Understanding LTL carrier options
When shipping LTL freight, choosing the right type of carrier helps ensure your shipping needs are met effectively and efficiently. Carriers may specialize in specific types of freight, routes or delivery schedules, and some may offer specialized services that others don’t. While the ultimate decision on which LTL carrier to use will come down to service-level details, a lot can be determined by looking at the broad categories carriers fall into.
Learn about 6 types of LTL providers and when to consider each one for your supply chain.
6 types of LTL carriers (and when to use them)
Whether you’re shipping within a small area or at a national level, knowing your LTL carrier options can benefit you. Below is a list of 6 different types:
1. National
National LTL providers operate large networks, covering the entire country and hauling the majority of LTL shipments on the market. They utilize their extensive networks to offer coast-to-coast and border-to-border services. National carriers can provide competitive rates and a wide capacity network.
Considerations
It is wise to have at least one national LTL carrier in your network. This helps you avoid building relationships with many different LTL carriers and can provide benefits like real-time tracking and freight management tools. However, if you don’t have a high shipping volume, it may be difficult to maintain a relationship, and rates may be less flexible.
2. Regional
This type of carrier focuses on a specific geographic region and operates within that region only. Regional carriers have smaller service areas than national ones but sometimes provide personalized service.
Considerations
Because they operate on a smaller scale, regional carriers are hyper-focused on their regions. This can be beneficial if you’re a regional business or only ship within one metro. However, you won’t be able to move freight outside of that region.
3. Sub-regional
Sub-regional providers cover a specific area inside a region. These carriers only ship within this area and generally have quality service due to their small territory.
Considerations
Use this option for very short shipping lanes. Because this type of LTL carrier is niche, excellent service is expected. On the contrary, using sub-regional carriers is only helpful if shipping in that area. Other carriers will be needed if shipping outside these lanes. Because of this, many national carriers use sub-regional carriers to service remote locations and extend their options for customers.
4. Load-to-ride
Load-to-ride carriers specialize in long-haul freight and can move goods across many regions. This means quick transit and reduced handling, as load-to-ride providers make fewer stops. This type of LTL carrier does not run on a traditional hub-and-spoke model but rather acts more like a multi-stop truckload shipment.
Considerations
Limited capacity is the biggest drawback. Nevertheless, since load-to-ride carriers have limited timelines, you may benefit from this option if you have some schedule flexibility and need to ship long distances.
5. Refrigerated
Reefer providers specialize in hauling goods using temperature-controlled equipment. This option is often used for fresh produce, frozen foods, pharmaceuticals and other perishable goods. If you need your loads to remain at a stable temperature, then this is the option for you.
Considerations
With this selection, your loads will be kept at a constant and exact temperature. Because of the nature of LTL (sharing equipment with other loads), refrigerated LTL can be difficult to find capacity for because other loads would need to be stored at the same temperature. In many cases, refrigerated truckload is a better solution.
6. Brokerage
Some 3PLs and other freight brokerages offer an LTL brokerage or asset-light option. These brokers do not own equipment but use their industry knowledge and connections with all types of LTL carriers to provide a wide range of LTL services to their customers.
Considerations
Asset-light LTL can help cover lanes in any region or area of the country. Using a broker to cover your LTL freight moves can also benefit you if you want to take advantage of freight management tools or route optimization.
ArcBest provides you with options
With asset-light and asset-based options available, let ArcBest handle all your LTL needs. ArcBest is uniquely positioned as a broker with assets. This means that we can provide you with LTL service through our award-winning LTL carrier, ABF Freight, and can also connect you with capacity across the country through our nationwide LTL carrier network.
Contact ArcBest today and see the benefits of both options when shipping LTL freight.
New to LTL? Read about navigating the world of LTL shipping.
