Commingling Trailer Space

The Next Level of Lean Logistics

Consolidating shipments is nothing new to logistics and it can reduce expenses significantly. However, these benefits come with a price tag; consolidating usually requires waiting until the shipment reaches a size threshold to generate the returns. What if you don’t have to wait to consolidate your shipment and save money? Commingling trailer space for Less-Than-Truckload (LTL) shipments represents the next frontier in lean logistics, maximizing trailer efficiency and cutting costs. With recent technology, shippers can find open trailer space to commingle their shipment with a multi-stop truckload. What applications help identify available truck space? How much can shippers save compared to traditional LTL?

Finding Open Trailer Space for Commingling: LTL shippers can access open trailer space by partnering with freight consolidators or third-party logistics providers (3PLs) who specialize in combining partial loads into multi-stop truckloads. Consolidators use regional terminals to sort and group shipments with similar destinations, optimizing routes. Shippers provide accurate weight, dimensions, and destination details via a Bill of Lading (BOL) to ensure compatibility. Freight brokers also connect shippers with carriers offering available space, using real-time load boards to match LTL shipments for multi-stop routes. This process reduces empty trailer space, with consolidators achieving up to 90% trailer utilization compared to 60% in traditional LTL.

Technology that Identifies Open Truck Space: Digital platforms streamline access to open trailer space. Transportation Management Systems (TMS) like MyCarrier and RXO Connect use AI to analyze LTL loads, match them with nearby routes, and build multi-stop truckloads. RXO Connect offers on-demand quoting and visibility into carrier capacity, enabling shippers to book shared space instantly. Flock Freight’s FlockDirect® specializes in shared truckload (STL), pooling LTL shipments for direct, multi-stop deliveries with minimal terminal handling. These tools provide real-time tracking and rate transparency, simplifying coordination. CloudTrucks’ TMS, for example, creates consolidated loads in under a minute, enhancing efficiency for small shippers.

Real savings from Commingling: Commingling through consolidation or STL can save shippers 10-20% compared to using a traditional hub and spoke class base LTL programs. Traditional LTL involves multiple terminal stops, increasing handling costs and transit times, with rates averaging $2-$3 per mile for 1-6 pallets. Commingling minimizes terminal stops, reducing fuel and labor costs, and leverages shared space for lower per-pound rates. For example, consolidating six pallets into a multi-stop truckload can cut costs by $200-$500 per shipment, depending on distance, density and class.

Savings without Consolidating or Commingling

CPC has developed a simplified cost-per-pound program; this replaces the antiquated Class-Base LTL programs and generates savings of 30% on average. These results are achieved by removing the buffer and waste commonly found in LTL class base programs. Also, the new compliance requirements are being rolled out by the NMFC later this month and the CPC approach further enhances savings by simplifying pricing and avoiding reclassification fees.

Contact CPC Consultants for a logistics assessment to unlock savings and streamline your supply chain today.The post Commingling Trailer Space first appeared on Transportation, Shipping, Supply Chain, Freight Consultants.
Source: CPC Consultants, LLC