There are times when even UPS can not deliver what you need shipped. Packages that weigh more than 150 lb. or that exceed 130 inches when you add up the width, depth, and height can be rejected by standard small package delivery services.

For these items, your best bet is to turn to less than truckload (LTL) carriers. Much as their name suggests, these shipping firms specialize in transporting items that take up less than a truckload. These companies commonly ship items weighing 600 to 1,000 pounds, and can be relied on for packages up to 10,000 pounds.

This buying guide is designed to give you the facts you need to find a less-than-truckload shipper for your outgoing packages. You can choose to read this guide from beginning to end, or jump directly to a section of interest by clicking on the links above.

How LTL Carriers Work

Every day, LTL carriers face the logistical dilemma of having to create transportation routes that will allow them to be profitable but will still get packages delivered swiftly. To do so, LTL carriers typically operate through a hub system. An LTL carrier picks up packages from multiple customers, transports these items to a local terminal, and then consolidates goods traveling the same route onto the same truck.

Although most carriers will accept your shipment for delivery, not every LTL firm will handle your shipment from beginning to end. Many LTL carriers only serve specific geographic regions to increase the chance of conveying full loads. If a shipment is sent to a location outside a carrier's normal service area, the trucking company will arrange to transfer the shipment from the edge of its service area to another LTL for final delivery. This practice is called interlining.

There are a number of trucks that are used for LTL shipping. Smaller shipments are typically conveyed in up to 26-foot long covered trucks, with covered trailers used for larger shipments. Oversized shipments that won't fit in either design can be shipped on flatbed trucks.

Finding a Carrier

With so many different LTL carriers on the market, it can be difficult to know which ones to choose. However, there are several industry measurements that you can use as a proxy for reliability.

The first consideration, particularly for longer distance shipments, is the delivery schedule and the number of times the package will be interlined. Longer shipping times and more interlining often suggest that a shipper cannot efficiently deliver your shipment. This may result in higher costs, and creates more opportunities for something to go wrong during interline transfers.

A second statistic to consider is on-time delivery. This indicates how often a firm meets its declared delivery schedule. A good firm will typically quote on-time delivery rates in the mid to high nineties.

A final area to examine is the claims to damage ratio. This ratio measures the percentage of revenue paid out in claims for problems caused by loss, damage or theft. The industry average is 1.25%-1.4%. You should use a company with a similar or lower ratio.

Features

One of the most popular features offered by LTL carriers is expedited delivery, the shipping industry's equivalent of a rush job. To deliver packages faster, carriers bypass their hubs, which decreases shipping time but adds substantially to the overall cost.

Another popular feature is shipment tracking. Shippers that offer tracking services have radio networks that keep all trucks in constant communication with headquarters. This allows the carrier to locate your shipment at any time.

Saving Money

When using an LTL shipper, always ask for a discount. Simply asking can save you up to 15%, even on single shipments. For firms that ship large amounts, discounts of 35%-60% are not uncommon.

Companies that do not frequently use LTL carriers can access higher levels of savings by combining their shipping volume with other companies, either by joining a shippers association, such as Merchant Shippers Cooperative Association (603/226-0144) or NASSTRAC (202/393-5505).

Another option is to use a logistics management company. These companies place shipments and negotiate discounts based on the total shipping of their client base.

Delivery Charges

Determining delivery charges for LTL shipments is much more complex than for small packages. In addition to the weight of the shipment and the distance it must travel, you must also specify a shipping classification. Shipments are classified on a scale from 50 to 500, according to a package's density, value, fragility, and storage requirements, with higher numerical ratings indicating higher per pound transportation costs.

To learn the class of your shipment, you can consult an LTL carrier or you can purchase the National Motor Freight Classification listing through the American Trucking Association (703/838-1700).

The final cost will include accessorial charges. These are extra charges for services such as storage, contacting the recipient or delivery to companies without loading docks.

Buying Tips

Establish an Account
Establishing an account can reduce costs. Not only will you get discounts, but you are also billed later instead of having to pay in advance. This can be helpful if a problem arises with your shipment.

National Carriers
If you have to ship over 1,000 miles, you may want to consider a national LTL carrier over a regional carrier. These firms offer the advantage of not having to interline packages traveling long distances.

Alternative Programs for Large Shipments
Cost-effective alternatives to LTL shipping are the Multiweight and Hundredweight programs offered by RPS and UPS. These programs offer a discount for multiple packages totaling 200 pounds or more that are all going to the same address. As long as each package meets individual UPS/RPS size requirements, you will get 10%-20% off the regular UPS/RPS rates. This is often cheaper than sending a full pallet via an LTL carrier, although you will need to individually label and pack each box.

Rush Jobs
If packages need to arrive at their destination in a hurry, consider using an air freight forwarder. These services specialize in the immediate delivery of heavyweight goods via air. Companies are often able to secure a much better rate for delivery than if they were to work through a branded national overnight delivery service.

Finding Carriers Serving a Particular Area
Routing guides can help you identify which carriers serve a particular area. American Motor Carrier Directory (800/547-8753) and the National Highway Carriers Directory (847/634-0606) offer guides that cover the nation. If you only need information on one city, consult the Official Motor Freight Guide (800/621-4650).