Supply Chain Network Optimization: Benefits & 3PLs
Shipping Less than Truckload (LTL) can save you money, time and headaches, but only if you ensure you’re following some simple guidelines. Working with a trusted transportation management partner can help ensure compliance. Accurately measuring cubic capacity and knowing the rules – and potential penalties – around it will make your shipping experience seamless.
In this blog post, we'll cover what LTL shipping means, how cubic capacity affects your costs, and the dos and don'ts to help you avoid penalties.
First, let’s look at exactly what LTL shipping means.
LTL shipping is sharing a truckload when you don’t have enough freight to fill an entire truck.
It’s a much more cost-effective way to ship products due to the carrier’s ability to utilize their network of terminals and equipment to consolidate freight traveling along the same pathways. LTL shipping is typically used for freight between 100 and 10,000 pounds.
The carrier can offer shipping rates well below what you would pay for full truckload shipping or parcel shipping. And if you’re a regular customer, you can negotiate contract pricing based on quantity and frequency over a period of time.
LTL is also fast – you can expect delivery times within days in many cases, making it an ideal choice for many.
It’s extremely important to know a few things when shipping LTL particularly related to cubic capacity, as this is one critical measurement taken into consideration and one that will affect your bottom line.
Here are some dos and don’ts to consider when shipping LTL related to cubic capacity.
DON’T Err When Measuring and Weighing Your Freight
In addition to freight class and weight, the cubic foot measurement is also required for pricing accurately.
Therefore, it’s of utmost importance to ensure you know exactly the cubic capacity of the item(s) you are shipping. The biggest reason for this is so you have an accurate quote on what it will cost, but also to ensure you avoid any penalties involved should your measurement be incorrect.
Cubic capacity can be calculated using the height, length, and width of an item. The simple formula is: Height x Width x Length = Cubic feet measurement.
When shipping items that aren’t perfect angles, you must take the longest measurement of each side — and keep in mind that many carriers now verify dimensions using a freight dimensioner. Additionally, if an item is on a pallet or crate, these items need to be included in the measurement. Essentially the cubic capacity must include all the freight being shipped.
For assistance use this free online cubic feet calculator. 0See how other shippers have optimized their LTL processes in our case studies.
DO Understand Minimum Cubic Capacity Rules
Most carriers impose minimum cubic capacity rules to ensure fairness of rates for each shipper. In many situations, carriers will require shipments that are 750 cubic feet or more and less density than six pounds per cubic foot to be adjusted with a minimum rate charge.
This charge and exact calculation can vary from carrier to carrier, so check with your carrier to ensure you understand this at the time of booking. It’s a question that will easily be answered by the carrier and included in the quote, provided you are giving accurate weight measurements and cubic capacity, of course.
DON’T Exceed the Limitation Listed on the Shipment’s Bill of Lading
When a shipper places the order and asks for a quote, a bill of lading is created with all the details. The bill of lading is a legal document and acts as a receipt. Everyone involved in the shipping process can refer to the bill of lading for the most important information about the shipment.
A carrier will often include a size limitation listed on the bill of lading, based on the volume, weight and dimension entered when a shipment is booked. This is why you must be sure the cubic capacity and weight are accurately reported. If the size of the freight is larger than what is listed on the bill of lading, you risk a cubic capacity violation.
If the shipper incurs a cubic capacity violation, it could mean significantly increased costs.
DO Try to Ship Less than 12 Linear Feet to Save the Extra Fee
For most carriers, shipments that are longer than 12 linear feet incur what is called an “extreme length fee” — one of several accessorial charges that can add up quickly. This is due to ease of shipping shorter freight. If it is at all possible to reduce the linear footage if your shipment is less than 750 cubic feet, you are only changed the cubic capacity fee, which is much less.
Obviously, you can’t control how some items are packaged, but if you can, try to adhere to this guideline and you’ll save yourself some valuable dollars.
DO Work with A Carrier Who Can Help Manage the Process
Shipping LTL can be a complex process. It’s important to choose a carrier that can help manage everything from start to finish. Redwood's Open 4PL approach helps consolidate all the logistics – from contracts to claims management if needed. This allows our shipping partners to focus on their business rather than the logistical details of shipping.
Final Thoughts
Accurate measurements, a clear understanding of minimum cubic capacity rules, and attention to the details on your bill of lading can keep your LTL costs predictable and help you avoid penalties. Contact us today to learn how we can streamline your LTL shipping process.
FAQs
What is LTL shipping, and when does it make sense to use it?
LTL shipping means sharing truck space with other shippers when you do not have enough freight to fill an entire truck. It is typically used for shipments between 100 and 10,000 pounds and can be a cost-effective option because carriers consolidate freight moving along similar routes. It is often a good fit when you want lower rates than full truckload shipping and delivery within days.
How do you calculate cubic feet for an LTL shipment?
Cubic feet for an LTL shipment is calculated by multiplying height × width × length. For irregular freight, use the longest measurement on each side, and include pallets or crates in the total dimensions. Accurate cubic footage matters because carriers use it, along with weight and freight class, to price the shipment and determine whether extra charges apply.
Why does cubic capacity affect LTL shipping costs?
Cubic capacity affects LTL shipping costs because carriers use it to determine pricing accuracy and whether a shipment meets minimum density rules. If the shipment is measured incorrectly, the quoted rate may be wrong and penalties can follow. Many carriers also use freight dimensioners to verify size, so the reported measurements need to match the actual freight being shipped.
What are minimum cubic capacity rules in LTL shipping?
Minimum cubic capacity rules are carrier policies that apply when a shipment is large but not dense enough for standard pricing. In many cases, carriers require shipments of 750 cubic feet or more with density below six pounds per cubic foot to be adjusted with a minimum rate charge. The exact rule can vary by carrier, so it should be confirmed at booking.
What happens if your LTL shipment is larger than the bill of lading says?
If the freight is larger than the bill of lading states, the shipment can trigger a cubic capacity violation. The bill of lading is a legal document and receipt that carriers use to verify volume, weight, and dimensions, so inaccurate information can lead to significantly increased costs. The safest approach is to ensure the reported measurements match the actual freight before booking.
What is an extreme length fee in LTL shipping?
An extreme length fee is an accessorial charge that many carriers apply when a shipment is longer than 12 linear feet. It exists because shorter freight is generally easier to handle and move through the network. If you can reduce the linear footage and keep the shipment under 750 cubic feet, you may avoid that higher charge and only be assessed the cubic capacity fee.
How can a transportation management partner help with LTL shipping?
A transportation management partner can help by managing the details that often cause LTL shipping issues, including booking accuracy, rate rules, and claims handling if needed. That support helps keep measurements, documentation, and carrier requirements aligned from start to finish. For shippers, the main benefit is fewer errors and more predictable freight costs.
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