The Future of Density Based Pricing in the LTL Market

Moving it Forward: The Future of Density Based Pricing in the LTL Market

In recent years, the dramatically increasing cost of labor, operational costs and capital expenditures have had a significant financial impact on most of the LTL carriers.  In an industry that is renowned for low profit margins, increasing revenue to the bottom line has proven to be challenging for LTL carriers.  In an attempt to offset these financial ramifications, the LTL carriers have implemented some cost savings initiatives:

• Switching long haul shipments from traditional truck-based line-haul operations to intermodal moves.  Yes, most of the major LTL carriers are railing your long haul shipments.  This change has had a negative impact on transit times for several shippers.
• Implementation of GPS technology in monitoring pickup and delivery performance.
• Increasing the Weight and Inspection (W&I) frequency for LTL shipments.
• Implementing new technology to efficiently conduct higher volumes of W&I’s on LTL shipments.

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