How to Reduce LTL Costs in a Density-Based World
As density-based pricing becomes the new standard in LTL (less-than-truckload) shipping, shippers must rethink their cost strategies to remain competitive. No longer can you rely solely on weight or freight class. Now, cost is determined by how much space your freight occupies in a trailer. Fortunately, there are proven ways to reduce those costs without compromising service or efficiency.
In this post, we explore how small and mid-sized businesses (SMBs) can cut LTL shipping expenses in a density-driven environment through smarter packaging, efficient palletization, and better data practices.
1. Optimize Packaging to Increase Density
Packaging is often the most overlooked cost lever in LTL shipping. In a density-based model, a lightweight item in an oversized box becomes disproportionately expensive. The key is to reduce the volume your product takes up without damaging it.
Tips for SMBs:
- Use right-sized boxes and eliminate unnecessary void fill.
- Consider custom packaging for high-volume SKUs.
- Switch to crush-resistant materials that allow tighter packing.
Example: One Amware customer reduced shipping costs by 22% simply by resizing their boxes to better fit the product.
2. Improve Palletization and Stackability
Carriers reward shipments that maximize trailer space. Poor stacking wastes vertical space and reduces how many shipments fit in a load, leading to higher rates or surcharges.
Strategies to Improve Efficiency:
- Standardize box sizes for more uniform stacking.
- Use corner boards and shrink wrap to support stackable loads.
- Train warehouse staff on proper pallet loading techniques.
Tip: Carriers may apply non-stackable fees for freight that can't support additional weight—avoid these through smarter pallet prep.
3. Get Dimensions and Weight Right
With most terminals now using automated dimensioners, inaccuracies in your freight specs will be caught—and billed accordingly. Misstating dimensions can result in billing adjustments, delays, and penalties.
Best Practices:
- Use a digital dimensioning tool to capture accurate specs.
- Build a process for QC checks before shipment.
- Make sure shipping software automatically populates dimensional data.
4. Consolidate Shipments When Possible
Frequent, small shipments may keep inventory flowing, but they’re often more expensive per unit shipped. By consolidating multiple LTL shipments into fewer, fuller pallets, shippers can increase density and reduce overall spend.
Ideas to Consider:
- Coordinate shipment schedules with customers or retail partners.
- Use a 3PL to manage consolidation and routing.
- Reevaluate reorder points or minimum shipment thresholds.
5. Partner with a 3PL Who Understands Density-Based Pricing
Not all 3PLs or carriers price the same way. Some offer better rates for optimized freight; others penalize inefficient loads. A logistics partner can help you benchmark rates, validate measurements, and even provide packaging audits.
Amware’s Approach:We help customers analyze their shipping profiles, optimize packaging, and integrate the tools needed to meet density requirements—without breaking operations.
In a density-based pricing world, volume matters more than ever. SMBs that adapt through smart packaging, stacking, and measurement will gain a cost advantage. Amware is here to help you make that transition with confidence.
Contact us to schedule a packaging audit or cost analysis.