504 – Two Underused Services: 100weight & LTL


September 19, 2017 12:00 pm - 12:50 pm

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Transportation Planning

Many parcel shippers also ship less-than-truckload (LTL). In fact, it’s the reason the parcel carriers acquired freight carriers and now operate two of the largest LTL companies in the US. We find that many shippers might have appropriate parcel discounts but are paying too much for freight. Moreover, LTL spend is often not leveraged to improve parcel incentives. Heavier, larger shipments are becoming more common and are now incurring $110 surcharges. Both FedEx and UPS significantly increased “unauthorized” and “over maximum limits” surcharges, as they claim these types of shipments are becoming prevalent—and disrupting carrier operations—to such a degree that it required a service guide change along with a hefty financial penalty. You will be able to take actionable information back to your company and deploy strategies that make the most sense for your business and distribution characteristics.

LEARNING OBJECTIVES

  • Understand both carriers CWT programs and the LTL marketplace
  • When these services are viable alternatives to traditional parcel shipping
  • Pricing structures and advantages and disadvantages for each mode
  • Technology is needed to deploy these strategies
  • Contract nuisances and carrier incentives
  • Transit times
Chris Franzen