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If you ship via LTL carriers, you may have noticed an uptick in pricing on your shipping invoices. While the driver shortage and rising fuel costs are major contributing factors, the inclusion of dimension-based equipment is showing up on many shippers' invoices. But it's not because the LTL carriers need to recoup their investment dollars – but actually, the shipper's initial estimates based on their measurements are incorrect. Many carriers are starting to use dimensioners or dimension scanning machines that are designed to help provide accurate load measurements, which is directly impacting LTL cost.
There are a few reasons why the leading carriers (and their competitors) are beginning to integrate this technology into their daily operations. In this blog post, we'll explore why LTL carriers are adopting dimension-scanning technology and how it impacts your shipping operations.
Why Are LTL Carriers Using Dimension Equipment?
Over the past few years, the use of dimension-based scanning equipment has increased 300 percent, which has improved the consistency of LTL cost for the measurements. There are several reasons why some of the top carriers represent the overall LTL operations in the United States and are using dimension-based technology.
• Improves Carrier Efficiency: If there is an enemy to the LTL carrier – it's empty space inside the cargo container. The use of dimensioners has vastly improved the efficiency of each load, ensuring that each truck leaves with an optimal capacity, for maximum profitability and improved service.
• Customer Service is Improved: Before dimension-scanners became popular, you would typically receive a shipping estimate, which would be significantly different than the final bill you received. In most instances, your cost is more than the original estimation. This methodology helped to create a negative stereotype with many LTL carriers and thus, reduce customer service levels. By using the dimensioner, the LTL carrier can provide you with more accurate estimates for your freight, providing better transparency and working on improving the customer experience.
• Improves Delivery Time: When an LTL route is dispatched from a terminal, it's going to be optimized for maximum efficiency. This doesn't always mean loading the truck to maximum capacity, however. Many carriers are finding that the dimension-based technology is helping them to plan delivery routes that are shorter, reducing LTL transit times and optimizing for quicker delivery.
What is the Impact of Dimension-Scanners on Shippers?
Forecasting is a critical function of any business. This is arguably the biggest impact that the use of dimension-scanners has on the shipper – but in a positive way. The integration of dimension-based scanning equipment, used by carriers provides you with more accurate estimations for shipping costs, which you can use to help budget for LTL shipping expenses.
As noted above, the LTL carriers are also seeing a reduction in the delivery time. When your customer is receiving their freight earlier than expected, it improves customer service – but also makes you look good in the eyes of your customer. As more carriers begin to integrate dimension-scanners at more depots and terminals, you'll discover that their use is actually in your best interest.
How the Carrier Can Help Shippers During this Integration
Dimension-scanning equipment will become commonplace with carriers in multiple modes – not just the LTL industry. There are a few ways that carriers can assist their customers through the integration of this technology that will reduce communication errors, improve shipping estimates, and improve customer service.
• Keep customers well informed: Education is the key to the effective integration of any new technology. This includes communicating with shippers on how these systems work, and what they can do to improve their freight optimization.
• Maintain the equipment for accurate measurements: Dimension-scanning equipment is professionally built and designed to withstand frequent use. However, they also require constant calibration and routine service to provide accurate measurements. The worst thing LTL carriers could do is provide false estimations to their customers due to faulty equipment – as this would widen the already fragile trust factor between carriers and shippers.
Final Thoughts
The best way for you to plan for the inevitable integration of dimension-scanning systems is to document the rates that each LTL carrier is giving you for each shipment sent and regularly audit your freight invoices for discrepancies. If you are a shipper that is new to logistics or just not quite certain how LTL cost can impact your operation, contact Redwood Logistics. With a Modern 4PL approach and advanced technology integration, Redwood can help you navigate the complex world of LTL logistics.
FAQs
Why did my LTL cost go up even though my shipment details stayed the same?
Your LTL cost can rise when the carrier remeasures the freight with dimension-scanning equipment and finds that the original shipper estimate was off. That usually means the shipment was priced on incorrect dimensions, which changes the billable shipment profile. Rising fuel costs and driver shortages can also affect pricing, but inaccurate measurements are a major reason invoices increase.
How do dimension scanners affect LTL shipping costs?
Dimension scanners affect LTL shipping costs by giving carriers more accurate freight measurements, which can change the estimate and final invoice. When a shipment is measured correctly, the carrier can price it more consistently and optimize trailer space. For shippers, that means fewer surprises, better budget forecasting, and a clearer view of actual transportation expense.
Why are LTL carriers using dimension-scanning equipment now?
LTL carriers are using dimension-scanning equipment to improve load efficiency, customer transparency, and delivery performance. The technology helps reduce empty space in trailers, gives shippers more accurate estimates, and can support shorter delivery routes. The article also notes that use of this equipment has increased 300 percent over the past three years among leading carriers.
How can shippers forecast LTL expenses more accurately?
Shippers can forecast LTL expenses more accurately by documenting the rates each carrier gives for every shipment and comparing those estimates against final invoices. Dimension-based scans make carrier pricing more precise, so keeping detailed shipment records helps you spot patterns and budget more reliably. Regular freight invoice audits are also important for catching discrepancies.
What should shippers do if their LTL invoices don’t match the original quote?
Shippers should audit the freight invoice and compare the billed amount against the original shipment estimate, including dimensions and carrier rate details. If the carrier used dimension-scanning equipment, a mismatch may reflect corrected measurements rather than a pricing error. Keeping records of each quote and shipment makes it easier to identify discrepancies and resolve them.
Do dimension scanners improve LTL transit times?
Yes, dimension scanners can help improve LTL transit times by supporting better route planning and more efficient truck utilization. When carriers can optimize load planning at the terminal, routes may be shorter and deliveries can arrive sooner. Faster delivery can also improve customer service by reducing the gap between expected and actual arrival times.
What can carriers do to make dimension-based LTL pricing easier for shippers to manage?
Carriers can make dimension-based LTL pricing easier to manage by explaining how the technology works and keeping equipment properly calibrated. Clear communication helps reduce confusion over estimates and billing, while routine maintenance supports accurate measurements. Without that transparency, faulty readings can create trust issues between carriers and shippers.
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