How to Reduce Less Than Truckload (LTL) Freight Costs

If you manage transportation or freight within your supply chain, you’re always looking for ways to cut costs without sacrificing service. Since less-than-truckload (LTL) shipping is more complex than full truckload (FTL), there are numerous opportunities to reduce expenses—many of which shippers overlook. 

At Redwood Logistics, we help shippers identify these cost-saving opportunities every day. Below, we’ve outlined key strategies to lower your LTL freight spend while improving supply chain efficiency. 

Choosing the Right LTL Carriers: Diversify Wisely 

Shopping for the best carrier is one of the fastest ways to reduce freight costs. Rates vary between LTL carriers based on lanes, regions, and commodities—because each carrier has different network strengths. 

Working with multiple carriers can give you flexibility, but it’s not about quantity—it’s about alignment. You’ll see the best pricing and service when you work with carriers whose network and capabilities match your freight profile. 

How and What to Negotiate for the Best Rate 

Many shippers focus solely on securing the largest discount. Other factors can have just as much impact on your bottom line. 

While a high discount percentage might look good, a lower base rate with a smaller discount may result in a better price. You should also negotiate accessorial charges, including fuel surcharges, which are often overlooked. Many carriers are open to lowering or even waiving certain accessorials if you have a solid relationship and consistent freight volume. 

Packaging for Price: Improve Density 

As major carriers continue adopting dimensional weight pricing, inefficient packaging can cost you. Oversized boxes for small items waste trailer space, reducing carrier capacity and increasing your charges. 

By increasing pack density, you not only lower shipping costs but also reduce the risk of damage during transit. 

Transportation Management Software (TMS) 

A transportation management system is one of the most effective tools for lowering LTL costs. A TMS provides the data, automation, and visibility you need to make smarter freight decisions. 

With Redwood’s TMS integrations, you can compare carriers based on rates, transit times, and performance history—ensuring every shipment balances cost and service. 

Beyond analytics, a TMS can save labor by streamlining freight booking, tracking, and billing. And when you leverage data over time, you can identify trends, like a carrier that appears cheaper up front but racks up costs due to late or damaged deliveries. 

See it in action: In this Redwood case study, we helped a customer drive significant transportation savings by using TMS data to optimize carrier selection and shipment planning. 

Go Beyond a 3PL: Partner with a Modern 4PL 

While the above steps can lower costs, implementing them requires expertise, technology, and time. That’s where a logistics partner can help—but today’s supply chain challenges call for more than a traditional third-party logistics (3PL) provider. 

As a Modern Fourth-Party Logistics (4PL) provider, Redwood goes beyond brokerage or basic management. We combine freight expertise, technology integration, and strategic supply chain orchestration to deliver cost savings, improve visibility, and optimize across all modes, not just LTL. 

Start Reducing Your LTL Freight Costs with Redwood 
From carrier optimization and packaging strategies to TMS-enabled insights, Redwood Logistics helps shippers unlock savings while improving performance. 

Contact our LTL experts today to explore how our Modern 4PL approach can cut your freight spend and strengthen your supply chain.