Global and domestic supply chains continue to face rising costs, labour shortages, and increasing customer expectations.
To stay competitive, shippers must find efficient and reliable freight solutions. Less-than-truckload (LTL) shipping offers a way to lower costs, streamline logistics, and enhance flexibility.
As global and domestic supply chains face unprecedented disruption—from rising transportation costs to labour shortages and increasing customer expectations—shippers are under pressure to find cost-effective and reliable freight solutions.
Less-than-truckload (LTL) shipping presents a powerful opportunity to streamline logistics, reduce costs, and improve flexibility. However, unlocking these benefits requires a strategic approach.
This white paper explores the key challenges in LTL shipping today and outlines actionable strategies for optimizing your LTL freight network.
1. The Current State of LTL Shipping
The transportation landscape continues to evolve every day. Here’s a look at the most significant market trends influencing shippers and carriers today.
- Increased Demand for Flexibility: Driven by e-commerce and Just-In-Time supply chains, LTL shipping is more relevant than ever as businesses require more frequent, smaller shipments.
- Rising Costs: Geopolitics, fuel markets, inflation, and accessorial charges can affect shipping costs and cause shippers to think twice about releasing that container half full. This has shippers looking for more variable-cost models to scale with production, like an LTL per-pallet or per-hundred-weight model.
- The One-Stop-Shop: Shippers increasingly want to consolidate services with carriers who offer flexible solutions. Those combining road and rail, asset-based and logistics services, temperature-controlled and dry freight, plus value-adds like storage, pick & pack, cross-dock, or reverse logistics, are best positioned to meet these evolving needs.
2. Common Challenges for Shippers
Unique challenges in LTL transportation—like hidden costs—underscore the need for more robust, efficient solutions.
- Accessorial Charges: Fees for power tailgate services, firm appointment times, inside or driver-assisted delivery will influence the LTL rate that shippers can get in the market – this is a key consideration when looking at an LTL provider.
- Weight & Inspect, and Freight Reclassifications: Accurate freight weights, counts, and dimensions are key to any LTL business; however, customers may not always be prepared with all the correct details when requesting a quote.
- Establishing clarity on shipment sizes, density, and dimensions is key to mitigating any rate variance between the quote and the invoice.
- In the US market, this is particularly important as they use the NMFC class-based freight rating system, which uses pallet density as a key factor in determining the freight rate.
Shippers’ Top Pain Points
Damages and Claims
- Freight often passes through multiple terminals in an LTL model, increasing risk of damage—especially if not packaged or palletized properly. Palletizing freight significantly reduces the need for handling and will improve the overall claims rate.
- Shippers should standardize their pallet builds to industry standard dimensions, ensuring that there is no overhang of products beyond the edge of the pallet. For oversized shipments, such as furniture, communication should occur upfront to mitigate risk.
Lack of Visibility
- Many shippers still rely on manual scheduling and limited tracking, or check calls by phone or email, leading to poor customer communication and uncertainty. The industry is experiencing a push to more web-based booking platforms, and away from traditional phone or email bookings.
3. Strategies for Optimization
- Combine partial shipments where possible to reduce per-shipment costs.
- Using consolidated volume solutions and dynamic pool distribution models to simplify linehaul.
- Training staff on dimensions, density, NMFC classification, or standard LTL shipping styles will improve consistency and predictability in your freight rates.
- Invest in proper packaging and load securement to minimize claims by leveraging pallets, edge guards, dunnage, and shrink wrap when possible.
- Use performance-based metrics (on-time %, damage rates, claims resolution) to vet LTL carriers.
- Negotiate rate agreements that address common accessorials and ensure service level consistency.
4. Technology's Role in LTL Efficiency
Transportation Management Systems (TMS)
- System for booking, planning, costing, and billing orders.
- Integrate with ERPs or materials management programs for additional transparency.
Electronic Data Interchange (EDI)
- Electronic freight booking, GPS, or status updates.
- Book an order with a carrier without submitting a BOL over the phone or email.
API Integrations
- Connect directly with carriers for accurate ETAs and tracking updates.
- Enable dynamic routing and exception management.
Predictive Analytics
- Use historical data to forecast LTL demand, improve load planning, and negotiate smarter contracts.
5. Bison Case Study: Transforming LTL Efficiency
The Problem
A mid-size consumer goods distributor faced rising freight costs, alongside a 20% claim rate due to damaged shipments.
These challenges highlighted the need for more cost-effective and reliable transportation solutions to protect their products and improve overall shipping performance.
Our Bison LTL team developed a tailored solution that not only addressed the immediate concerns but also streamlined operations, reduced costs, and strengthened the customer’s overall supply chain performance.
The Solution
- Implemented TMS with automated carrier selection and tendering
- Standardized packaging and trained warehouse staff on LTL freight classification
- Consolidated weekly shipments into higher-volume batches, loading more freight per asset
The Results
- 14% cost reduction in LTL spend over 6 months
- 75% reduction in freight claims
- Improved on-time performance by 18%
Conclusion & Recommendations
LTL shipping can offer significant advantages—but only when approached strategically.
By investing in technology, improving freight prep, and partnering with the right carriers, shippers can transform LTL from a cost center, into a competitive edge.
Next Steps:
- Audit your current LTL processes and cost drivers
- Explore TMS platforms with LTL capabilities
- Re-evaluate carrier contracts with data-driven performance metrics
- Consider a logistics partner to manage and optimize LTL execution
Terminals across Canada, USA and Mexico
Why Bison Transport?
Bison Transport is a privately held, professionally managed transportation company, established in 1969. With a network throughout Canada, the U.S. and Mexico, Bison is a leading asset-based freight solutions provider that employs over 4,000 professional Drivers and staff.
We proudly deliver award-winning transportation services to our valued clients throughout North America. We operate one of the largest, safest, and most modern fleets on the road today. Our investments in tractor, trailer and container-Bison equipment are a testament to the commitment we’ve made to our customers, staff, and the industry.