Check out "spot pricing" on heavier LTL loads

By Ray Bohman -- Logistics Management, 6/1/1999

If you're looking for pricing concessions on heavier-weight LTL shipments--rates that may be even better than the discounts and/or FAKs ("freight, all kinds" rates) you already enjoy--you may want to check with carrier "spot pricing" sections.

Today, most major LTL carriers have "spot pricing" sections that quote rates for shipments that are due to be shipped soon and that meet certain size requirements. (Roadway Express, for example, will provide quotes only for shipments that weigh a minimum of 7,500 pounds or LTL shipments that take up the full visible capacity of a trailer.) These generally are one-time loads that will be moving within the next few days or week. Typically, carriers will deal with you even if you're not a regular customer.

Although there is no guarantee you'll be able to get a better rate than you already receive, the very nature of your shipment may make it eligible for a lower price. Characteristics that determine your freight's attractiveness to carriers include the day of the week it will be moving, the direction in which it will be going, how much space it will occupy, the time of the year, how easily it can be handled through terminals, and its susceptibility to loss or damage.

The rates the carriers quote generally prevail for only a short time. If you're looking for a price for a shipment two to three months out, you can generally forget about the "spot pricing" section, although you still may be able to negotiate special pricing for your load.

Once you receive a price quote over the phone, which is generally a rate per 100 pounds and minimum charge, the carrier will, if you wish, fax you a confirmation. That confirmation will specify the rate that will apply and state how long the rate will remain in effect, which many times is seven days from the date of the quote.

Among the advantageous features of these volume-shipment programs are:

- ready trailer availability

- same-day pickups

- competitive transit times.

Opportunities also may exist for headloading heavier-weight LTL shipments into trailers, thus avoiding any terminal handling en route, thereby providing the equivalent of truckload service. Of course such arrangements should be made in advance. Some carriers may be reluctant to give you an ironclad guarantee; however, they will do everything possible to leave your load undisturbed in the trailer in which it is loaded all the way to final destination if requested to do so.

Despite the potential for gaining pricing concessions through LTL carrier "spot pricing" sections, you should not overlook the possibility of securing favorable pricing deals from truckload carriers--the likes of Schneider National, J.B. Hunt, Swift, and Landstar, to name but a few--or from licensed property brokers. Although they focus primarily on volume shipments--full truckloads or containerloads--many will quote prices on heavier-weight LTL shipments as well.

Ray Bohman is a well-known consultant and author. Mr. Bohman is editor of several highly successful newsletters on transportation and is a consultant to a number of national trade associations. He is president of The Bohman Group, consultants and publishers in the freight-transportation field. His offices are located at 27 Bay Lane, Chatham, MA 02633. Phone: (508) 945-2272.