Production Machining

SEP 2018

Production Machining - Your access to the precision machining industrial buyer.

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productionmachining.com :: 19 Helping Precision Machine Shops Be More ProducƟve and Proftable Truckload Shipping 101 The following article is taken from a PartnerShip white paper. PartnerShip has decades of experience managing small- package and truckload shipping for thousands of businesses. PartnerShip is one of the many free PMPA member benefits and helps members save on inbound, outbound, small and large shipments through its PMPA Shipping Program. To download the full white paper, visit partnership.com. Truckload freight refers to a large shipment (typically more than 10,000 pounds) that fills an entire semi-trailer. According to Morgan Stanley Research commissioned by the American Trucking Association (ATA), the for-hire and private truckload market is $630 billion annually or 75 percent of the total domestic freight transportation market by revenue. To better help customers understand the specifics and benefits of this mode of transportation, this article will outline: • What constitutes a truckload shipment • The benefits of shipping truckload • How to obtain accurate quotes to ensure savings What is Truckload? The easiest way to define truckload, and its associated requirements and charges, is to compare it with the other most commonly used shipping mode: Less-Than-Truckload (LTL). Truckload averages 20,000 pounds, with a minimum of 10,000. LTL runs from 150 to 10,000 pounds, with an average shipment of around 1,200 pounds. While LTL is typically palletized and is priced based on weight, destination, class and accessorial charges, truckload is typically charged by a per-mile rate and packaged in a number of different ways. The biggest difference between the two modes is in how and when a shipment will leave and arrive. LTL shipments usually share the ride with several other shipments, with several stops along the delivery path to load and unload other LTL shipments. Truckload shipments have only one shipment, and stay on the same trailer from loading at point A to delivery at point B. Last, while there are about 125 LTL carriers nationwide, with the top 25 handling 85 to 90 percent of all LTL shipments, there are well more than 100,000 companies acting as truckload carriers. Benefits If a company has correctly identified a shipment as truckload, what are the benefits of a truckload move? Major benefits to shipping truckload verses other freight moves, such as LTL, is that companies greatly reduce the risk of damages, increase the speed of transit, receive better insurance coverage, and no freight class is required. This can all be achieved because of the simple fact that the freight is staying on one truck throughout its entire trip. LTL shipments pause at different stops, move the freight on and off the truck, put other shipments next to yours and this is all usually done multiple times throughout transit. It's easy to see how the margin of error (for damages, losses and delays) increases significantly during transit. Continues on page 20

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