Welcome LTL 101 Training
Transcript of Welcome LTL 101 Training
Welcome
LTL 101 Training
The purpose of this course is to certify USA Transportation Logistics
LLC agents and staff members in the LTL product.
We hope you find this course informational, however if you would like
any additional information on any of the topics reviewed, please reach
out to USA Transportation Logistics LLC - LTL Department.
Understanding LTL
Classifying LTL
Quoting LTL
Volume LTL (Partial TL)
Managing LTL
USA Transportation Logistics LLC LTL Program
Certificate of Completion
Understanding LTL
In this first section “Understanding LTL” we will cover the
basics of Less Than Truckload freight. More specifically, how it
differs from traditional Truckload in both operations and
pricing.
The LTL trucking industry is made up of
specialized carriers that operate a
consolidation network of local city
drivers, long-haul drivers, freight
terminals, and Distribution Centers.
LTL Carriers
LTL City Operations
At a local level, city drivers service specific routes, picking up and
dropping off freight at different customer locations. Those
shipments are then brought back to a city terminal and consolidated
for long haul.
LTL Line Haul Operations
Once freight has arrived back at local terminals, freight is cross-docked
to Line haul trailers and sent to regional or National hubs, often called
Break-bulk or Distribution Centers. This process is very similar to the
hub and spoke system used by airlines
Consolidated Freight Due to this consolidated freight
approach, it is vital to understand how
freight will load with other freight.
Contrary to Truckload where you are
afforded the space of the entire truck,
LTL freight is essentially based on the
weight and space a specific shipment is
utilizing.As you can see, shipping a
1000 pounds of baseballs is
certainly not the same as a
1000 pounds of basketballs.
Due to the complexity of all
the different types of items that
need to be transported via LTL
service, a pricing (or
classification) method is
required to create a common
platform to rate LTL
Shipments.
The classification system most widely used in LTL is the
NMFC guide which is compiled and maintained by the
National Motor Freight Traffic Association, a third party
organization. The NMFC guide assigns a dedicated to
class to most anything that can be sent via common
carrier.
Freight classes range from 50 to 500. The lower the
freight class, the lower the freight rate will be.
Freight Class
The NMFC guide considers four main components when determining freight class:
Density (The combined weight and space utilized)
Stowability (How well a shipment will consolidate with other freight)
Handling (How easy and quickly can the freight be moved)
And Liability (How susceptible a shipment is to damage and the
value of replacing that shipment should it be damaged)
Fed-Ex Calculator (Easy) https://smallbusiness.fedex.com/freight-
classification.html
Our example from the previous slide highlights the need for different
rating classification for different commodities. The smaller, heavier
baseballs are class 85. The lighter, larger basketballs are class 200. We
will discuss how rate affects price in the next module.
Freight Class
In this section, we will take a closer look at identifying correct LTL
classification.
Classifying LTL
Jacksonville, FL to Norfolk, VA
720 lb. shipment
How Class Affects Cost
In the previous section we reviewed the basics of freight classification.
Now we will review how class directly affects the cost of a shipment
All factors equal in lane and weight, we can see how a shipment’s price
changes drastically through each class. So it is very important to
correctly classify each shipment to secure an accurate LTL rate.
Your Customer/Shipper should know the class and the weight. If you
need to find it on your own, you can use Fed-Ex LTL Freight
Locating Commodities in NMFC
When reviewing the NMFC guide, you may find that some commodities
have their own specific item number. In this example, wooden pencils in
boxes have a designated NMFC item #. Just be sure to read the entire
description to confirm the item describes the commodity as shipped.
Commodities with Pre-Determined Class
Item 179050
Lead Pencils wooden, other
than mechanical or ball point,
in boxes.
Other NFMC classifications
are
dependent upon how the
commodity is tendered for
shipping. The difference
between Set up and knocked
down applies to products that
could be assembled.
Class Based on Packaging
As an example, this chair is fully assembled or Set Up and Strapped in a
Pallet.
If the chair was unassembled and shipped in a condensed form it would be
considered “Knocked Down.”
Crated implies the shipment is completely protected by heavy
crating and cannot be easily damaged in transit.
Shipping items “loose” implies individual pieces with no central
handling piece such as these individual cases.
The term “Nested” refers to products that can be stacked inside each other,
such as these buckets.
In this slide we have an example NMFC item with multiple sub
classes depending on how the freight is tendered and packaged.
First, we identify racks under this item number can be wire or made of
steel, wire combined, or wooden.
Wire racks cannot be knocked down or made smaller, so all sub classes
are based on the racks as Set UP or fully assembled.
However there are different classes based on # of units and Nested
(stacked inside one another) or in some way interlaced
Racks made of metal, or heavier materials are likely to weight more
than wire racks and may be disassembled when shipped. Therefore
these products are broken down into Set up Or Knocked down
categories.
Determining class on Packaging
LTL Classification can also be dependent upon a commodity’s value.
Release value classifications usually apply on high value items such as
electronics.
Class on Release Value
However other items such as costume jewelry can also be subject to
release value rules. In this example, jewelry with a value not exceeding
a dollar per pound is class 100. Therefore it is important to ask your
customer what is the wholesale value of the product.
Always indicate the released value of the product clearly on the bill of
lading when the commodity is dependent upon this factor for
classification.
A shipment’s combined weight and space is typically the most frequent
determining factor in the NMFC guide. Density-based commodities
require the shipper to obtain the density or Pounds Per Cubic Foot of a
shipment to identify the correct class.
The basic calculation of density is the weight divided by the space or
cube of a given object.
To calculate the density of a shipment, first determine the weight. Next,
capture dimensions and multiple the total shipping dimensions to figure
the cube. If dimensions are given in inches, divide by the number 1728 to
obtain the cubic feet. Lastly, divide the total weight by the Cubic feet.
This will give you the Pounds per cubic foot needed to identify shipping
class.
How to Calculate Density
When reviewing the NMFC description, you will indicate the class for which
your density falls in line. In this example of plastic water bottles, if the shipment
PCF was 4.5 then the freight class would be Sub 04, class 150.
Density commodities are very common in
products made from the same type of
material but vastly different shapes and
weight.
Density Commodities
Since density may be a critical factor in classification, always ensure the
accurate shipping dimensions are captured. If the freight is hanging out over
the pallet, those additional inches will need to be captured in the total. If the
item is smaller than the pallet, then the additional inches for the pallet space
must be included. As you can see in this example, even a small variance in
measurement could change the freight class.
Correct Shipping Dimension
Researching Freight Class
Finding a Freight Class:
• Reach out to Shipper
• Use Fed-Ex Calculator
• Call LTL Carrier
Helpful questions to ask your customer:
What type of commodity is being shipped?
What is it made of?
What industry is it used for?
How is the freight packaged?
Is the item fully assembled?
Are the items nested inside each other?
Is this item high value or have a specific release value.
What are the shipping dimensions and weight?
In this section will cover the additional factors that contribute to an accurate LTL
rate in the LTL Module of our Dispatch Software.
Quoting LTL
An LTL quote is comprised of four main standards. The shipping lane,
freight class, weight and accessorials. It is important to remember that a
quote is only as "good" as the information provided. If anything changes
with commodity or required services, the rate will also change.
Accurate Quoting
Similar to Truckload, carriers will
expect to be compensated for any
additional time or services
performed. Anything other than a
“Dock To Dock” shipment may
have an associated accessorial
applied.
Understanding LTL
If a customer does not have a loading dock or an available
forklift, it should be identified how the freight will be loaded or
offloaded. The freight may be light enough to offload by hand or
the customer may need a truck with lift gate or possibly inside
delivery.
Specific commodities that require additional handling or precautions may also
have an applicable accessorial. Hazmat fees compensate the risk in handling
the commodity and co-loading with other products.
Objects that are extreme in length may result in an over length fee due to their
awkward handling characteristics and inability to mingle with standard
palletized freight.
Requesting an appointment on a shipment will also result in an appointment
fee. Appointment freight requires the carrier to hold freight on the dock which
can increase susceptibility to damage and interrupt normal delivery operations.
Commodity Accessorials
Accessorials specific to origin and destination locations may also be
required. If a facility has a gate and/or the driver has to check in with
location personnel, then a Limited Access Fee of some type is usually
applied. Some additional locations may include:
Location Accessorials
Whether your customer needs one or more of these services, just be sure
to ask your customer what the expectations are for successful pick-up
and delivery before the shipment is dispatched.
Shipment Requirements
Volume LTL (Partial TL)
In this section we will review handling LTL shipments that encroach on
full truckload or partial shipments.
When dispatching a large LTL shipment, it is
important to pay attention to the amount of
space you will be utilizing in the trailer.
Typically anything over 12’ will receive punitive
pricing, commonly referred to as “Cubic
Capacity” or “linear Foot” rules. Standard LTL
quotes no longer apply when a shipment absorbs
a large amount of space.
The USA Transportation Logistics LLC LTL system has safeguards or
quote restraints that will attempt to prevent shipments from receiving
potentially incorrect LTL rates by blocking shipments that:
Contain more than 5 Pallets
Weigh more than 5000 lbs. total
Or the dimensions exceed 500 cubic feet
Manual review may still be required for shipment pieces that cannot be
double staked or cannot fit side by side
Large “LTL” Shipments
If you will be utilizing more than 12’ of trailer space that is usually a good
indicator that you will need to secure a spot volume quote from the carrier.
Volume quotes could be considered as the “wholesale price” on a
section of the trailer and safeguards against trailer capacity rules that
could raise your LTL rate significantly.
Volume quotes are based on
the carrier’s current market
needs. This is similar to a
partial truckload in that
capacity needs may fluctuate
and quotes will have an
expiration date.
Although Volume quotes will typically lower your customer’s rate. It is
important to remember, the liability amounts may be lower due to the
wholesale price you are receiving. Often $1.00 per pound regardless of
commodity Also, the transit time may be slower than the carrier’s normal
advertised transit time.
Obtaining Volume Quotes
When contacting a carrier directly for any
type of quote it is always important to
remember to ask for a copy of the quote.
Before dispatching, verify any expiration
dates and confirm the information captured
is correct as you originally provided.
Also it is extremely important that the quote number is on the original BOL
that the driver picks up from the shipper. Some carriers may not honor a
quote after they pick up if it was not included on the original bill of lading.
Documenting Volume Quotes
Successfully managing LTL service
as a 3PL partner extends beyond
pricing. In this section we will
review the additional support
needed to manage LTL freight.Understanding and managing
transit times is a significant
component of successful LTL
operations. It is always prudent
to ask the customer if the freight
needs to arrive by a certain day
or time. t is also important to
know that transit time does not
include the day of pick up,
weekends or holidays.In this example, the Carrier’s
Advertised Transit is 4 days. The
shipment is picked up Wednesday,
September 4th. So the projected
Delivery Date is actually next Tuesday,
September 10th, six calendar days after
pick up.
Managing Transit Times
As referenced on the previous page, LTL carriers provide advertised transit
times on all their shipping lanes. When running a quote, you will be able to
view the transit at that time. If your customer must ensure the shipment arrives
by that advertised transit day, then you will need to book a guaranteed quote.
Standard options like delivery by 5pm
and noon on advertised transit are fairly
routine are available at the time of quote.
Guarantee Transit, Standard Quotes
When booking these quotes, the proper
guarantee quote number and indicators
will print on the BOL created in the
TMS system. In order to honor your
time definite request, it is extremely
important that the shipper use this bill of
lading.
If your customer requires a shorter transit time than advertised, early
morning, or weekend delivery, you should call the carrier to ensure the
service can be performed.
Outside factors such as distance from originating terminal, current road
or weather conditions, and capacity restraints may affect a carrier’s
ability to satisfy certain time definite requests.
Guarantee Transit, Spot Quotes
On occasion an LTL carrier may need to book the
shipment outside their own network using a hotshot
driver, team driver, or even expedited air. Be sure to
request dispatch instructions when activating a time
definite quote that was quoted directly with the
carrier. And as with standard guarantee quotes,
ensure the quote number and indicators are on the
BOL used by the shipper.
Before dispatching an LTL shipment, customers may also inquire on the
carrier’s liability coverage should something happen to their freight.
It is important to know that liability is not the same as insurance.
Liability is the amount a carrier will pay if they determine freight was
damaged while in their care and they are at fault.
Freight Liability Coverage
Liability amounts may vary from Carrier
to Carrier, but are typically based on
class. The lower the freight class, the
lower the liability amounts will be.
If your customer requires additional
Liability coverage, you will need to
quote directly with the carrier. However
be advised, there may be a maximum
allowable amount.
Let’s walk through a quick example:
Shipping a piece of machinery, your customer
would like liability coverage of $1400
Based on the NMFC, you determine the
freight class is class 70
Per the carrier’s liability chart, class 70 is
covered at $5.92 per pound
Multiplying the liability limit times the
weight of the shipment will identify the
total amount available if the carrier
damages the shipment
In this example you would need to contact
the carrier to request a quote with
additional liability coverage of $541.60.
Creating an accurate Bill of
Lading is also essential to
effective LTL Management.
The Bill of Lading given to the
driver is the official document of
the shipment and supports any
quote, special services, or
requirements for the load.
The USA Transportation Logistics
LLC BOL generated from the
system should be provided on all
LTL shipments as it shows USA
Transportation Logistics LLC as
the paying party.
Creating Accurate BOLs
The most accurate bill of Lading
will have the following
information captured:
Once the shipment has been dispatched and delivered, the shipment can
be billed. However, on occasion it may be necessary to dispute a freight
bill on behalf of your customer. Some potential reasons to file a billing
dispute may be:
The invoice was not billed or sent to USA Transportation
Logistics LLC
Additional service charges or accessorials billed
Or The weight and/or the Class was changed
Initiating Carrier Disputes
If the invoice was not billed to USA Transportation Logistics
LLC:
Verify with the carrier if the USA Transportation Logistics LLC BOL
was used by the customer?
If not, provide the carrier with a “Corrected” BOL showing USA
Transportation Logistics LLC as the paying party.
If additional charges or services were
unexpectedly billed, verify if:
The service was warranted,
requested, or required?
If not, provide information
supporting why the service was not
required, including pictures if
applicable
•
If the weight and/or Class was corrected:
Verify if the customer provided the correct
freight info at time of quoting?
It is important to understand almost all carriers
have forklifts with on-board weight scales and
inspectors that insure these weights and
classifications are correct.
If your customer is adamant the information is not
correct, request a copy of the original sales
Purchase Order, Pictures of freight, or other
supporting documentation
Reclassifications or reweighs can sometimes be validated before reaching out
to your customer by simply reviewing the bill of lading imaged by the carrier.
This is the official document of the shipment as it was signed by the driver
and has the carrier PRO sticker attached.
In this example we see that the shipper scratched out the original
weight and piece count, altering the amount that actually shipped.
Next review the Weight and Inspection form imaged on the carrier’s
website. The Weight and Inspection analyst will provide notes regarding
the commodity received with details on the piece count, weight,
dimensions, and full item description.
Review Supporting Documentation
Lastly, managing LTL freight may occasionally involve facilitating a
freight claim. In the event a shipment is damaged, lost in transit, or
delivered short LTL claims are filed directly with the LTL carriers.
The first step is to always notify the carrier as soon as damage or loss is
identified.
Also, it is imperative that customers know to document any damage (no
matter how small or insignificant on the delivery receipt.
The agent will then facilitate the claim process by submitting directly to
the carrier on the customer’s behalf.
The “Owner of the goods” should be listed as the claimant on any claim
form submitted to the carrier. This value of the freight is inclusive of
wholesale replacement values, not retail or anticipated sales price.
Costs to repair and item or ship a replacement can also be included in
total claim and lastly original shipping charges can be included but
must be paid first.
Filing Freight Claims
Now that we have covered some of the basics of LTL, we will review the
USA Transportation Logistics LLC - LTL program and the support that is
available to USA Transportation Logistics LLC agents.
USA Transportation LTL Program
The USA Transportation
Logistics LLC - LTL program is
managed by the LTL
Department Bill Hammond is
the LTL & Intermodal Manager.
Bill serves as the main contact
point for agent support, manage
pricing negotiations and
maintain the carrier
relationships.
The LTL system utilized in the USA Transportation Logistics LLC LTL
module is an online web-based program within our TMS (RTF).
This central location serves as the connection point with the carriers and
our internal USA Transportation Logistics LLC systems. Within the
module you can:
USA Transportation Logistics LLC - LTL System
The LTL rates loaded in the system are
negotiated rates with our approved
carriers that are available to any agent
or customer. The rates are based on the
actual freight class and you may find
some accessorial concessions.
The customers can use any carrier available
and are responsible for classifying and accurately
quoting their own freight. The shipments are
immediately available for them to view and manage.
This is a great option for any agent wanting to reduce
administrative time and increase shipment volumes.
LTL Rates
System Access for Customers
The USA Transportation Logistics LLC - LTL
program is also available for direct customer
access. Customer can quote, book, and trace
their own loads without agent involvement.
The general flow of an LTL shipment begins with:
1. The shipment created and tendered in RTF dispatch software LTL System either by the agent or the customer
2. Next, the carrier electronically provides: Pick up Confirmation, EDI Status updates as the shipment is moving and the signed shipping Documents, and Invoice after delivery
3. Once the documents are visible in the USA Transportation Logistics LLC imaging system, the Agent finalizes the freight bill in the USA Transportation Logistics LLC billing system.
4. And lastly, USA Transportation Logistics LLC corporate pays the carrier, sends an invoice to your customer, and releases agent commission at the same time.
LTL Process
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Congratulations, you have completed the LTL Course!
Email Training for your Certificate of Completion