LTL PALLET DIRECT
"The LTL Alternative"
How LTL Loads Traditionally Work
Traditional LTL shipping aims to make transportation more economical for orders that are too large to be sent by small package (USPS), but not big enough to fill a full truck. The average pallet order at a shipper is around 12 pallets.
LTL carriers generally utilize van trailers to combine multiple shipments from different companies into one vehicle. They pick up multiple orders from a set geographical area, sharing truck space, then go to a central terminal. There they unload at an inbound dock, then move to an outbound dock where they are reloaded with consolidated shipments which they take out for delivery. The delivery, even local is usually next day even if the shipper and consignee are 5 miles apart.
This happens regardless of whether an order is being delivered locally or nationally. As a result, LTL orders are traditionally handled often. This is one of the main downfalls of the mode. Each time a product is moved it runs the risk of breaking or being damaged.
For snack and ingredient producers, over handling is a big concern. Any puncture to packaging could mean contaminated, ruined, and unsellable goods.
Additionally, shipping LTL can make meeting retailer compliance standards very difficult. LTL deliveries are typically only made at the delivery terminal when the product arrives on site – no prescheduled appointments. All too often, by the time the terminal sets an appointment, the receiver is booked beyond the compliance date and the shipper gets a negative mark on their scorecard.
Benefits of LTL shipping, include:
Generally, less expensive than full truckload
Concerns with LTL shipping, include:
Difficulty with hitting retailer standards
Slow Transit Times
LTL shipping works best for:
Orders that are too large for USPS or parcel shipping
Orders that are too small to fill a full truckload
Longer timelines due to hub-and-spoke model
How "LTL Pallet Direct" Program Works
The Box Truck Network's LTL Pallet Direct Program works where we receive orders on an LTL Platform that we created and are sent to our available drivers through an APP that we are launching. The shipment is loaded onto one of our member's trucks and then is usually delivered at the destination on the same. Because there is no "Terminal" for the driver to pick up at, our members start from their home base and pick up and drop off multiple shipments that the member has routed specifically for their daily LTL run.
When a driver executes a “LTL Pallet Direct Program” shipment, they handle (or touch) freight far less often than traditional LTL because the pallet does not leave their truck (except if they have a small transloading dock available). They execute on scheduled pickups from orders that come to their APP. They receive preorders or on-demand requests for loads to be picked up. Again, our members move directly to deliveries, removing the middle step of unloading, consolidating, and reloading at a terminal, saving our customers time and money. Picking up directly at location and delivering to their customer right away, shippers can reduce loss and damage, expedite shipments, and improve efficiencies.
Benefits of LTL Pallet Direct, include:
Less handling, reducing risk of cargo damage
Generally, faster transit since there is no central terminal
Generally, lower prices than LTL or FTL
Up to date technology that will give customers up to date information
LTL Pallet Direct works best for:
Freight that has a shorter distance to travel
Freight with origin and destination locations that are near major lanes and desirable routes
Who Should be Part of Box Truck LTL Pallet Program? YOU SHOULD!!!
Here is how it works:
As a member carrier in our network, you are contracted to take pallets at a specific pricing. Each individual shipper agrees to pays an accepted Minimum for each stop. Our initial stop minimum is $70 for the first pallet. The charge for each additional pallet starts at $35.00 per pallet and the LTL volume rate starts at a base rate and per mile charge. Volume LTL rates mean that you can make more money because of the rate per mile inclusion. The average pallet a LTL shipper moves is 1.5 pallets. There are volume discounts or breaks as they call it. You are not obligated to take any freight. The idea behind this is as follows:
This is an Example of how your income looks like:
Shipper # 1 - 1 Pallet $70.00
Shipper # 2 - 2 Pallets $105.00
Shipper # 3 - 1 Pallet $70.00
Shipper # 4 - 3 Pallets $140.00
Shipper # 5 - 5 Pallets $275.00 + $65 Mileage Charge
The gross revenue of these 5 stops is $725 There is only 12 pallets total that were picked up. Our estimate is that you should be able to do 18-24 pallets a day. This was only 5 Pickups. We are working with conservative numbers and this is just an EXAMPLE!
NOTE: THESE SHIPPERS MIGHT BE IN A 15 MILE RADIUS, FOR EXAMPLE.
So if you do the math, you have 12 pallets on your truck and you are at $725.00. On the way to shipper # 4, you drop off shipper # 1's pallet. A new order comes in where you can pick up 2 pallets at shipper # 6 for $105.00. Now you are at $830.00. This is the pattern of how this works. Pick up, drop off, pick up, drop off. The more you stay on top of providing great service to the customers, the more freight you will have the opportunity to move.
80% of you work is forecasted to be within a 25-50 mile radius. Keep in mind, if we get requests for freight, our contracted carriers are the only ones that get it. Ideally, if you picked up 1-2 pallets, you will get paid a flat rate per pallet, at published rates. That means that you will know what you get per pallet and so will the customer! Because this is a new platform, we will be reviewing the tariffs often to make sure we are competitive and profitable. We believe with the right planning, drivers should be able to make $1000+ and be home every night. Thanks for working with us. Who can say no to making $1000+ a day and not leaving your area? (We make no guarantee of any dollar amount, but just offer the opportunity. It is possible for carriers to make good money if their operation is ran correctly. Carrier's with cross-docking availability can make much more!)
According to our large customers, the idea of using our platform excites them and we are in control of the platform, which means the sky is the limit!
THIS IS NOT A LOAD BOARD. THE SHIPPER OR BROKER SENDS ACTUAL SHIPMENTS TO YOU VIA THE APP!
*You will bill the brokers and shippers directly for the service and can get paid quick if you have a factoring company. If you don't have one, we can help you get one that can help you! All our shippers/brokers have excellent credit or they prepay their freight bill.
LTL Carriers make good money! Why Shouldn't You?
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