What is Density Priced Shipping?
Density-based pricing is not new and has been employed by parcel carriers, air, and ocean transportation. This shipping contract type is seen as a response to truckload optimization for LTL carriers. Essentially, density pricing means that the shipping cost is determined by the package volume relative to its weight, aligning with the space it occupies. This method combines the physical volume and actual weight of a shipment to ascertain the shipping cost, known as the dimensional weight method.
TLI Trailblazed Density Based Shipping
TLI stands out as one of the first four, pioneering freight brokers to embrace density-based pricing, a groundbreaking approach in the freight industry. If you have dense freight, and this is contract is not being currently utilized, your current freight broker or TMS system may not enable this contract type. This innovative pricing model, easily offered through TLI, has since become readily available to all shippers, offering a competitive edge, particularly for those with dense freight. Unlike traditional methods reliant on
NMFC classification,
density-based pricing leverages the relationship between package volume and weight, allowing for more accurate and cost-effective rate determinations.
Automated Density Calculation
TLI's advanced TMS system further streamlines this process by integrating a density-based calculator. This feature automates calculations of weight per hundredweight (cwt) and pounds per cubic foot (pcf), eliminating the need for manual computations by shippers. This user-friendly interface empowers shippers to tap into the benefits of density-based pricing effortlessly.
Real Life Example:
For instance, consider a shipper in the Midwest with dense, heavy freight shipments. By utilizing TLI's density-based pricing through their TMS system, the shipper can route their shipments at a significantly more economical cost compared to traditional
LTL tariffs. This optimized approach ensures that the shipper maximizes cost savings while maintaining efficient logistics operations, illustrating the tangible benefits of adopting density-based pricing in freight management.
