Efficient transportation and delivery systems are a business’s backbone. They ensure that goods reach customers on time. Most businesses depend on logistics solutions for transporting products. There are two main methods for goods transportation: full truckload (FTL) and less than truckload (LTL). FTL is utilized when an entire truck is required for goods transportation. LTL delivery or PTL is used when the business requires transporting a small amount of goods frequently in a truck.
The Less-than-Truckload (LTL) market in India is estimated to be worth USD 27.09 billion in 2024. By 2030, it is expected to grow to USD 48.45 billion, with an average yearly growth rate (CAGR) of 10.17% during this period. In 2023, the Wholesale and Retail Trade sector made up a significant portion of the market, contributing 39.64% to its total value. Read Complete market research Here.
Are you looking for a cost-effective and hassle-free LTL shipping solution? If yes, AAJ supply management company launched AAJ Swift in 2023 for Small—and medium-scale enterprises grappling with LTL transportation problems.
What Is LTL Delivery?
LTL(less than truckload) is a shipping option used in the transportation industry. It is utilized when a business wants to ship a few items that cover only part of the trailer or a full truck. Your goods will be combined with the goods of other businesses during transportation. The main benefit of LTL is that a business must pay for the space its goods cover in the truck. So LTL transport is a cost-effective solution.
Let’s discuss this with an example:
Imagine you have a small online furniture business. You need to pack and ship three coffee tables weighing around 200 kilograms to a different city. Sending only three coffee tables in one full truck will cost a lot. Hence, choosing the LTL delivery service is an excellent idea.
Here, your coffee tables will be shipped with goods from other companies, like a few boxes of clothes from an online fashion business and numerous kitchen appliances from furniture. The total LTL transportation cost will be shared among different businesses. However, the truck will stop at various locations to drop the shipment.
Benefits Of Less Than Truckload Delivery
1. Cost Efficient
Every business wants to transport goods at less cost without compromising on the quality of the shipped product and timely delivery. Renting a full truck will compel a business to bear all the expenses of the truck. However, the LTL shipping option requires the business to spend money only for the space occupied in the truck by its products.
2. Eco Friendly
Various businesses’ shipments are combined in less-than-truckload deliveries, so fewer truck trips are needed for transportation purposes. This process reduces fuel consumption and harmful gasses released into the atmosphere.
3. Tracking
LTL transporters provide real-time tracking so that the business can know about the product’s location.
4. Flexible Shipping
LTL offers good flexibility. It allows shippers to send small domestic shipments more frequently to their destinations.
How LTL Delivery Works?
1. Shipment Preparation
The business’s goods are packed thoroughly in crates or pallets to withstand road bumps or heavy traffic. Proper packaging prevents products from having dents, scratches, or damage. The shipment is then packaged and labelled with all the details, like the destination address, weight, and tracking information.
2. Shipment PickUp And Loading
LTL shipping companies pick up the goods from your location. Multiple shipments from various businesses are collected and taken to the local terminal or warehouse storage for sorting. The goods and products are sorted based on their destinations. The products going to the same destination are loaded in one truck.
3. LTL Transportation
The truck carrying the shipments stops at multiple locations for unloading. The goods are then delivered to their final destination. The shipper pays the charges based on the goods’ classification and travel distances.
Challenges In LTL
1. Late Delivery
LTL shipments usually take a long time to deliver goods and products to their destinations because they have to stop at multiple locations to pick up or drop off goods.
2. Damage Risk
The LTL shipments are handled numerous times, which increases the risk of damage.
3. Space Availability
LTL deliveries have limited capacity during peak seasons, which can lead to delays in delivering goods to their destinations.
4. Compex Pricing Structure
LTL pricing structure depends on various factors, such as freight class, product dimensions, distance traveled, and other services. Understanding the pricing structure can be difficult for a new business.
Difference Between LTL And FTL Transport
1. Shipment Size
LTL is used when a business needs to ship a few products frequently to its destination. The products fill only part of the truck.
FTL(Full truck load) is utilized when a business ships a large number of products that fill the entire truck.
2. Cost
The cost of LTL is shared among various business owners. But in FTL, a business has to bear the entire transportation cost even if the products do not fill the whole truck.
3. Delivery Time
LTL takes longer to deliver products because of multiple stops for loading and unloading products. But FTL has a faster delivery time because here, the truck goes in the direction from its origin to its destination without any stop.
4. Handling
In LTL shipping, the products are handled multiple times, which increases damage risk. But in FTL, products are loaded into the truck and handled only at the time of delivery., reducing the chances of product damage
5. Shipping Cost
In LTL, the pricing structure depends on various factors like the weight and dimensions of the product, distance traveled, and many more. However, in FTL, the price structure is relatively straightforward.
6. Uses
Small and medium business or e-commerce business owners mainly use LTL. However, manufacturers or large enterprises that want to ship bulk products use FTL.
Key Factors That Determine LTL Shipping Costs
1. Weight And Dimension
Weight and dimension are the two essential factors that determine LTL shipping costs. Heavy and large shipments usually require more truck space, increasing LTL costs.
2. Nature Of Goods
The type of goods you want to ship in the truck even determines the shipping costs. For example, fragile goods require special handling, which increases the shipping costs. Similarly, shipping temperature-controlled items like pharmaceuticals will even cost more.
3. Distance
The distance traveled is one of the most important factors determining LTL shipping costs. The more distance the shipment travels, the more expensive it is. Again, routes with poor road infrastructure or remote areas can add some extra costs.
4. Fuel Price
Fluctuations in fuel rates even affect shipping costs. When the fuel price goes high, shipping costs increase.
5. Freight Class
Shippers determine the freight class based on product density, stow ability handling, and liability.
Density is one of the most significant factors in determining the freight class. Transport companies consider the amount of space the goods will take up in the truck based on their weight. The product’s density is calculated by dividing the total freight weight by the volume. Less-dense freight takes up more space in the truck and, hence, costs more to ship.
Which Business Benefit Most From LTL Delivery Services?
1. Small And Medium Enterprises
Small and medium enterprises must ship small quantities of goods to various destinations. They need to increase their budget to cover the full truckload expenses. LTL shipping is best for them, as multiple businesses will share the cost. They can transport products to their destinations cost-effectively.
2. E-commerce Business
E-commerce businesses frequently ship small to medium packages to various locations that only require LTL delivery. LTL is one of the best ways for these businesses to ship.
3. 3PL Providers
The 3PL company uses LTL services to manage the small goods of various businesses.
Why is AAJ Swift the Best Choice For LTL Transport?
- AAJ Swift provides LTL delivery across both rural and urban locations in India.
- It handles both fragile, perishable goods and highly valuable goods efficiently.
- Businesses pay only for the space their goods occupy in AAJ Swift. So it is a cost-effective transport solution.
- AAJ Swift provides businesses with real-time updates about the product.
Conclusion
LTL delivery in India is a cost-effective solution for businesses. It transports smaller goods without booking the entire truck. Leveraging LTL transport services can optimize the supply chain and improve delivery efficiency.
AAJ Supply Chain Management
