E-commerce is booming. In 2023, more than 4.18 billion shipments were transported by road freight transport, and the trend is rising. In 2027, the Federal Association of Parcel and Express Logistics estimates this to increase to 4.9 billion shipments.
The advantage here is that consumers receive their packages within a few days and remain loyal to the retailer. The disadvantage, however, is that there are often empty journeys and trucks are only being used insufficiently or even not at all on certain routes. This in turn pollutes the environment and increases CO₂ emissions.
To help companies save time and money when shipping general cargo, you can book smartly with partial or ‘less-than-truckloads’ (LTL). On the one hand, this ensures full utilization of the means of transport and, on the other hand, has a positive effect on the ecological footprint.
Find out here what partial loads are, how you can optimize your freight management through shipment bundling, and how modern technology makes route planning more efficient.
What is LTL and how does it work?
LTL is an abbreviation and stands for “less-than-truckload”. LTL transportation refers to the transportation of light freight that is shipped together with partial shipments from other merchants. This makes optimal use of the cargo space and reduces freight costs. The general cargo transport of boxes, barrels or packages on pallets enables shipping volume optimization as well as cost-efficient logistics.
Not every retailer can afford to fill a full truckload (FTL) to transport their goods or to wait until enough orders have been received. This would take too long or cost too much for some companies.
LTL logistics is the optimal solution for sending goods quickly and efficiently without having to fill the entire space of the means of transport. This also has a positive effect on customer satisfaction and the company’s profitability.
Using partial loads for freight consolidation
To use LTL shipments effectively, you should first analyze the supply chain to understand planned and unplanned freight needs. Once the need is determined, you can start to consolidate your shipments. This involves bundling freight together to simplify the supply chain and reduce distribution complexity in the flow of goods.
Another element of this practice is the consolidation hubs, along with general cargo consolidation. General cargo consolidation is where several LTL deliveries of general cargo are combined in the same means of transport, in order to optimize use of freight space, avoid empty trips and thereby save costs.
Consolidation hubs are intersections where pallets are sorted and put together to ensure the highest possible truck utilization. Since freight is often reloaded several times in LTL freight transport, efficient partial load solutions can be guaranteed even in the event of interruptions.
Freight cost reduction through innovation
There are numerous digital tools to optimize your freight and logistics management. This includes, among other things, route optimization, freight management, delivery time optimization, as well as maximum loading space utilization in order to reduce gasoline consumption.
A transport management system (TMS) is also used to save on cost. At Amazon Freight, we take care of efficient route planning and freight capacity utilization to guarantee high transport efficiency in partial load shipping.
Example of digital route planning at LTL
For example, our system can calculate the probability of a driver reaching their destination on time, predict an estimated time of arrival, and determine how likely the arrival estimate is. If disruptions occur, the information is transmitted directly to our system and the routes are automatically adjusted for the driver.
If a driver’s first load is delayed, we can reschedule the route so that the driver does not have to wait for the cargo, or try to meet the original schedule in a shorter time.
Challenges and solutions in LTL shipping
Despite technological innovation, challenges still arise in LTL logistics. In order to guarantee the highest possible loading space utilization, trucks have to make intermediate stops to load and unload pallets at their start and destination locations. This can lead to delays, loss of cargo or damage.
However, GPS tracking can prevent such incidents. In the digital dashboard you can always keep an overview of where your goods are and when they should arrive at their destination.
Efficient LTL transport with Amazon Freight
Amazon Freight offers extensive LTL consolidation freight forwarding services. We work with thousands of trusted carriers and offer AI-powered route planning, GPS tracking, and more to help you save time and money when shipping your less-than-truckloads.
Create a customer account today or contact us at: freight-eu-interest@amazon.com. We’d be happy to advise you.