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The Unseen Benefits of LTL Consolidation

February 10, 2024 0LinkedIn Postings

Companies with substantial LTL freight budgets are looking for ways to lower expenses and boost service efficiency. One strategy gaining traction is the consolidation of Less-Than-Truckload (LTL) shipments into multi-stop truckloads, which provides cost savings and a variety of operational improvements.

  • Cost Savings: On average, Synchro clients have seen a reduction of 5% to 15% in their LTL spend.
  • Indirect Savings: The consolidation process leads to fewer labor hours spent on handling pallets for LTL shipments, translating into significant labor cost savings.
  • On-Time Tracking Improvement: Tracking a single truckload is simpler and more efficient than monitoring multiple LTL shipments, leading to better on-time delivery rates.
  • Yard Efficiency: With fewer trucks entering and exiting the yard, businesses can experience a smoother flow of goods and reduced congestion.
  • Claims Improvement: By minimizing the handling of freight and avoiding LTL cross-docks, the risk of damage during transit is significantly reduced, leading to fewer claims.
  • Environmental Savings: Consolidation results in fewer trucks on the road, which in turn reduces carbon emissions and contributes to sustainability efforts.
  • Savings in Refrigerated Freight: For businesses dealing with refrigerated goods, LTL consolidation can lead to savings of over 20%, making it a highly cost-effective option.
  • Leverage with LTL Vendors: demonstrating that you can remove freight from higher-cost vendors leads to discussions with the vendor about lower costs and a better partnership.

By embracing LTL consolidation, businesses can not only enjoy substantial cost savings but also contribute to a more sustainable and efficient supply chain. Synchrogistics has the experience and team to implement an optimization program for you. Reach out to us for a free optimization assessment.

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How Can LTL Consolidation Transform Your Logistics Strategy?

February 5, 2024 0LinkedIn Postings

By converting multiple less-than-truckload (LTL) shipments into a single, cost-effective truckload, LTL consolidation significantly reduces shipping costs per pound. This method enhances cost savings, decreases claims, and simplifies shipment tracking compared to managing individual LTL shipments. Despite its benefits, many companies overlook LTL optimization due to perceived complexity, technological constraints, previous failures, internal opposition, or unawareness of its potential.

Synchro has been a leader in LTL consolidation for over a decade, skillfully managing both refrigerated and dry freight for clients from varied locations and technological backgrounds. Our unique combination of experience and technology provides an unparalleled advantage. To explore how LTL consolidation can benefit your company, consider Synchro’s offer for a free consolidation assessment.

Learn how our specialized approach can streamline your shipping processes and unlock substantial savings.

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LTL Pricing Post-Yellow Freight

October 16, 2023 0LinkedIn Postings

Three bullet points about LTL pricing and long-term capacity. As shown in the chart below, fuel prices and Yellow’s exit have produced an increase in LTL pricing. However, how long it lasts is another question…

1.  Yellow Freight’s Impact: The demise of Yellow Freight in August took 10% of industry capacity offline, which provided a backstop against the price erosion seen over the last 12 months. However, the distribution of its market share has not been uniform. Carriers with more pricing and footprint overlap have benefited more, with Saia and XPO being notable gainers among public companies.

2. Pricing and Capacity: The worries about overcapacity have been somewhat allayed by Yellow’s exit. Carriers are trying to hold the line on GRIs and are more aggressively going after rate increases on less profitable customers. However, the tea leaves are not looking positive for LTL volumes to increase meaningfully in the near-term – ISM new orders are still in contraction territory (though it’s improving from earlier this year). We see a balanced pricing environment in the LTL space in the coming months.

3. Terminal Capacity: Longer term, terminal capacity in the industry remains constrained due to significant inflation in real estate prices. Carriers have been cautious in expanding, and the sale of Yellow’s real estate portfolio is expected to take time and require renovation. Net fixed capacity in the industry is believed to be declining. As e-commerce increases and (hopefully) the economy improves, terminal capacity could become a bottleneck leading to higher LTL rates in 2024 / 2025.

Source: US Bureau of Labor Statistics Data