Businesses have different choices when choosing how to ship goods and cargo across the country or border. Various options exist depending upon the materials, the shipping cost, business size, and nature of shipping. Businesses dealing in supply chain operations use freight shipping to transport products and goods by land, air, or sea. There are a few options for shipping by land, including truckload shipping. Truckload shipping helps in the movement of goods and cargo by trucks and transport on roads. Businesses usually have two options to move their freight- less than truckload (LTL) and full truckload (FTL) shipping. There are a few challenges as well as advantages to each of the shipping methods.
What is Full Truckload Shipping (FTL)?
Full Truckload Shipping (FTL) refers to the transportation of a single type of cargo in one truck. One entire truck is booked and loaded with products, usually of similar type, from a single shipper. This differs from LTL, where multiple shippers load their products in a truck. In simple words, the FTL method reserves the entire space available in the truck. The truck is loaded with cargo to its maximum capacity. Even if the shipment does not utilize the entire space, the remaining space is not filled by other shippers as only one shipper is paying for the truck. Whenever a large shipment needs to be transported or there is cargo that requires space and cannot be packed closely, FTL is the best option. How Many Pallets are Considered FTL? The most commonly used pallets for freight shipping come at a standard size of 48” X 40” and a height of 6”. A standard pallet of this size can hold up to 4,600 lbs.
Since trailers for FTL are long, almost 50-53 ft, 24 or more pallets take up FTL space. These pallets generally cover the entire space of the truck. Trailers used for freight transportation can carry weight somewhere between 42,000 lbs and 44,000 lbs. Due to heavy pallets, the freight often exceeds the truck load capacity. In such a case, pallets of the same size are used, but the trick is to distribute the weight. The truck may contain more space for pallets, but it cannot be loaded due to its limit.
How Does it Work?
Cargo in the FTL shipping stays in the same truck till it arrives at its destination. Once the truck is loaded at the dock, it is driven without changing vehicles or assigning other drivers to deliver the freight to its final destination. In the FTL shipping mode, common trucks used are dry van, flatbed, and refrigerated. Dry van: It is typically a 48 or 53-foot trailer used to move dry goods. It is covered on all sides and is usually connected to another trailer. Flatbed: This trailer has no walls or roofs, and shipments can be loaded and unloaded from any side. Since the trailers do not have a door, they are ideal for large freights. Refrigerated: Temperature-sensitive products like chemicals, medicines, and certain food items are transported in refrigerated trucks. Using a reefer unit, the temperature of the freight is controlled. This is usually more expensive than the other types.
Benefits of FTL Shipping
There are some unique advantages of using the FTL mode of shipping. Both small and large companies can benefit from FTL if they have large freights to move. Ensures safety for sensitive goods: Products are loaded at the dock and remain undisturbed till they arrive at the destination. This reduces changes of damage and is ideal for temperature-sensitive or fragile products. Less transit and handling: Since multiple businesses do not use FTL, and only a single business’s freight is loaded, the truck won’t take different routes or halt at numerous stops. This reduces transit and handling significantly. Cost-efficient: When companies have heavy and high volume loads, typically more than ten to twelve pallets, using FTL becomes cost-efficient. They do not have to load multiple trailers, making transporting cargo economical. Speedy delivery: Since FTL travels from point to point and avoids unnecessary halts, the time taken to reach the destination is minimum. There are no other drop-offs along the way in FTL mode, which is often the primary reason for trucks driving through multiple routes.
When to use FTL Freight Shipping
In the freight shipping industry, businesses turn to FTL in situations when they need to utilize the entire truck space. For certain situations, where a large cargo or pallets of more than ten are waiting to be shipped, it is wise to use FTL mode. Using many pallets at a single time can increase the cost of shipment if shippers have to use more than one trailer with multiple clients. For businesses that ship large freights frequently, FTL can prove to be cost-effective and can cut down the shipping cost reasonably. They do not have to pay for multiple trucks. In addition to reducing cost, FTL is ideal for shipment containing fragile or delicate items that need careful handling. Another factor to help businesses make up their mind about FTL is that it is ideal for homogenous goods. Shippers sometimes transport goods that cannot be mixed with other goods. Full truckloads tend to be suitable for shipping such goods.
Consider using FTL when: Cargo contains temperature-sensitive products that require cold packaging
- Products require special or careful handling
- Fast delivery is required
- Shipping high-value items
- Cargo requires full truck space
- A large amount of freight is transported
When is FTL shipping not suitable?
There is no doubt that using FTL as a shipping mode has many benefits. But there are certain drawbacks as well. Not all businesses have the same needs, and choosing FTL when not needed can lead to some significant losses. Firstly, the cost needs to be adequately analyzed. A company hiring FTL for shipment of a small freight is not cost-effective. Even in the case of big companies, if space is left after primarily loading the truck, it may lead to extra costs. Also, products need to be stacked correctly and in balance. If the truck space is not fully utilized, it can damage products. Shippers must ensure that products do not move about inside the trailer. What factors impact FTL freight rates? In the truckload businesses, prices fluctuate. But carriers are upfront about pricing, and businesses can get a quote once they mention their freight needs. There are a few factors that impact FTL freight rates which include: The distance the freight is shipped: Regional carriers have different pricing from state carriers. The farther the shipment is traveling, the higher the cost will be. Flexibility and speed of shipping: Rates get affected when clients customize the route or do not have flexibility around shipping times. Expedited shipping is expensive. Shippers can expect standard rates if they agree to the convenience of the carrier company. Seasonality: During seasons, particularly the produce season and Christmas, as the demand for trucks increases, the rates tend to go high. Type of trailer needed: Refrigerated trucks have higher rates than dry vans. So, the rates depend on the type of freight being transported. Fuel costs: When fuel costs go up, FTL rates also become expensive. As the fuel price drops, the rates for FTL go down as well. Availability of the truck lane: During seasons, as the freight lanes get constricted, rates for FTL are affected.
Is FTL cheaper than LTL?
Anybody who is aware about FTL and LTL will know that FTL is not cheaper. But again, it varies from business to business. FTL requires shippers to book an entire truck. If there are many pallets to ship, and the truck's space is occupied by a single client’s pallets, then it is undoubtedly the best option and cheaper too. But in instances where the client has flexibility with shipping and has fewer pallets to ship, it is best to choose LTL. This mode allows numerous clients to fill up the truck volume. The truck makes multiple drop-offs and reaches each destination at various times and days. So, whether the shipping mode is cheaper for the client depends on their circumstances and requirements.
What are FTL and FCL?
FTL stands for Full Truckloads, and FCL refers to Full Container Load. These two are the same concept, only the mode of shipment is different. While truckload freights are for shipment by land, full container load is for ocean freight. Similar to the concept of FTL, in LCL, goods of the expediter are sealed in a single container. The benefits are plenty, including reduced damage to cargo and quicker transit time.
