LTL Shipping Contract Management
LTL Contract Types
LTL Pricing Options
Less-than-truckload (LTL) shipping involves the transportation of relatively small freight (1-6 pallet spaces.) There are several contract types and pricing models used in LTL shipping to accommodate different needs and scenarios:
- Normal Tariff Based LTL Pricing: This is the most common type of LTL pricing model. In this model, carriers have published tariffs that outline rates for different lanes, classes of freight, and additional services. Customers are charged based on these published rates, which may vary depending on factors such as distance, weight, class of freight, and any accessorials or additional services required.
- Density-Based LTL Pricing: Density-based LTL pricing takes into account the density of the freight being shipped. Density is calculated by dividing the weight of the shipment by the volume (in cubic feet). Freight with higher density (more weight per cubic foot) is charged at a lower rate compared to freight with lower density, as it takes up less space in the trailer relative to its weight.
- Point-to-Point LTL Pricing: Point-to-point LTL pricing involves negotiating rates for specific lanes or routes between two points. Instead of relying solely on published tariffs, shippers and carriers negotiate rates based on the unique characteristics of the shipment and the lane. Point-to-point pricing allows for more flexibility and potentially lower rates for high-volume or regular shipments between specific locations.
- Linear-Based LTL Contracts: Linear-feet LTL contracts are a type of negotiated pricing agreement where rates are determined based on a linear pricing curve. This means that as the volume or weight of the shipment increases, the per-unit cost decreases incrementally. Linear-based shipping contracts are often used for high-volume shipments or long-term partnerships between shippers and carriers.
These are some of the main types of LTL contract types and pricing models used in the industry. Depending on the specific needs of shippers and carriers, other variations and combinations of these pricing models may also be utilized. TLI partners with shippers to construct shipper profiles based off historical shipment history, that is ran through a rating engine simulator, that uses Artificial Intelligence to rate the historical sample against the proposed contract to determine the least cost provider scenario.
LTL Shipping Services
LTL Logistics Services
| Shipping Service | Diamond Service Description |
|---|---|
| Mode Optimization | Dedicated Team Focused on Improving Your Cargo: Automated Identification of Volume Rate Opportunities for Assigned Shipments. |
| ERP Integration | Seamless ERP to TMS Integration: Carriers connected through EDI/API for automated load tendering and tracking, with our vigilant team overseeing any exceptional cases. |
| Rebate Program | TLI presents a unique rebate initiative tailored for Diamond shippers, ensuring added value and rewards for your shipping needs. |
| Contract Forecasting | Leveraging historical data and our advanced rating engine, we provide precise insights into potential savings with TLI by strategically adding or removing carriers. |
| NMFC Management | TLI takes charge of NMFC management by methodically entering precise codes into the system, ensuring swift and automated retrieval. |
| Contract Management | Utilizing advanced data analysis tools, TLI examines historical shipping data, identifying patterns, peak seasons, and areas where efficiencies or cost savings can be realized. This data-driven approach helps in formulating a customized carrier pricing strategy. |
3rd Party Services
The diamond model features specialized support teams extensively trained to comprehend and fulfill your specific shipper requirements, all backed by the cutting-edge ViewPoint TMS System.
On the other hand, the Diamond model prioritizes offering dedicated operations support tailored for diamond accounts. This focus has led to significant customer satisfaction and a remarkable 37% increase in internal operational efficiency, as confirmed during beta testing with prominent shippers. We are pleased to announce the immediate extension of this adaptable and personalized model to all our esteemed diamond shipping partners.