Beyond the Lowest Rate: How to Make Smarter LTL Shipping Decisions

Shopping for LTL freight can look deceptively simple. Enter the shipment information, compare the quotes and choose the lowest rate. Sometimes, that works perfectly well. But reducing an LTL decision to price alone can overlook factors that ultimately have a much larger impact on the shipment and your business.

Transit time, service requirements, reliability, freight characteristics, and the consequences of a late or damaged shipment can all affect which transportation option makes the most sense. For small and mid-sized businesses, the objective shouldn't be to become an expert on every LTL carrier. It should be to have enough options and information to make a better decision for each shipment.

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Start With Price—But Don't Stop There

Transportation cost matters, and no business wants to pay more for freight without a reason. The problem comes when the initial quote becomes the only factor in the decision.

Imagine two carriers quote the same LTL shipment. One is $40 less expensive but has a longer expected transit time. If the freight isn't particularly urgent, the lower-priced option may make perfect sense. But if that shipment contains a component a customer needs to keep production running, or it's headed to a customer with a firm delivery appointment, that $40 difference may be far less important than the service behind it.

The best value isn't necessarily the cheapest shipment. In many cases, it's the option that provides the appropriate combination of price and service for what that particular shipment requires.

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Consider What the Shipment Actually Needs

Not every shipment carries the same priorities. Routine replenishment freight moving well ahead of schedule may give you considerable flexibility, while a time-sensitive customer order may not. Likewise, a standard pallet moving between commercial facilities presents a different set of requirements than freight that needs an appointment, liftgate or other special service.

Before selecting an LTL option, consider:

• When does the freight actually need to arrive?
• Is the delivery date flexible or firm?
• Does the shipment require an appointment?
• Will a liftgate, limited-access delivery or another special service be required?
• Is the freight unusually fragile, valuable or difficult to handle?
• What happens to your business or customer if the shipment is delayed?

Answering those questions helps put the quoted rate into context. If two options meet all of the shipment's requirements equally well, price may be the logical deciding factor. When they don't, the difference in service deserves consideration too.

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Look at the Total Transportation Cost

The number displayed in an initial quote isn't necessarily the only transportation cost associated with a shipment. LTL shipments can incur additional charges when the actual freight differs from the information used to create the quote or when services are required that weren't included initially.

Accurate shipment information is therefore an important part of controlling LTL costs. Before requesting or comparing rates, make sure you have accurate information for:

• Freight dimensions
• Weight
• Freight classification
• Pickup and delivery locations
• Required accessorial services
• Special handling requirements

A low initial rate isn't particularly valuable if inaccurate information or an overlooked service requirement results in additional charges later. Comparing transportation options based on the complete shipment provides a much better picture of what you're actually buying.

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Reliability Has a Cost—and a Value

Transportation decisions can also have consequences beyond the freight invoice. A failed pickup can leave freight occupying valuable warehouse space, while a delayed shipment can interrupt a customer's production schedule. A missed appointment can create additional charges or require employees to spend valuable time rescheduling the delivery and resolving the problem.

Depending on the shipment, a service problem can lead to:

• Expedited replacement transportation
• Additional warehouse handling
• Production interruptions
• Missed customer commitments
• Employee time spent resolving problems
• Customer service issues

None of this means you should automatically select a more expensive option. For routine freight with flexible timing, the lower-cost choice may still offer the best value. For a critical shipment, however, predictable service may justify paying a little more. The key is understanding the business consequences of a service failure before making the decision.

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More Carrier Options Can Create Better Decisions

One of the advantages SMB shippers have today is that comparing LTL options no longer has to mean contacting individual carriers one at a time. Multi-carrier transportation technology can bring available options together, making it easier to compare rates and shipment requirements before making a selection.

This is particularly valuable because the right option can change from shipment to shipment. Destination, freight characteristics, timing and service requirements can all change the equation, so a carrier that makes sense for today's freight may not offer the best combination of rate and service for tomorrow's shipment.

Access to multiple carriers gives SMB shippers the flexibility to make that decision each time rather than being locked into a single transportation option. It also allows businesses to benefit from carrier competition without requiring someone on their staff to become an expert on every carrier and network.

Technology Makes Comparison Easier

Amware's AmRate platform is built around this multi-carrier approach. Instead of visiting multiple carrier websites or manually requesting individual quotes, SMB shippers can compare rates from multiple LTL carriers through a single platform. AmRate can incorporate Amware-negotiated rates, customer-specific pricing and rates a shipper has negotiated directly with a carrier, giving businesses greater visibility into their available options without requiring them to manage the comparison manually.

Technology doesn't eliminate the need to make a good transportation decision, but it can make that decision much easier. Shippers can compare their available choices and consider what matters most for a particular load, whether that's price, timing, service requirements or a combination of factors. When the answer isn't obvious, having experienced logistics support behind the technology can be just as valuable as having the rates themselves.

Use a Simple Framework for Every LTL Shipment

Having more choices doesn't need to make LTL transportation more complicated. In most cases, the decision can be narrowed down by evaluating five basic factors:

• Price: What will it cost to move the freight?
• Transit: Does the expected transit time meet the shipment's needs?
• Service: Can the option accommodate the pickup, delivery and handling requirements?
• Reliability: How important is predictable service for this shipment?
• Risk: What are the business consequences if something goes wrong?

The importance of each factor will change depending on the shipment. For some loads, price will dominate the decision. For others, transit time, service or risk may carry considerably more weight. Looking at those factors together allows SMBs to make a more informed choice without unnecessarily complicating the process.

Give Yourself Options

SMBs shouldn't have to choose between paying too much for freight and becoming transportation experts themselves. A better approach is to create visibility into available options, understand what matters for each shipment and make the transportation decision accordingly.

At Amware, we combine LTL transportation management with technology that helps businesses compare carrier options, book freight and manage shipments through a centralized platform. When a transportation decision requires more than what's displayed on the screen, our team can provide the logistics expertise and support behind those choices. The objective isn't to always choose the cheapest option or always choose the fastest. It's to have enough choices and information to select the right option for the shipment in front of you.