Less than truckload (LTL) freight shipping is just as the name suggests. Why do you have to pay for the full cost of the truck when you won’t even use the full load? From there comes the idea, “Let’s share both the truck and the shipment cost." Excited? Well, you may have already started to wonder how much it would cost to ship a small cargo from China, Germany, the United States, or anywhere else in the world to the UAE.
To better understand what affects LTL freight shipping rate, we will tell you in this article the factors your LTL overall costs depend on. Let’s see…
Base Rates.
A tariff, or rate base, is a rate matrix that defines hundred-weight (CWT) rates for all classes. The CWT calculation is determined by the freight classification. Rates also differ depending on the lane. To maintain a proper balance between the truck and the cargo, base rates are adjusted according to the need for extra volume and increased gross costs for lanes. At Vervo Middle East, we offer you a list of competitive rates to help maximize your cost savings. Get a free quote.
Weight
LTL freight cargo is usually heavier than 150 pounds (68 kg). Weights are also defined for all zip code combinations in the tariff rate matrix. LTL freight charges are determined by the shipment's weight or the pallet number it is carried on (skid space).
The CWT rate typically decreases as the weight of your cargo increases without including accessories or specialty services. In other words, the greater the weight of your package, the lower the cost per hundred pounds. Do you want to know how much your LTL cargo weight will affect your overall cost? Contact an expert today!
Density and Dimensions
CWT rates use the highest number of the actual weight and the “cube weight." Cube weight is calculated by multiplying the total cubic feet of cargo by 10 pounds. We include any packing, overhangs, or protrusions when measuring the dimensions of your package to estimate the cubic weight.
The density is then calculated by dividing the entire weight of the cargo by the total cubic feet. Calculating the density of your shipment helps appropriately describe your cargo on the bill of lading. After calculating the density, you can determine the class. In general, density influences the shipment's class and volume. It works like this: more space and personnel means more money (even if the weight is less).
While you might find it difficult to adjust the weight of your cargo, there are other options available to you through a reliable logistics company. That is our role as a logistics partner. At Vervo Middle East, we will guide you through the process step-by-step. Get a quote within an hour.
Freight Classification
Both the dimensions and weight of the shipment help determine the freight class, which directly impacts rates. Every piece of freight has a classification within the LTL world, and classification is a big driving force in setting LTL rates.
Classes are published in the National Motor Freight Classification (NMFC) book by the National Motor Traffic Association. NMFTA has created 18 distinct classes ranging in size from 50 to 500 pounds. Factors that impact the classification of LTL freight are:
- Stow-ability
- Density
- Value
- Handling
- Liability.
The lower classes always have lower rates. Lower classes represent very dense freight that is difficult to damage and easy to handle.
Conversely, the higher the class, the higher the rate will be. Higher classes represent lighter or less dense freight that might occupy more space. It may also require special handling or equipment for perishables, fragile, or hazardous items, which likely leads to higher costs.
Distance between origin and destination
Generally, the farther your shipment moves between the origin and consignee, the higher the cost per pallet or hundredweight. That is due to driver and equipment costs. It also may cost more to ship to a rural, unpopulated area than a metropolitan one.
Several LTL carriers will have multiple service centers throughout their coverage area. Even if the distance from the origin is longer, areas closer to those service centers can offer lower rates.
Some LTL carriers only serve a specific geographic region, so you must consider how many zip codes the carrier services directly. If cargo is delivered to a place outside of a carrier's typical service area, the trucking company will transfer it to another LTL carrier for final delivery. This is referred to as interlining, and it might lead to increased costs owing to fewer discounts and higher minimum charges.
Choosing an end-to-end solution with a seasoned partner saves you a lot. Vervo Middle East Covers over 120 Countries; Call our experts today to know how much you are going to pay for your LTL cargo.
Pallet rates
Pallet pricing is proposed to simplify freight charges. The number of skid spaces in a trailer determines the pallet rates.
Freight All Kinds (FAK)
Freight of all kinds is an agreement between the client and the shipping company that allows several items of various classes to be delivered and billed under the same freight class. For example, a client shipping a variety of goods ranging from classes 50 to 100 may work out a FAK with the carrier to grade all things at class 70. This can result in considerable savings for clients by lowering the cost of high-class shipments.
Negotiated Tariff Rates
You can negotiate with many LTL carriers based on your various shipment lanes, as you are not just assigned a basic rate. After you've evaluated and better understood your freight data and operation per lane, you may approach the LTL freight forwarder and engage with them to get various pricing for different lanes. This ensures you're getting better LTL freight rates.
Additional Services Required
Expedited Shipping Services
Expedited shipping services are intended for time-sensitive cargo. Request an expedited freight quotation if you require LTL products to arrive at their destination faster than the typical transit period. Freight service tiers usually include 3-day, 2-day, overnight, and next-day delivery.
Guaranteed Services
These services are “required appointments." They involve date- and time-specific pick-up or delivery requirements that must be met within a certain time frame. For instance, before noon on Sunday or after 8 p.m. on a Friday. Speak with Vervo Middle East freight specialists to arrange your LTL shipment with such guarantees.
Accessorial/Surcharges
Accessorial costs result from additional services provided by the carrier that go beyond the standard dock-to-dock or business-to-business pickup and delivery. We often list accessorial fees on the rate confirmation or as an appendix to your overall costs. We can also reduce accessory costs to a fixed amount or perhaps eliminate them entirely. Examples of these charges include:
- Liftgate and tailgate service: when freight weighs over 45 kilograms and the receiving location lacks a dock to allow the shipment to be carried immediately off the vehicle. Also, when a forklift is not accessible on-site, lift gate services are frequently required for pickup and/or delivery. At Vervo Middle East, we offer to lift gate services upon request.
- Limited Access Locations: This service is necessary for deliveries to places where carriers have limited access. That happens in locations or destinations that restrict trucks from entering, such as construction sites, camps, rural areas, strip malls, jails, prisons, churches, schools, military bases, government facilities, storage units, and so on. Vervo Middle East is an authorized freight forwarder equipped to access such locations.
- Inside/residential pickup and delivery: This type of service falls under "first and last mile" services. You must request this service if the carrier has to enter the premises to get the freight to load or finish delivery by bringing it inside.
- Fuel surcharges: the most common additional fee, as they're typically factored in on every shipment. The fuel surcharge is a fee charged to cover the fluctuation in fuel prices. There’s simply no way out of a fuel surcharge.
Most LTL freight forwarders specialize in one or two specialized services. At Vero Middle East, our wide network of strategic partners in over 120 countries allows us to offer a large variety of further specialized services. Those services are required upon request for additional fees, such as:
- Notification services: we can set it up prior to cargo pickup or delivery so that you know when to expect the truck. We relate this service to our cargo-tracking solutions.
- White-glove Services: White-glove services are provided for both residential and business shipments. This service is best suited for things that require an additional pair of hands or packaging expertise.
- First and last mile services: First and last mile services encompass more than just freight pickup and delivery. Examples of first-mile services are inside pickup, packing and disassembling, stair carries, etc. Examples of last-mile services are inside delivery, removal of packaging materials, assembly or setup, and other similar services.
Some other accessorial services can include driver compensation, maintenance, protection from freezing, chilled and frozen LTL cargo, LTL hazmat transportation, heavy-lift LTL, additional waiting time, etc.
Other factors affect shipping costs for LTL freight
Seasons
Seasonal patterns have a significant influence on freight prices. Prices rise in proportion to demand. Rates inevitably rise when transportation becomes a high priority. In the summertime, the demand in the UAE is often higher. Keep an eye out for seasonal pricing adjustments. Contacting us for a customized LTL quote is always a beneficial starting point.
Disruptions
Now all the previous factors were more or less controllable, but what about the factors that are simply uncontrollable!? The weather intervenes. Shortages. Pandemics strike. Such interruptions have an influence on all supply chains and, as a result, transportation requirements and freight prices. These events lead to rerouting goods, modifying shipping requirements, and extra fallout for fulfillment centers working hard to fulfill orders. Expect a higher price with such disruptions that make planning difficult, as they raise freight charges at the last minute. With experience and a deep understanding of your needs, Vervo Middle East can provide end-to-end solutions to the most challenging situations, because simply, this is logistics.
A reliable logistics partner guarantees that even if disruptions happen, they will be as minimal as possible, as we already have the knowledge and experience to handle the toughest circumstances.
Now, you have taken a general look at LTL Costs and have an idea about How this service can fit your business. All that's left is to take advantage of free LTL quotes from Vervo Middle East. Our specialized experts help answer your questions, provide suggestions, and more through our shipping quote request.