Understanding LTL Shipping, Costs and Hazmat Surcharges

At Bulk55 we focus on larger commercial customer orders, however consumers also may  take advantage of our commercial pricing and delivery.  Larger shipments often demand more flexible options and versatile delivery scheduling that traditional parcel  (UPS/FedEx/DHL) does not offer.  

With this post we want to take some time to explain the shipping process of large and heavy goods, larger quantities, hazmat surcharges and explain the pricing options. 

What is LTL Shipping?

LTL stands for Less-Than-Truckload which are shipments that are too big for usual ground carriers like USPS, UPS or FedEx but are less than a whole truckload.  For this scenario, multiple businesses share the space in one truck to transport their goods and pay for the service based on the space their shipment takes up, weight of the cargo and distance. 

Steps of LTL Shipping

LTL Shipments usually follow these steps:

1. Pickup: The freight is picked up from us.
2. Consolidation: The carrier transports it to a terminal where they load it in one semi-truck with other shipments that are going the same way.
3. Transportation: The truck is transporting the goods, making stops at various places along the way to drop of their freight at each destination.
4. Delivery: The Shipment reaches the customer to be delivered.

LTL shipping is highly efficient and often utilized by businesses that want to take advantage of truck shipping without paying for a full truckload. It is a great option to reduce costs while still meeting bulk shipping requirements. 

Breakdown of the costs of LTL shipping:

1. Initial pickup: For smaller shipments the biggest cost is the initial fee a carrier charges to drive to us and pick up a shipment. To showcase this, we will use the example of Blue Def 55 Gallon Drums. To send 1 single Drum is usually around $150, but if we add a second drum then that price may increase to just $175. Generally, the more you order, the lower the shipping cost per item is going to be.
2. Weight: After the initial fee one of the biggest factors is naturally the weight of the shipment. The heavier the freight, the higher the cost. 
3. Size and Volume: Almost as important as the weight is the size of the shipment. Freight that is very light but takes up a lot of space, is obviously going to be costly, since the carrier can fit less into the truck. Usually, carriers will take the dimensional weight into account to determine if the shipment will be billed by size or weight. 
4. Distance and Zones: The shipping distance plays a huge role in determining the cost. The farther a shipment needs to travel, the higher the shipping rate is going to be. Carriers usually divide areas into zones and as the truck moves through zones the cost goes up. 
5. Fuel Surcharges: As fuel prices fluctuate, so does this part of the cost equation. 
6. Accessorial Charges: These are additional fees that the carriers charge, depending on what is required. One example of this is a liftgate. When shipping to businesses there is usually a loading bay that allows for goods to be directly unloaded into the building. If a private customer or smaller business receives a pallet shipment then usually there is no bay, so the carrier needs to send a special truck that allows for the gate to be lowered to the ground. Carriers charge an extra fee for this service. 

What are Hazmat surcharges?

When shipping hazardous materials an additional fee is applied, this is called a hazmat surcharge. Hazardous materials (“hazmat”) refers to all items that could pose a danger during transportation and require special handling and treatment. Examples include certain chemicals, flammable substances or batteries. 

Because of the added risk involved in this, carriers have special protocols, safety measures and certifications that drivers need to comply with. This requires additional training, more complicated procedures and equipment which results in higher costs. This is true for LTL carriers as well as the usual ground shipping carriers.