent size requirements |
x |
x |
√ |
√ |
Nationwide reach |
x |
√ |
√ |
√ |
Consistent capacity |
x |
√ |
√ |
√ |
Direct transit |
x |
x |
√ |
√ |
Low risk of damage |
x |
x |
√ |
√ |
No load separation |
x |
x |
√ |
√ |
Sophisticated shipment tracking |
x |
x |
√ |
√ |
Predictable delivery windows |
x |
x |
√ |
√ |
No hidden fees or accessorials |
√ |
x |
x |
√ |
Oren Zaslansky is founder and chief executive officer of Flock Freight.