Yesterday we discussed Case Cubes and Full Load Shipments. So today what is LTL?
Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc
Yesterday we discussed Case Cubes and Full Load Shipments. So today what is LTL? Because everyone needs to use both.
LTL is a shipment that does not fill a truck. The less-than-truckload (LTL) industry provides transportation of partial-load shipments that go to one or more destinations or full trailer-load shipments going to multiple destinations. The LTL is a $39 billion industry and is comprised of two distinct segments, national LTL, and regional LTL. The national LTL participants operate a “hub-and-spoke” network with an average length of haul of 1,200 to 1,400 miles. Growth is dependent on accelerated economic activity and competitor failures. The estimated size of the national LTL segment is $12 billion. The regional LTL segment is characterized by numerous carriers, typically non-union, that operate a modified hub-and-spoke network, with an average length of haul of 200 to 600 miles for most freight. Growth in this segment is dependent on consolidation within the marketplace, the shift toward more regionalized freight patterns by shippers, and general economic growth. The regional LTL segment is highly fragmented, with the top 20 participants accounting for roughly 50% of the estimated $27B market. http://www.stephens.com/research/industries__companies/transportation/truckload__less-than-truckloa.aspx
SafeSourcing is an eprocurement company that operates across multiple industries. As such we have specific experience in almost any commodity, service or capital related spend including shipping and freight costs. Our SafeSourceIt™ Global Supplier Database is an often-used source for these freight suppliers. To learn more, please contact a SafeSourcing customer services associate.
