Why Is A Shared Truckload Better For Everyone
On-demand shipping has been a hot topic in the last few years. It solves one problem: it reduces the shipping cost. It falls short of other transport modes in many areas. The freight shipping industry's pinnacle is the shared truckload (STL). This allows multiple shippers to ship in one truck, reducing freight costs. It's time for you to upgrade if you still use window spot or hub and spoke.
Global trade is expanding at an unprecedented pace. There seems to be a concern among trading partners that current logistics service providers are not meeting their freight transportation requirements.
They are often confused between LTL shipping or TL shipping when choosing a transportation mode. There is an alternative that will meet their needs. It's the STL model. We'll explain why it's so good for them. Continue reading.
Sharing Truckload: Simplifying Shipping for Countless Businesses
The most cost-effective, environmentally friendly, and safest way to transport goods is by using shared truckload shipping. One truck can transport multiple types of cargo and deliver it to another destination using shared shipping.
Shared Truckload is a shipping service that combines some of the best features of other shipping services such as (TL), full Truckload, or Less Than Truckload (LTL) and eliminates any significant flaws.
When you first hear about a shared truckload, it is unusual. It did not deal with the hub but spoke of traditional shipping methods.
Let's take a look at the reasons shared truckload is so attractive to shippers large and small and why it makes shipping more efficient. You will be surprised to learn that shared truckload not only benefits shippers and carriers but also has positive effects on the environment.
Let's get the most out of the shared truckload.
The Shared Truckload approach is a way to flip the traditional hub-and-spoke system and still retain the benefits of the TL or LTL, but with the greatest flexibility.
The shared truckload model is more beneficial for shippers, carriers, and the environment. Forwarders can help shippers consolidate freight in multiple runs. Multiple shipments can be loaded in one truck by forwarders to increase capacity utilization. This is not all. Shipping with STL mode is not the only option...
Shared Truckload benefits for Shippers
Many shippers find themselves in an impasse when they have too many loads to ship but not enough " too much-load" to fill a full container. They often have three options and none of them is right for them.
- Extra LTL space requires extra cost.
- You will be charged for the space in the TL
- Wait until the trailer is fully loaded before the carrier can move it
This is where STL can be a savvy tool for shippers. These are some of the many benefits shippers get from an STL.
- First, you can use a TL service and only pay for the space they use
- Avoid the hassle and penalties associated with LTL transactions.
- No more bearing delays
- There is no chance of goods being damaged or lost because the shipments will remain in the truck until they reach their destination.
- Get TL services via STL mode at lower rates
- Control over the pickup and delivery dates
Shared Truckload benefits for Carriers
Because shared trucks have to stop at multiple pickup and delivery points, it seems like they don't offer any benefits to carriers. However, this is not true. The shared truckload mode offers as many benefits to the shipper as it does for the carrier.
Here are some perks for carriers who use the STL model:
- Because their trucks are packed with freight from multiple shippers, carriers get paid more.
- They can also switch to higher-paying loads, leaving behind the drop and pick freight.
- There's no need to haul trailers that are half-full anymore.
- Maximize profitability by filling your truck with loads from multiple shippers.
- Gas efficiency can be achieved by using streamlined routes
- You can save time and skip LTL hubs or terminals.
- Terminals can reduce the profit risk from damaged products
- Boost your income streams by incorporating efficiency into the work that you already do.
Environmental Impact on Shared Truckload
STL mode offers both the shipper as well as the carrier multiple benefits. It is also an environmentally-friendly shipping option that is a winner. STL mode is more environmentally friendly because it uses fewer LTL terminals and reduces waste in the trailers that take up energy.
EPA states that transportation generates 29% of greenhouse gases. However, freight trucks emit more GHG than planes. We conclude that LTL and TL shipping is extremely dangerous for the environment when freight moves. The trucking industry must make the most of its space and fuel resources by choosing the STL. The shared truckload model eliminates traditional hub-and-spoke structures and eliminates the possibility of remanufacturing or reshipping goods.
The only mode of trucking that reduces the carbon footprint is shared truckload.
Shared Truckload Has Alleviated Freight Issues during Pandemic
Shippers have been struggling to provide high-quality services despite increased costs and reduced capacities due to COVID-19. Shippers have had to come up with creative and innovative solutions in order to overcome these challenges.
The pandemic situation has been made worse by the Shared Truckload. Customers could use demand data to share shipping costs with other shippers using the same lanes.
Although shared truckload shipping may seem more expensive than less-than-truckload shipping, it's worth the extra quality since it eliminates terminal network risks. The shared truckload is a cheaper alternative to full truckload shipping, but it comes with more perks.
Here's a sneak peek at how STL beats LTL and TL shipping modes
While you may be aware of the benefits of shared truckloads, you might still wonder what the shortcomings are in other shipping options. Let's take a look at the different shipping options and find out what their weaknesses are. This will help any shipping company optimize its logistics.
LTL is a shipping option that is less than truckload is ideal for small loads. It is used to transport freight directly to the destination via a hub and spoke system.
TLTruckload can be used for shipping more large items. This method uses a hub and spoke system.
To decide which shipping method is best for your shipping needs, it is important to understand the importance of the load size in each shipping option. These are the parameters used by the trucking industry to determine load size.
- Pallet quantity
- Freight class
Let's take a look at the importance of the load size in shipping modes.
Shared truckload: This shipping method is best for freight with dimensions between 8 and 44 feet, weighing up to 36,000 lbs, and including 4 to 22 pallets.
Less than Truckload: An LTL is better for shipments that aren't full-size and weigh less than 4,000 lbs. It also includes 6 pallets.
Full Truckload: Full Truckload is the preferred method for shipping shipments over 15,000 pounds. It takes up all of the truck space and includes more than 10 pallets.
Conclusion: The winner in all shipping modes is shared truckload
Remember the saying "Sharing is caring"
The trucking industry uses the same concept of a shared truckload. STL assists shippers and carriers to move freight according to their terms.
After the Covid crisis, the STL is experiencing rapid growth in the shipping industry around the world.
Shipping companies around the world need to optimize the constantly changing supply chain landscape.
Shared Truckload's innovative shipping method gives it an advantage over other options. This is a great way of saving money on transport. STL encourages sustainability by filling every vehicle to its maximum capacity, reducing empty spaces, and lowering greenhouse gas emissions by up to 40%. STL is a way to promote sustainability.
This type of service is popular because it saves time, money, and reduces stress.
Although the STL may seem complicated, it has many perks that make it an excellent choice among all shipping options. It's a great choice for shippers and carriers as well as for the environment. It's a win-win-win situation!