Truckload Consolidation Explained: Benefits for US Shippers

Truckload consolidation is a logistics practice that combines advantages from full truckload (FTL) and less-than-truckload (LTL) strategies to save shippers time and money. While it shares superficial similarities with LTL shipping, there are important differences to keep in mind when deciding on the best freight shipping technique for a given load.

Key Takeaways

• A consolidated truckload combines multiple LTL shipments destined for the same area or end user.
• Since they don’t go through as much cross docking and unloading/reloading as pure LTL, consolidated shipments are less prone to damage during transit.
• It differs from FTL in that multiple vendors use the same trailer, not just one. 
• Working with a nationwide 3PL will offer you more opportunities to take advantage of this cost and time-saving strategy.

Learn about the details of truckload consolidation and the advantages it offers to shippers. 

Freight Consolidation in Truckload Shipping

In truckload shipping, consolidation refers to the practice of taking small loads from multiple warehouses or vendors and consolidating them within a single trailer for shipment. 

This clearly contrasts with FTL shipping since multiple shippers are involved, but the differences between truckload consolidation and LTL shipping are more nuanced. To make these differences easier to grasp, I’ve compiled the most noteworthy ones in the following table.

Since shipping costs aren’t calculated using the LTL freight class system, they’re easier to determine and the shipment won’t risk reclassification if it’s inspected. 

While LTL is still the method of choice for shippers who don’t regularly send out large freight orders, consolidation can make your supply chain more efficient if you need FTL-level service on a budget.

Related: What is LTL Shipping

How Truckload Consolidation Improves Supply Chain Efficiency

When it comes to reducing costs and running a lean operation that hits the sweet spot of customer satisfaction and profitability, efficiency is the name of the game. Consolidating multiple loads bound for the same destination or area comes with some inherent boosts to the efficiency of your supply chain.

• Lower Fuel Costs: When one trailer is used instead of two or more, that means only one power unit is necessary, which cuts fuel usage substantially. 
• Shorter Delivery Times: When the slow-moving nature of LTL shipping can’t meet your needs, truckload consolidation can shorten your transit times without incurring the total cost of FTL. 
• Less Handling: LTL shipments are often unloaded, repositioned, and reloaded during transit. This is an invitation for damage to occur, and truckload consolidation avoids this issue by limiting deliveries to a smaller geographical area or single destination, minimizing handling.

What’s good for the supply chain is good for the shipper, and using truckload consolidation strategically will benefit your bottom line in significant ways.

Related: Difference Between FTL and LTL

Benefits for Shippers

The most obvious benefit of truckload consolidation is the savings it offers multiple shippers who are willing to share a trailer. For instance, if three shippers within proximity of each other hired their own truck and trailer to move goods to the same destination, each shipper would owe thousands of dollars in freight fees. By consolidating their shipments into one trailer, they each cut their costs by roughly a third.

Time saved in transit compared to traditional LTL shipments is the second major benefit for shippers. When a customer needs their freight in two to three days, truckload consolidation can meet that expectation and keep customer complaints to a minimum. 

One of the easiest ways for shippers to enact this strategy wisely is to do so via their partnerships with third-party logistics (3PL) providers. An experienced 3PL is staffed with individuals who can quickly determine the best shipping method for any freight shipment in the US.

Consolidate Your Freight With USA Truckload Shipping

The logistics experts at USA Truckload Shipping have decades of experience assisting shippers with warehousing, distribution, and all other links in the supply chain. Give us a call at (866) 353-7178 or fill out a request for proposal online today!