Less than Truckload (LTL)

LTL shipments are also often referred to as "motor freight" and the carriers involved are referred to as "motor
carriers". LTL shipments range from 100 pounds to about 15,000 pounds, and the majority of times they will be
less than 100" wide or 28’ long. The average single piece of LTL freight is 1,200 pounds and the size of a standard
pallet. Long freight and/or large freight are subject to "extreme length" and "cubic capacity" surcharges. Trailers
used in LTL can range from 28' to 53'. The standard for city deliveries is usually 48'. In tight and residential
environments the 28' trailer is used the most. The shipments are usually palletized, shrink-wrapped and packaged
for a mixed-freight environment. Unlike express or parcel, LTL shippers must provide their own packaging, as LTL
carriers do not provide any packaging supplies or assistance. However, crating or other substantial packaging may
be required for LTL shipments in circumstances that require these criteria.

LTL carriers collect freight from various shippers and consolidate that freight onto enclosed trailers for line haul to
the delivering terminal or to a hub terminal where the freight will be further sorted and consolidated for additional
line hauls. In most cases, drivers start the day by loading up and heading out to make deliveries first, then begin
making pickups once the trailer has been emptied for return to the terminal for sorting and delivery next day; thus,
most pickups are made in the afternoon and most deliveries are performed in the morning.

Pickup/delivery drivers usually have set routes which they travel every day or several times a week, so the driver
has an opportunity to develop a rapport with his customers. Once the driver has filled his trailer or completed his
assigned route, he returns to his terminal for unloading. The trailer is unloaded and the individual shipments are
then weighed and inspected to verify their conformity to the description contained in the accompanying paperwork.
All LTL freight is subject to inspection for this purpose, though not all freight is inspected. Next, the freight is
loaded onto an outbound trailer which will forward the freight to a break-bulk, a connection, or to the delivering
terminal. An LTL shipment may be handled only once while in transit, or it may be handled multiple times before
final delivery is accomplished.

Transit times for LTL freight are longer than for FTL. LTL transit times are not directly related only to the distance
between shipper and consignee. Instead, LTL transit times are dependent upon the makeup of the network of
Terminals and Break bulks that are operated by a given carrier and those carriers’s beyond agents and interline
partners. For example, if a shipment is picked up and delivered by the same freight terminal, or if the freight must
be sorted and routed only once while in transit, the freight will likely be delivered on the next business day after
pickup. If the freight must be sorted and routed more than once, or if more than one line haul is required for
transportation to the delivering terminal, then the transit time will be longer. Also, delivery to beyond points or
remote areas will almost always add days to the transit time.

The main advantage to using an LTL carrier is that a shipment may be transported for a fraction of the cost of hiring
an entire truck and trailer for an exclusive shipment. Also, a number of accessorial services are available from LTL
carriers, which are not typically offered by FTL carriers. These optional services include lift gate service at pickup
or delivery, residential (also known as "non-commercial") service at pickup or delivery, inside delivery, notification
prior to delivery, freeze protection, and others. These services are usually billed at a predetermined flat fee or for a
weight based surcharge calculated as a rate per pound or per hundredweight.

Air-cargo or air- freight shipments are very similar to LTL shipments in terms of size and packaging requirements.
However, air-freight shipments typically need to move at much faster speeds than 500 miles per day. Air-shipments
may be booked directly with the carriers or through brokers or online marketplace services. While shipments move
faster than standard LTL, air-shipments don’t always actually move by air.
Volume Pricing
Volume pricing is available from some carriers for shipments which exceed the size parameters for which they are
willing to offer standard Tariff-based LTL pricing. These parameters vary by carrier, and not all carriers are willing
to offe r volume pricing. Volume rates are typically offered on a spot-quote basis, and take into account the weight
and dimensions of the items being shipped, as well as the amount of unused space the carrier has or expects to have
in the lane where the freight is to travel. Most directly, the carrier is basing their rate on the capacity of trailer to be
used for the transportation of the specific move being quoted. A general rule of thumb might state that volume
pricing is generally applicable for shipments that occupy six or more pallet spots and which weigh 7000 or more
pounds.

Intermodal transportation of LTL freight

Not all LTL shipments travel by truck solely. LTL carriers rely on rail or air to forward some freight toward its
destination. LTL carriers are normally able to deal with railroads more effectively than small shippers are able to as
LTL carriers typically send a large volume of freight each and every day. LTL carriers are able to monitor railroad
performance to ensure delivery of freight within the specified delivery window. An Intermodal freight transport
shipment employs several methods of transporting goods from start to finish. For instance, one shipment will start
out on the railroad, then be transferred to an ocean carrier, and end up on a truck before delivery.

Intermodal shipping is considered advantageous by some shippers because there is no handling of the freight
when it changes from one carrier to the next. Pallets are used to consolidate many things into one easy-to-move
container. Because handling is reduced, it also reduces damage and loss, increases security, and allows the items to
be transported more quickly.

Containers are the largest and fastest growing cargo category at most ports worldwide. Containerized cargo
includes everything from auto parts and machinery components to shoes, toys, and frozen meat and seafood.

Air cargo is commonly known as freight. There are many businesses which collect freight and deliver it to the
customer such as Kitty Hawk Aircargo or UPS. Aircraft were first put to use carrying mail as cargo in 1911, but
eventually manufacturers started designing planes just for freight. There are many commercial planes suitable for
carrying cargo such as the Boeing 747, which was purposely built to be easily converted to a cargo aircraft. Such
very large aircraft also employ quick loading containers known as unit load devices much like containerized cargo
ships.

Rail Transportation
Trains are capable of transporting large numbers of containers which have come off the shipping ports. Trains are
also used for the transportation of steel, wood and coal. Trains are used as they can pull a large amount and
generally have a direct route to the destination. Under the right circumstances, freight transport by rail is more
economic and energy efficient than by road, especially when carried in bulk or over long distances.

The main disadvantage of rail freight is its lack of flexibility. For this reason, rail has lost much of the freight
business to road transport. Rail freight is often subject to transshipment costs since it must be transferred from one
mode to another in the chain; these costs may dominate and practices such as containerization aim at minimizing
these.
Full Truckload (FTL)
Full truckload carriers normally deliver a semi trailer to a shipper who will fill the trailer with freight for one
destination, or several destinations in a rough line (referred to as multi-drop). After the trailer is loaded, the driver
returns to the shipper to collect the required paperwork (i.e. Bill of lading, Invoice, and Customs paperwork) and
departs with the trailer containing freight. In most cases the driver then proceeds directly to the consignee and
delivers the freight. Occasionally, a driver will transfer the trailer to another driver who will drive the freight the
rest of the way.

Full Truckload (FTL) transit times are normally constrained by the driver's availability according to Hours of
Service regulations and distance. It is normally accepted that Full Truckload drivers will transport freight at an
average rate of 47 miles per hour (including traffic jams or queues at intersections). One advantage Full Truckload
carriers have over LTL carriers is that the freight is never handled en route, whereas an LTL shipment will typically
be transported on several different trailers

In the United States of America, shipments larger than about 15,000 pounds are typically classified as “truckload”
(TL), given that it is more efficient and economical for a large shipment to have exclusive use of one larger trailer
rather than share space on a smaller LTL trailer. The total weight of a loaded truck (tractor and trailer, 5-axle rig)
cannot exceed 80,000 pounds in the U.S. In ordinary circumstances, long-haul equipment will weigh about 35,000
pounds; leaving about 45,000 pounds of freight capacity. Similarly a load is limited to the space available in the
trailer; normally 48 or 53 feet long and about 100 inches wide and 106 inches high.

While express, parcel, and LTL shipments are always intermingled with other shipments on a single piece of
equipment and are typically reloaded across multiple pieces of equipment during their transport, TL shipments
usually travel as the only shipment on a trailer and TL shipments usually deliver on exactly the same trailer as they
are picked up on.

Another cost-saving method is facilitating pickups or deliveries at the carrier’s terminals. By doing this, shippers
avoid any accessorial fees that might normally be charged for lift gate, residential pickup/delivery, inside
pickup/delivery or notifications/appointments. Carriers or intermediaries can provide shippers with the address and
phone number for the closest shipping terminal to the origin and/or destination.

Truckload (TL) carriers usually charge a rate per mile. The rate varies depending on the distance, geographic
location of the delivery, items being shipped, equipment type required, and service times required. TL shipments
usually receive a variety of surcharges very similar to those described for LTL ship ments above. In the TL
market, there are thousands more small carriers than in the LTL market; so the use of transportation
intermediaries or “brokers” is extremely common.

Often, an LTL shipper may realize savings by utilizing a freight broker, logistics provider, or other third
party instead of contracting directly with a trucking company. Brokers can shop the marketplace and
generally obtain lower rates than smaller shippers can directly. In the Less-than-Truckload (LTL)
marketplace, third party providers such as Solistics, typically receive 70% to 80% discounts from published
rates, where a small shipper may only be offered a 45% to 65% discount by the carrier.
Freight Classes
Freight Class is the category of your freight defined by the National Motor Freight Traffic Association.
(NMFTA) also referred to as NMFC: National Motor Freight Classification.
The NMFTA classes products according to four characteristics:
1) Weight
2) Storability
3) Handling
4) Liability
There are 18 freight classes ranging from class 50 (the least expensive) to class 500 (most expensive)
The NMFTA also assigns item numbers to every product along with rules and packing requirements.
Each item number (NMFC number) has a freight class. All Item numbers and freight classes are catalogued in
the NMFC tariff for carriers.
You must select the correct freight class or the carrier will re-class your shipment, which results in a higher
shipping charge.
The freight class submitted is most likely not to be reclassified if the density falls within the following
guidelines:
Class 70 or below... over 15 pounds per cubic foot
Class 85.................. 12 to 15 pounds per cubic foot
Class 100................ 8 to 10 pounds per cubic foot
Class 125................ 6 to 8 pounds per cubic foot
Class 150................ 4 to 6 pounds per cubic foot
Class 250-500........ Under 4 pounds per cubic foot
I.E. If a shipment is submitted as class 70 and is 4 pounds per cubic foot, it is very likely to be researched by the
carrier and reclassified...Even if other carriers have shipped it as class 70 in the past.
Some products, such as computers (or data processing machines, systems, or devices) are assigned a freight
classification based more upon their release value. In many cases it may cost less to insure your shipment
through your own insurance carrier if a lower class is available for a lower released value. I.E. the cost to ship
computers with a released value of $5.00 per pound may be a fraction of the cost to ship computers valued at
$10.00 or $20.00 per pound.

How To Determine Density

Density is the weight of a commodity per cubic foot. It is used to determine the classification of some products,
such as plastic articles. Generally, commodities which are denser have lower class ratings. The lower the class,
the lower the charge per hundredweight.
In determining the density of a shipment, you multiply the length, width and height of your shipment in inches,
and then divide the sum by 1,728 to contain the cubic feet of the shipment. Dividing the weight by the number of
cubic feet produces the shipment's pounds per cubic foot.
Shipping Terms
Accessorial charges (also called assessorial charges) are charges made for performing freight services beyond
normal pickup and delivery such as inside delivery, waiting time, fuel surcharges and storage charges etc….

Backhaul is the return movement of a truck from its original destination to its original point of origin, especially
when carrying goods back over all or part of the same route.

BOL (Bill Of Lading) is a document for a common carrier shipment. Gives description of the freight, its weight,
amount of charges, taxes, and whether charges are prepaid, collect, or third party

Cargo Insurance is insurance on the freight which is paid for by the carrier.

Consignee is the receiver; the company receiving the freight.

Consolidation is combining two or more shipments in order to realize lower transportation rates. Outbound
consolidation to customers is called break-bulk consolidation.

Cross-docking operations in a warehouse involve moving goods between different trucks to consolidate loads
without intermediate storage.

Cube is the interior volume of a truck trailer, measured in cubic feet; also called Cubic Capacity.

Detention Time is charge the carrier assesses when a shipper or receiver holds a truck or trailer beyond the free
time the carrier allows for loading or unloading.

FCL (Full Container Load) is a term used in shipping when goods occupy a whole container.

FTL (Full Truck Load) shipments larger than about 15,000 pounds are typically classified as “truckload”

Fuel Surcharge is an adjustment based on an average of U.S. on-highway average prices for a gallon of diesel fuel.

JIT (Just In Time) refers to a system which depends on frequent, small deliveries of supplies to keep inventory to a
minimum.

LCL (Less than Container Load) is a term used when goods do not completely occupy an entire container.

LTL (Less Than a Truckload) shipments range from 100 pounds to about 15,000 pounds and occupy generally up
to 12 linear feet (6 pallet spots) of a trailer. Beyond that is usually considered a volume shipment, or FTL

Pallet Size , although they come in various sizes, the standard size is 48 inches X 48 inches.

Proof of Delivery (P.O.D.) is information supplied by the carrier containing the name of the person who signed for
the shipment, the time and date of delivery, and other shipment delivery related information.

Shipper is the party which tenders goods for transportation.

Volume Pricing is generally applicable for shipments that occupy six or more pallet spots and which weigh 7000
or more pounds.
 IRVINE, CA – MEMPHIS, TN – PORTLAND, OR - Seattle, WA
800.843.6089 - Phone 949.553.1057 - Fax

“With our market knowledge, experience, and outstanding carrier

relationships; Solistics has the ability to customize operations tailored to
your company's unique requirements”

Some of the services Solistics provides:

• North American Coverage: Coverage extends to all 50 states, Canada, Mexico, and Puerto
Rico
• Less-Than-Truckload (LTL): Currently have tariffs with most major LTL carriers
including: USF, Roadway, UPS Freight, FedEx Freight, FedEx National, R+L Carriers,
Con-Way, Old Dominion, Bullet Freight, Midwest Motor Express, Roadrunner,
Dayton Freight, Daylight, DHE, Dot-Line, SEFL, Vitran Express, PJAX, AAA Cooper,
Mach 1, Stevens Air, Forward Air, DHL, and Bax Global
• Solistics Online: Provide a secure online service that enables our customers to obtain rate
quotes, input shipments, print BOL’s, track shipments, and maintain a customer address
book
• Small Package Service: Extremely competitive domestic and international rates for small
package and document shipping that are typically reserved only for large corporations
• Truckload-Flatbed-Rail: Fully staffed and highly trained Truckload Department, providing
inexpensive and reliable truckload and intermodal options
• Tradeshow Specialists: Your shipments to tradeshows will arrive on time, everytime,
Guaranteed!
• International Container and LCL: Handling all your international ocean shipments,
whether full or partial containers
• Domestic and International Airfreight: Whether a single carton or multiple pallets, your
time sensitive shipments will be delivered on time

Solistics delivers exceptional customer service,

with dedicated employees, and state-of-the-art technology.
Our team of logistics experts specialize in providing creative solutions
designed to give your company a competitive edge.