LTL carriers provide services for shipments that are too large to be sent as parcel but too small to fill an entire truckload, thus making it a complex shipping method. Less-than-Truckload might not be as widely used as Full Truckload, but it remains as one of the intrinsic option in the array of freight services. The LTL freight rate is complicated and driven by many variables, some internal variables like – shipment weight, density, NMFC classification, distance, base rates, FAK, accessorials etc. and some external variables like – route optimization, Fuel charges, labor and evolving government policies like ELD Mandates etc, making it only harder to keep the margins competitive.
In the face of growing competition in marketplace the carriers are turning to the last mile delivery market, which ensures influx of business but the expectations of end-users to receive the shipment in time, without damage and with no extra cost can become quite daunting challenge in itself.