6 Considerations for Choosing an LTL Freight Carrier

03/13/2019 — Leah Palnik

The 25 largest U.S. less-than-truckload (LTL) carriers collectively brought in $34 billion in revenue in 2017. That is a staggering number and a 7.8% increase over the previous year. When the numbers are in for 2018, don’t be surprised to see another healthy rise. As the largest LTL carriers continue to command more of the overall marketplace, shippers must be resourceful when looking to source LTL freight services so as to not get squeezed on price due to the number of market players. Shippers should take the following six factors into consideration when finding the most efficient LTL freight services.

1. Transit Times - How fast do you need to get your shipment to your customer, or to receive your shipment from your vendor? Long-haul carriers tend to have slower transit times in regional lanes, while regional and multi-regional carriers are much faster in these lanes, but may not provide service in longer haul lanes.
2. Geographic Coverage - Once you get beyond the top 10 LTL carriers, most of the remaining players provide only regionalized direct pickup and delivery services. Understanding carrier coverage areas helps you optimize which carriers are best suited for the service.
3. Service Performance - On time pickup and delivery performance is not always the same. Often this depends on where your business is located relative to the nearest freight terminals. Long-haul carriers traditionally have been known to provide lower delivery reliability, while regional carriers tend to provide reliability in a higher range. Almost all of the LTL carriers will guarantee delivery or provide deliveries that are "faster than standard" for additional fees.
4. Liability Coverage - The amount of liability coverage you receive can vary and is set by the carrier. It’s not uncommon to see liability restricted to $0.25 per lb. or less, which means shippers need to be diligent about understanding their options. Especially if the liability coverage doesn’t meet the actual value of the freight.  
5. Financial Stability - Most of the remaining LTL carriers in the industry are pretty stable from a financial standpoint. However, there are a few carriers that continue to struggle with profitability and debt issues. Anyone who may recall when industry behemoth Consolidated Freightways closed its doors in 2002 will understand the importance of not having your freight in the hands of a financially unstable carrier. 
6. Pricing Factors - Lastly, and perhaps most importantly for many small business, is price. When working with an LTL freight carrier, there are many factors that will determine your true cost of transportation. These include:
   • Discounts, base rates, and net price 
     Most LTL carriers provide pricing in the form of discounts off of base rates, which will vary by carrier. So, a 68% discount from one carrier might actually be less expensive than a 70% discount from another. The main point to consider when comparing LTL carriers is not what the discount or the base rates are, but rather what is the final net price to you.
   
   
   • Minimum charge  
     Generally a flat fee under which the carrier will not discount its price. Some carriers offer big discounts, but set the minimum charge high which may result in less of a discount on smaller weighted shipments than you anticipated.
   
   
   • Freight classification 
     There are 18 different freight classes ranging from 50 to 500. These classes are based on the density of your product and will definitely impact your overall price.
   
   
   • FAK provisions 
     If negotiated, "freight-all-kinds" provisions may allow you to ship products with different classes under a single class from a pricing standpoint. 
   
   
   • Weight 
     How much your shipment weighs will play a significant role in how your rate is calculated. Keep in mind that carriers will use hundredweight pricing, which means that the more your shipment weighs, the less you'll pay per hundred pounds.
   
   
   • Accessorial fees 
     Extra services performed by the carrier generally add additional fees to your overall freight bill. The fees that carriers charge for these services can often be radically different so it's important to educate yourself. 

There are other factors not mentioned above that need to be considered when choosing an LTL freight carrier as well, such as equipment specifications (e.g., liftgate, trailer size, etc.), scheduling flexibility, and tracking capabilities, to name a few. It's easy to see why, what may seem like a simple service of picking up a shipment and delivering it, is often more complex than meets the eye.

Generally speaking, there is almost never just one LTL freight carrier that fits every need you may have. Unless you have spare time on your hands, your best bet is to work with an established freight broker like PartnerShip that can do the heavy lifting for you so that you can stay focused on running your business.

Need some help evaluating your freight shipping? Need help finding the right LTL freight carriers? Let PartnerShip provide you with a free, no-obligation quote to get you started.

Truck Driving Trailblazers: Women in Shipping

03/08/2019 — Jen Deming

Riding West with Annie Neal

Stagecoach and horse-drawn freight wagons, often hauling bullion and other high-value supplies heading west from the east, were a very early predecessor to the modern trucking industry. A notable husband-wife team, Annie Neal and her husband William often ran routes together, taking turns driving the teams of horses or acting as load security. Annie is often credited with being one of the earliest female "freight haulers" and helped pave the way for women drivers of the future.

A Shift in Responsibility

Horse-drawn modes of transportation were being retired through the beginning of the 20th century, and engine-powered trucks evolved as a reliable, efficient mode preferred by most freight carriers. As World War I broke, the first utility trucks were being used to haul medical equipment as well as injured soldiers to and from the battlefront, oftentimes being driven and loaded by women medical attendants and nurses. The onset of the first World War set the tone for a female-dominated industry while men were otherwise occupied and away fighting.

Luella Bates - Mechanic, Operator, Spokesperson

The early 1900's also saw the need for women to fill long-haul freight positions left by men who reported for duty. Luella Bates was one of about 150 women hired as test drivers for new truck prototypes by Four Wheel Drive Auto Company. These women tested safety, security, and overall mechanical soundness of these vehicles, logging many hours under various weather conditions and road types. When the men returned, Luella stayed on, acting as a demonstrator, mechanic, and driver, often touring across the United States for truck model launches and safety demos. She was often used in advertisements and as a consultant for dealerships throughout the remainder of her career, and used her public platform to generate excitement and interest among fellow female truck drivers.

Lillie Drennan - the First Licensed Truck Driver

Lillie Elizabeth McGee Drennan was another huge force in the history of women truck drivers. After starting a trucking company with her husband William Drennan in 1917, Lillie played a huge part in the training and recruiting of additional drivers. After divorcing in 1929, Lillie took control as sole owner of the trucking company, and also began driving trucks in order to expand and grow the business herself. After an initial denial to receive her own commercial driver's license (CDL), presumably due to a hearing impairment she'd had since she was a child, she successfully won a lawsuit and received the license in 1929. Following that, she continued expanding her successful truck business as a well-known regional owner-operator in East Texas. Lillie became a strong advocate for women's rights and a hero to those living with disabilities. She continued to push for equal opportunities for women in the workplace and helped successfully recruit female drivers during World War II.

Driving the War Effort

During World War II, Rusty Dow was a truck driver for the U.S. Army Engineers/Alaska Defense Command. In 1944, she became the first woman to drive a fully loaded truck the entire length of the Alaska Highway, completing the 1,560-mile trip in 11 days. During the same period, Mazie Lanham became the first woman driver for UPS in 1943 due to a workforce shortage during the war. Many other women came to follow in her footsteps, earning the nickname "Brown Betties."

Starting a Revolution

In the 1970's, Adriesue "Bitzy" Gomez was a truck driver and a champion of women in the trucking industry. During this formative period in the Women's Movement, she founded the Coalition of Women Truckers, an organization that worked to level the playing field in such a male-dominated industry. Through her efforts, and those of the other 150 members she recruited, Bitzy pushed forward a campaign to hire more female drivers and machinists, fighting for equal opportunity and safety from harassment within the workplace. 

Where are we now?

The truck shipping industry has changed a lot over time, and women are entering the field of transportation more readily than before. But, there's still a lot of catch up to do to even out female representation within this male-dominated industry. The Women in Trucking Association is an organization created with the intention to increase the number of women working in trucking transportation. The WIT has partnered with the National Transportation Institute in order to accurately report the number of women in trucking. While women represent the minority group within the industry, and women only comprise 7% of the available pool of drivers, women are working in over 24% of the management and training roles. 

Where are we headed?

Women drivers are more in demand than ever, especially with the ongoing driver shortage that continues to affect the available pool of carriers. To recruit and entice qualified truckers, male or female, carriers are optimizing current work conditions by upgrading tech, creating new dedicated rest areas, updating equipment to include more comfortable living accommodations for long hauls, and an increase in base pay. Drivers earn pay based on experience and miles, offering a more level compensation playing field than in many other industries and available career opportunities. While women continue to encounter many of the challenges presented since first breaking into the trucking industry, carriers are making it clear that they're wanted - and needed, not only as drivers, but as trainers, recruiters, brand advocates, mechanics, and business owners.

Women have been involved in the transportation industry since wheels first hit the road. As time has passed, the role of these women has evolved, and that role continues to change as needs of the industry adjust to meet the needs of consumers. Throughout the transformation, one thing is for certain - women in trucking continue to play an indispensable and revolutionary part in the future of transportation. If you're a driver, we want you to play that part with us - join our network of partner carriers!