Full truckload (FTL) and less than truckload SHIPPING (LTL)

What is a Full Truckload?

A Full Truckload (FTL) means the quantity of products (which can be bulk/liquid), which is sufficient to fill in a Full Truckload, or otherwise, it is preferable to select a dedicated truck for a partial load taking safety or security of the load shipment into consideration. Another shipment, which is contrary to FTL, is Less than Truckload (LTL). LTL means that multiple, i.e. more than one, orders or cargoes are combined into one Truckload, and is typically used by a third party of logistics (3PL) operators, who combine shipments from multiple customers together into one load in a hub-and-spoke network.

Why optimize Truckloads to Full Truckloads?

Optimizing truckloads to Full Truckloads (FTLs) improves the use of trucks and reduces transportation costs, the number of deliveries, the risk of damage and empty mileage (as a result of shipping less air in a trailer). Moreover, this transportation way improves the impact on the environment through less CO2 emissions.

How to develop and to optimise Full Truckloads?

The first step probably would be splitting up large volumes (e.g. from a supplier to a producer) into FTLs. Carrying out this step in an optimal way reduces transportation costs, number of deliveries, and risk of damage to products caused by an extra space in the trailer. When FTLs are defined, the second step would be assigning FTLs to resources in order to minimise empty mileage/time between two orders (from a delivery location to the next loading location) and satisfy all requirements provided. Minimizing empty mileage leads to reduction of costs through better truck utilization and an increase in the amount of orders delivered per resource.

There are steps involving multiple decisions with FTLs, i.e. developing them and assigning them to resources. We distinguish three steps as follows:

  1. If the customer orders are not specific, but there is an expected/forecasted demand, a current stock level, as well as a minimum and maximum stock level, the employee optimising the process and the shipment is able to compute an optimal delivery schedule for an upcoming period, taking these restrictions into consideration.
  2. When transportation costs are very important and the budget is restricted, developing/creating of FTL orders is thoroughly focused on. When the customer places their orders, which usually consist of large volumes of multiple orders, then it is required that a good specialist optimising shipments and their processes must minimise the quantity of FTL orders basing on detailed information of the product such as its length, width and height, as well as stacking and loading requirements.
  3. Optimizing the assignment of FTL to a certain truck or a driver should be carried out in the way that the use of driver is maximised while empty mileage between two FTL transports is minimised.

What results of optimizing truckloads to Full Truckloads can be expected?

Optimizing Truckloads with FTLs every company is able to achieve beneficial and profitable results and to reduce:

  • Transportation costs,
  • Quantity of deliveries,
  • Risk of damage (as a result of shipping less air in the trailer),
  • Empty mileage,
  • Impact on the environment through less CO2 emissions.

Furthermore, FTLs effectively improves the use and employment of truck what increases the amount of orders per resource.

Serviced countries: Portugal, Spain, France, Ireland, United Kingdom, Luxembourg, Belgium, Netherlands, Denmark, Italy, Austria, Slovakia, Slovenia, Czech republic, Hungary, Romania, Bulgaria, Bosnia and Herzegovina, Serbia, Turkey, Lithuania, Latvia, Estonia, Sweden, Finland, Norway.

 

What is Less than a Truckload?

Less than Truckload (LTL) is a shipment, the volume of which is too big for express carriers; however, it is too small or just incomplete truckload for a standard shipment.

Why to optimize Less than Truckload (LTL) to Full Truckloads (FTL)?

The main advantage of employing an LTL carrier is that shipment can be carried for the cost consisting of hiring an entire truck for an exclusive shipment. With LTL shipment, the shipper or forwarder pays only for the volume of space used on the truck. For example, if production covers only a quarter of the truck, the shipper or forwarder has to pay only a quarter of the cost for the truck. The rest of the truck is loaded with cargos of other companies or customers who also want to save some money on their smaller shipments. Transit times are, however, longer with LTL loads comparing to FTL loads. While FTL can be shipped directly from point A to point B, LTL must usually be picked up, shipped to a hub, loaded into another truck (including waiting time for other loads/cargos to be added), then FTL line haul transport to a hub near point B, be unloaded into another truck and then delivered to point B.

How to optimize Less than Truckload (LTL) to Full Truckloads (FTL)?

Using an LTL carrier is very similar to using an express parcel carrier. Both LTL carriers and express parcel carriers employ the network of hubs and terminals for delivering their freights. Delivery times by service providers of both types are not directly dependent upon the distance between the origin and the destination, but they are likely more dependent on the distance to hubs, and how many times the freight must be loaded and unloaded during the shipment.

Serviced countries: Portugal, Spain, France, Ireland, United Kingdom, Luxembourg, Belgium, Netherlands, Denmark, Italy, Austria, Slovakia, Slovenia, Czech republic, Hungary, Romania, Bulgaria, Bosnia and Herzegovina, Serbia, Turkey, Lithuania, Latvia, Estonia, Sweden, Finland, Norway.

Benefits of working with BALTIC FLEET MANAGEMENT UAB:

  • Daily departures involving standard and express services,
  • Direct import/export services in all European countries,
  • Distribution hubs in the whole Europe,
  • Fleet provided by certified and reliable subcontractors,
  • A variety of trailer types: Huckepack, megatrailer, tarpaulin, box, container, thermos and etc.,
  • Constant tracking of cargo shipped and reporting about that to our customers,
  • Provision of all-risk insurance for your commodities and goods in addition to a regular CMR coverage as it is required by the law,
  • Customs clearance,
  • Internal customer service.