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The less than truckload (LTL) market is forecasted to grow 2-3% in 2025. This is likely because, on the surface, LTL makes for a more cost-effective option with fewer risks to shippers. However, without freight LTL tracking, companies might find themselves paying more to ship less.
Here’s what you need to know about the rise in LTL theft and how Overhaul’s solution helps you track LTL shipments.
Why LTL freight shipments are on the rise
Less than truckload shipping allows companies to ship smaller cargo loads that don’t require the full space of a trailer. This leads to many advantages, including:
- Cost savings: For shippers that don’t have the volume to fill a full truckload, it makes financial sense to ship via LTL vs. FTL. They are essentially only paying for the space that they occupy vs. a full truckload.
- Accessibility: LTL carriers have extensive networks which provide access to a wide range of destinations and services such as pick-up and delivery.
- Flexibility: LTL enables businesses to ship smaller quantities of goods more frequently. Orders can ship without having to wait to fill a full truckload.
- Corporate ESG and sustainability goals: LTL consolidates multiple shipments onto one truck, leading to fewer trucks on the road, which reduces environmental impact.
While a benefit in many ways, LTL shipments also face unique risks when compared to full truckload (FTL) shipments. And as LTL shipments continue to grow in popularity, criminals will continue to adapt their strategies, meaning even greater risks.
Unique LTL risks
One of the most notable risks surrounding LTL shipments is the lack of knowledge concerning said risks. In other words, shippers often assume that an LTL shipment is inherently safer than an FTL shipment due to the smaller load size. However, the operational logistics surrounding LTL transportation can be far more complex than FTL loads. Additionally, even if you are shipping a small quantity of products, your shipment’s value can still be extremely high.
Other less than truckload risks include:
- Handling risks: Since LTL shipments consolidate freight from multiple shippers, each shipment is handled more frequently as it is loaded and unloaded to make room for other cargo or to align with the truck’s routing. This increased handling can elevate “MWD” risk, or the possibility that the load becomes “Missing, Wrong, or Damaged.” Additionally, each touchpoint introduces the potential for delays, misrouting, or loss.
- Complex routing: LTL shipments typically involve more complex routing than FTL shipments (i.e., A=>B vs. A=>B=>C=>D). The cargo may be moved through multiple hub and spoke systems. This increases the time in transit and the potential for operational errors. In turn, MWD risks compound even further.
- Product quality concerns: Due to the increased interactions between different products, there is the potential for a spike in the risk of damage or contamination. To rephrase, an improperly secured load could shift during transport, causing it to damage a different company’s cargo. This could involve a heavier product falling on and breaking a lighter one, cross-contamination from various food products, or a slew of other issues.
- Security concerns: LTL freight tracking and monitoring can be overly complex due to the intricate routes and number of handoffs. This can make it difficult to maintain visibility throughout the shipment’s journey. In turn, it becomes that much harder to identify and respond to threats.
The benefits of Overhaul’s freight LTL tracking solution
In order to securely ship LTL loads, companies need to invest in security, but not just any solution will do. Shippers need to maintain visibility from origin to destination, and they require advanced tools to put that visibility to use. Fortunately, Overhaul makes that possible with our holistic visibility and risk monitoring solution, which includes:
- Enhanced tracking: Utilize advanced IoT tracking and real-time monitoring systems to keep tabs on your cargo throughout its journey.
- Complete order: Leverage IoT to ensure that the order transits and arrives at the intended destination intact (i.e., 5 of 5 vs. 2 of 5). Should a pallet or multiple pallets get separated from the order, real-time notifications enable you to quickly investigate.
- Visibility software: Utilize Overhaul’s supply chain visibility platform to get real-time alerts and analytics on your shipment’s transit. This can help in quickly addressing any deviations or suspicious activities.
- Risk assessment tools: Employ predictive analytics to assess and mitigate risks. These tools keep tabs on everything from routes to carrier performance and other logistics factors.
- Quality control checks: Implement stringent quality controls at each handling stage to ensure your cargo remains secure and intact.
- Carrier compliance: Work only with carriers who comply with high-value standards of operation and security. Overhaul FraudWatch ensures you’re only hiring carriers who have a proven track record in handling LTL shipments securely. Plus, we’ll alert you to any red flags, such as unscheduled stops, during transport.
- Insurance: Unlike most visibility SAAS providers, Overhaul offers insurance as a service. In 2024, one consumer electronics company estimated $80 million of loss in MWD. With Overhaul’s insurance, those losses can be easily recouped.
- Improved customer experience: Provides customers with real-time tracking of their order. This includes location of order, environmental factors (i.e., light exposure, temperature), estimated time to delivery, and more.
- Recovery support: Theft prevention is always the goal. But should the worst happen, Overhaul works with law enforcement to aid in FTL shipment recovery.
In short, when it comes to security, your less than truckload shipments deserve nothing less than the best. Overhaul makes it easy to keep your shipments safe while also ensuring product quality, improving compliance, and providing support in worst-case scenarios.
Reach out to learn more about our LTL freight tracking solutions.
