Customized Shipping: LTL, LCL, and add-on services.

• Author: Shipe, O'Hara
• Position: TRANSPORTATION - Less than Load - Lessthan container load

When shipping freight or cargo, innovation often Ues within less than truckload (LTL) and less than container load (LCL) providers and the specialty add-on services that make interor intrastate shipping possible. There are several different perspectives as to what the terms LTL and LCL mean. For example, some carriers combine the load of two to six different clients' shipments, and since bundling shipments is LTL/LCL in the broadest sense, they advertise that they offer LTL/LCL services. Other carriers break up larger shipments into smaller loads--typically due to weight restrictions--and call the service LTL/LCL.

LTL in Alaska

In Alaska, the characterization of LTL services is not muddied by technicalities.

According to Alaska Trucking Association Executive Director Aves Thompson, the definition of LTL is unambiguous. LTL refers to freight that weighs more than 150 pounds, which is the maximum limit for large-scale parcel services such as USPS, UPS, and FedEx; however, the freight from one customer cannot fill an entire truckload. Typically, shippers would contact either a carrier or a consolidator to pick up their freight. The freight would then be consolidated with other freight going in the same direction and, as Thompson puts it, "away you go."

With forty years of experience in the transportation industry, Thompson offers a wealth of knowledge. In Thompson's opinion, there are very few downsides to taking advantage of companies that offer LTL services.

"Small stores like an Anchorage hobby shop or maybe a dress shop might need to ship five or ten boxes of product that are over the 150-pound weight limit, so this is an affordable way for them to consolidate on shipping. Larger companies can also take advantage of the service if they have limited special orders from the Lower 48," he says.

He goes on to say that the shipping price per pound might seem high using an LTL option, but in the end it typically work out to being less expensive than purchasing a full container for a limited load. However, Thompson notes that there may be an obstacle to taking advantage of the service.

"[Small and large shippers have] the opportunity to have their freight consolidated with other freight to take advantage of some economies of scale. [But there is] a requirement that there has to be a brick-and-mortar terminal and a carrier to pick up and consolidate the freight."

Sourdough Express

In Alaska there are many companies that offer LTL services, such as...