LTL shipping usually refers to a shipment larger than 150 lbs. which is too big or heavy for the parcel/small package drivers to handle. LTL shipping also refers to the “volume shipments” between 10,000 lbs. and 20,000 lbs. or those that take up 5 to 12 skid spaces on a truck (up to 24 linear feet of a truck). Parcel/small package carriers handle smaller shipments and Truckload Carriers, also known as Contract Carriers, handle larger shipments. “Common Carriers” are most likely the way you move your Less Than Truckload shipments now.  Fed Ex, ABF, YRC, Estes Express, XPO Logistics, UPS, etc… are all carriers that operate under the legal authority known as “common carriers.” They all operate out of a terminal based system or a hub and spoke system, where freight of 1 to 12 pallets is collected from various shippers, sorted geographically, and then loaded on consolidated trailers. These trailers are shipped to intermediate terminals or until after a sort along the way, the freight arrives at the final destination terminal where the carrier unloads a particular shipment and sends it out for delivery on the delivery truck. The freight does not have to be palletized, it can also be floor loaded.

Tariffs are the documents issued by Common Carriers that lay out shipping rules/pricing, surcharges, and liability details. Pricing with Common Carriers is dependent on the National Motor Freight Classification System – each commodity has a NMFC number which corresponds to a particular CLASS which then determines the price. The underlying rationale is that the price per lb. to ship foam has to be much greater than the price per lb. to ship steel, right? Because 2000 lbs. of foam might take up half a truck; and 2000 lbs. of steel just a pallet space. Common Carriers charge a lot more per lb. for foam than steel to balance out the revenue of their trucks full of such mixed freight. The value of the freight is also a consideration. The Carriers will charge a higher price for a higher value product because they have to have more liability insurance. Lastly, the Carriers will charge more depending on how labor intensive your freight is to handle/move from a packaging perspective, so additional handling charges may apply.   

It is very important as a Logistics Manager that you “Understand your Freight.” You are being charged largely, as mentioned above, based on the weight and space taken on the trailer (per lb. and per linear foot). If it is stackable, be able to calculate how much space it will take up on the truck. The Class is derived from the NMFC description which is determined by the density, value, and handling/packaging characteristics of the particular freight you ship. First, find an NMFC description of the freight you ship that is closely matching. There is a general number and description but also a Sub number based on density and characteristics of the particular commodity. Each full NMFC number including its “sub” number corresponds to a particular Class. The Class will range from Class 50 to Class 500. Also, just because two pieces of freight move at the same class does not mean they move at the same rate because it depends on the commodity as well. The NMFC description and commodity selection process is critical for you to know because this can cause many shippers to get frequent surprise upcharges on their freight invoices after carriers do inspections of their freight and classify it correctly. It is the shipper’s basic responsibility to know precisely what NMFC description and code they are shipping under. Here is how to figure out the shipping class based on the lbs. per cubic foot:

Example: The pallet dimensions are 44x44x84 and the total weight is 500lbs.

44x44x84 = 162,624/1728 = 94.11

500lbs/94.11 = 5.31

5.31lbs per cubic foot would be classed at 175

The Bill of Lading plays an integral role in the shipping process. Anything written or not written on the BOL will be used when the Carrier determines the cost per shipment. Any errors on the BOL will result in working with the Carrier to correct any mistakes, such as weight/dimension differences, Shipping/Delivery/Billing information, Class modifications. Corrections to a BOL can be costly and time consuming! 

If shipping with a Common Carrier, the packaging must be durable enough to withstand multiple transfers by forklifts and specifically meet the requirements inside the Common Carrier’s Tariff. The Carrier can deny a damage claim based on unsuitable packaging. Do not assume the supplier you bought from knows how to package what your purchase order. Ask about it, have them send pictures, and use your common sense!

Hazardous cargo has special requirements. Domestic USA laws apply and international ones can too. You must disclose to your Broker and Carrier, whether Common Carrier or Contract Carrier, that the cargo you are shipping is hazardous. Be sure the Logistic Company and Carrier is hazardous certified. Hazardous freight must be marked as such and travel with Material Data Safety Sheets (MSDS) and there are other requirements such as placards that go on the outside of the truck that might apply. Look into federal laws and ask a lot of questions if you ship or receive “hazmat.”  

Common Carriers are not the only alternative! Larger shipments over 4 skids or expedited shipments of any size that must deliver on time or your Company’s reputation will be in jeopardy, you should consider shipping on a dedicated truck. Specialized freight that is high value or of high fragility or both, even if it is LTL, should probably not be shipped through terminals where it is more susceptible to both theft and damage. “Contract Carrier” is a different legal category of trucking companies registered with the US Dept. of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). There is no Tariff that governs Customer-Carrier relations. Instead it is up to each party to utilize customized Contracts to do so. Laws have gotten stricter on some areas and looser on others; this is a good reason why many freight buyers prefer to use Brokers in this “Buyer Beware” environment.

Let’s talk about “volume shipping” briefly. It is shipping usually 4 skids or more, 10 linear feet of trailer space, or over 5,000 lbs. but many Common Carriers classify it as volume when it meets their requirements.

Contract carriers are also an excellent way to ship urgent freight or freight that you want better control over as well during its shipping. A logistics management company can watch the freight and provide daily tracking spreadsheets. Going airfreight can be riskier than using a truck because airlines can be grounded and flights cancelled which eliminates or postpones the guarantees of UPS and FedEx for instance. While this is expensive of course, perhaps the option of NOT getting there can be worse. 
Contract Carriers are a great reliable way to get freight on a deadline there. With today’s more accurate weather predictions, you can know in advance if weather is going to be a factor or not. We highly recommend this method of shipping for urgent freight especially. 

Of course it depends what you are packing but the ideal pallet is always the same to a carrier: a square strong pallet 45" to 50" high on which they can stack another pallet and weighing no more than 1500 lbs. to utilize as much space in the trailer as possible.  

The most economical pallet for every shipment would fit perfectly fill a 48" x 42" x 48" space.  

Your goal should be to minimize the dimensions of your freight while the packages or contents inside of the skid are configured in the strongest configuration possible to withstand weight on top and/or pressure hits from the side - such as other freight bumping it or a forklift hitting/pushing it from the side.  

Furthermore - you should use binding - plastic or steel, to tie down/secure your freight to the skid in addition to shrink wrap. Shield your freight from a "pressure event" such as a minor hit/push by a forklift to keep your freight on its pallet as freight moves around with natural bumps on the road. Also, shrink wrap over the top and totally enclose the freight with shrink wrap to keep humidity & rain out from a leaky truck or unprotected loading bay. This will also minimize the risk of theft by having your contents completely covered/wrapped and tied or strapped down.

If you ship fragile products such as beverages or liquids, you should make sure your packaging conforms to rigorous packaging set by the LTL common carrier industry as this will eliminate most claims and eliminate carrier rejections of your claims due to "Insufficiently packaging."

Feel free to contact us prior to shipping with any questions you may have in regards to how to pack your freight.