Less than truckload shipping, or less than load (LTL), means that when a batch of goods is consigned, it is not economical to load inadequacy or occupy the whole wagon (or the whole transport car) with a small consignment for transportation. The transportation department arranges and assembles the other consigned goods together, and charges according to the tonnage and kilometers of the consignment.
Problems with LTL
There is a certain degree of uncertainty in the cargo flow, quantity of goods, and direction of transportation for LTL, especially due to the different products and prices in different regions, coupled with seasonal effects and macroeconomic policies of national government departments, it is difficult to incorporate it into the scope of plan management by means of transportation contracts.
b. Organizational complexity
There are many freight procedures, various types of goods, different specifications, detailed workmanship, and relatively high requirements for cargo stowage and loading in less than truckload shipping. Therefore, as the main executor of LTL cargo transportation operations, that is, freight stations, it is quite complicated to complete a lot of business organization work, such as confirming the quality and stowage of LTL cargo.
c. Higher unit transportation cost
In order to meet the requirements of less than load transportation, freight stations should be equipped with certain warehouses, cargo grids, platforms, and corresponding loading and unloading, handling, stacking machinery and special boxcars. In addition, compared with the transportation of the whole vehicle, less-than-truckload cargo is more prone to damages and shortfalls, and the compensation costs are relatively high, resulting in higher costs of less than truckload shipping transportation.
In addition, LTL cargo transportation also has the following characteristics: suitable for a wide variety, small batches, multiple batches, tight time, and scattered arrivals. Its flexibility can be door-to-door to collect and deliver goods for competitive and seasonal cargo transportation. The procedures are simple, which can effectively shorten the delivery time of the goods and speed up the capital turnover.
The flourishing development of e-commerce has brought many growth opportunities to the LTL logistics market, however, there are also problems.
How does GPS tracker solve the problem of less than load (LTL)?
Beidou / GPS / LBS / WiFi multiple positioning: help less-than-load vehicles to record the actual driving route of vehicles, and resolve disputes over cost settlement.
Welcome to contact us if you want to learn more about how Jimi IoT solve the problem of less than load (LTL).