The increase in freight across the US is projected to continue. In fact, it is expected to grow to more than 35 billion tons of freight with a value of at least $37 trillion by 2045, according to the Federal Highway Administration (FHWA). That’s a lot of freight and a lot of revenue up for grabs.
Of course, with this growth and the continued capacity issues, it also means freight rates are on the rise and not projected to come down anytime soon. As such, shippers are looking for ways to decrease freight spend. One way they are doing that is by expanding their less-than-truckload (LTL) shipping. So, how can shippers and 3PLs effectively grow their LTL business in this market?
Tips to Increasing Less-Than-Truckload Shipping
LTL shipping has many benefits for companies of all sizes. To implement a successful LTL strategy into your company or increase your already existing LTL, follow these three tips.
Add automation technology. When adding or increasing LTL services, automation technology and systems helps streamline the process and saves time and money. By using a transportation management system with APIs, you will get real-time access to all preferred carrier rates and transit times. Shipments can be booked and confirmed directly with the carrier all within seconds/minutes. It also helps improve visibility, tracking and invoicing for all LTL shipments. It gives your company access to data that can then be shared with carriers to improve relations and make better decisions on freight in the future. Additionally, the end-to-end automation allows your team to focus on shipping exceptions and other issues that require personal attention.
Combine LTL strategy with ecommerce. Customers expect easy shopping and shipping processes when they shop online. To meet customer expectations, companies must embrace omnichannel and LTL shipping. By combining these strategies, companies can save time, reduce paperwork, increase accuracy in freight quoting, reduce accessorial fees, improve processes, lower freight costs and improve customer relationships. Additionally, by integrating ecommerce with LTL, freight visibility and tracking is improved while costs are shippers, making customers happy.
Expand your network and establish good carrier relationships. For the best LTL rates and best shipping experience, use multiple carriers. Establishing a good relationship with more LTL carriers will open your choices for lanes and allow you to choose the best carrier in each lane, resulting in lower prices and possibly faster transit times. Sharing as much information as possible about your freight will help ensure trust between your company and the carriers.
Are You Ready to Grow Your LTL Business?
As LTL shipping becomes more and more popular, it will continue to be a great source of revenue for businesses. While it can be more complex than parcel or full truckload, with automation technologies, it is easier than ever before. Don’t miss out on this growing revenue stream. Add LTL services to your business today.
If you have any questions regarding adding automation or APIs to increase your LTL business, reach out to the Banyan Technology sales team at 1.844.309.3911.