| LTL (Less than Truckload) shipping is the most | | | | When a shipment is set up to be moved with a |
| common mode of shipping products by using a truck. | | | | carrier, it is important to inform the carrier of all |
| A LTL carrier will pick up several small shipments | | | | services that will be required to pickup and deliver |
| from customers that do not require the entire trailer | | | | the shipment. A carrier's base rate service will only |
| to be used in getting the product to their customers. | | | | include the freight being loaded by the shipper when |
| In essence, they are renting space in the back of the | | | | the carrier backs up to their dock, moving the freight |
| trailer. Once the carrier has made all of their pickups | | | | through their network and then delivering it to the |
| for that day, they will bring the freight back to their | | | | consignee's dock and the consignee unloading the |
| terminal. Is is also likely a terminal will also receive | | | | product. If a carrier is needed to provide any service |
| freight from other terminals that were picked up on | | | | above and beyond that description, additional fees, |
| the previous days. | | | | known as accessorials, will be added to the base rate. |
| That freight, along with the current day's pickup, will | | | | Example accessorial services include lift gate pickup |
| be sorted and reloaded on other trucks based on | | | | and delivery, non-commercial pick up and delivery, |
| their final destination. When a terminal receives freight | | | | arrival notification, fuel surcharge, inside pickup and |
| from other terminals, this terminal is referred to as a | | | | delivery. |
| break bulk point. From a profitability standpoint, it is | | | | The fees a carrier charges their customers are based |
| very important to a LTL carrier that they have as | | | | on a percentage discount off of a tariff. The term |
| many trucks full of product moving from location to | | | | tariff refers to the fees and rules applied by a carrier |
| location. The main purpose of a break bulk point is to | | | | for its services. Many carriers will create their own |
| ensure that the carrier is able to properly plan out | | | | tariffs every year. They will update these annually to |
| their network of trucks moving a certain amount of | | | | allow them to insert any pricing increases/decreases |
| freight. | | | | for each lane combination their network will service. |
| Once the freight has arrived at the destination | | | | Typically carriers will increase their overall pricing by |
| terminal, the carrier will deliver the product to the | | | | about 7 percent each year and will announce these |
| consignee. When a LTL carrier delivers the product, | | | | new tariffs around June of each year. Carriers will |
| they will require the receiver to sign a proof of | | | | assign a tariff to a customer based on the volume |
| delivery (POD) certificate to document when the | | | | and type of freight a customer ships. Discounts |
| product was received, who received the product as | | | | generally average between 48% and 72% off a |
| well as to document that all of the product was | | | | base tariff rate. Low discounts are assigned to low |
| delivered in good condition. if the shipment is received | | | | volume shippers. Higher volume customers will be able |
| damaged and or short the amount documented on | | | | to negotiate higher discounts based on tariffs |
| the BOL, it is very important the receiver document | | | | created in previous years. |
| these issues to allow the carrier to process a claim. | | | | |