How Shippers Can Reduce Transportation Costs: Part 1


The LTL sector of the trucking industry might be seeing some fluctuation in the near future. According to a survey, conducted by Wolfe Research between March and April, many shippers expects that LTL rates will rise by 0.9% — a much lower level compared with LTL carriers’ claims of what they won in first-quarter contract bids.

With any flux in the transportation industry, one of the key factors will always be capacity, which means that shippers will have to work tirelessly to control costs if they want to remain competitive.

In this series of blog posts we highlight areas in logistics programs where, based on our experience, there is great potential for improved productivity and cost savings.


In an annual study, conducted jointly by Nucleus Research and DC Velocity, transportation management software (TMS) was used by 41% of shippers and 3PLs surveyed.

TMS can aid businesses in 5 distinct ways; automation, control, optimization, visibility, and compliance.

Read more: Shipping and Logistics Technology Solutions

As results are speaking for themselves, it’s no wonder that this shipment and carrier management software is becoming a go-to for any logistics operations.

Data entry

Data entry for such key elements as weight, dimension, and classification, as well as other key information about shipments can easily be a spot for a simple, yet costly mistake causing a loss of both time and money for shippers.

A solid TMS can be very helpful here too, to populate entry forms with info directly from CRM system and/or shipping contracts, reducing the amount of manual data entry necessary, as well as the potential for typos.

Proper Classification

Are your shipments classified properly? One of the most common issues is that LTL shipments are wrongly classified which, for shippers can double the amount of originally quoted freight rates.

The National Motor Freight Classification Guide is updated yearly to standardize freight pricing. Currently, there are 18 different freight classes according to the NMFC, ranging from the lowest, class 50, the most expensive, class 500. Freight rates are calculated according to freight class, so it’s important to have the right class in order to get the best rates for your shipment.

Read more: How To Determine LTL Freight Classes & Avoid Reclass Fees

As time progresses, having the right technology and the right logistics partner not only helps with providing exceptional services but more and more necessary for a business looking to grow.