LTL sector uses technology to alleviate pricing, tendering, and billing inefficiencies. While LTL shipment is becoming more automated, it’s still a humanly run subset of trucking.
LTL loads and carriers vary widely.
An old categorization and coding system makes it difficult to price freight correctly, requiring re-ratings and modifications. Some carriers charge per pallet, foot, or hundredweight.
Accessorial costs for limited access, residential delivery, by-appointment, or liftgate add another degree of flexibility. Shipments can be tendered by phone, online, TMS, EDI, or API. Invoicing uses many of these strategies. The group lacks consistency.
Curtis Garrett, chief strategy officer at Reconex, previously Recon Logistics, told FreightWaves that there are few industrywide common protocols, integration models, and data flows. Reconex helps shippers handle LTL transportation challenges.
“Between carriers, shippers, and 3PLs, there are millions of individual LTL program frameworks. Garrett continued, “That’s too numerous and complex.”
Cross-participant councils and communities are revising best practices and advancing the industry’s progress, but the process must be codified. Shiplify provides real-time location data to enable carriers accurately forecast customer accessorial charges.
Old Dominion (NASDAQ: ODFL) said last week it will offer shippers an all-in rate option before pickup. The trial will reward digitally-connected shippers with better prices.
“The shipment’s features, operating requirements, service expectations, and price should be locked in as much as feasible before the freight is picked up,” Garrett added. Digitizing tendering and deploying electronic bills of lading via API enhances data flow between carriers and shippers.
Standardizing the procedure among carriers is required, but he said it may be tough because the $50 billion sectors is dominated by a few huge operators that have spent decades establishing their own systems.
“The LTL framework that all shippers, and carriers play within must be developed, integrated, and adhered to,” Garrett added. “LTL expenses should be space-driven. Shippers must supply accurate dimensions and weights.
Once the benchmark is set, he believes “the others will fall in line”
Garrett said LTL needs to solve any visibility gaps, align the invoice with the quote, end empty miles and unused capacity, break down silos, and build more standards with more collaboration and trust.
