What is an LTL shipment in E-commerce?
LTL (Less-Than-Truckload) shipment is a form of freight shipping used to deliver large packages and palletized goods. These services can meet the shipping requirements of numerous companies that need to regularly transfer smaller volumes of goods. This type of shipment is cost-effective for larger orders, as the shipping cost is split between the buyers whose orders are grouped.
Significance of LTL shipment in E-commerce Logistics
Less-than-truckload shipments help attenuate the risk of loss of profits due to inventory shortages for companies with distant customers. The significance of LTL shipment includes –
- By consolidating multiple orders from multiple customers, LTL shipments reduce the cost of shipping for e-commerce companies. It allows them to offer lower prices on their products.
- They are an efficient and reliable way of shipping orders quickly and accurately, helping to ensure customer satisfaction. By having access to a variety of LTL carriers, e-commerce companies can choose the best option for their customers, helping to minimize shipping delays and maximize customer satisfaction.
- LTL shipments are an environmentally friendly way to move goods, reducing the number of trucks on the road and helping to reduce emissions.
Prerequisites to Calculate LTL shipment and How It Works
In order to calculate LTL (Less Than Truckload) shipment, you will need the following information:
• The origin and destination of the shipment
• The weight and dimensions of the cargo
• Any special requirements for the shipment (e.g. hazardous material, temperature control, etc.)
Once you have all the necessary information, you can begin calculating the LTL shipment. LTL shipments are typically priced based on the total weight, cube (size), distance, and special handling requirements.
Use Case With LTL shipment
Let’s say ABC sends a shipment that weighs 6,000 kgs but only occupies one-quarter of the trailer, LTL shipping is a great option to move the product at a great price. However, this figure can vary based on the carrier and truck used.