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How Pooling Freight Beats LTL Shipping During the Pandemic

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COVID has created a score of challenges for the logistics industry. Shortages persist, and the market remains volatile. Pooling your freight at this time can help you maximize your spend.

With shippers looking for ways to trim expenses and try to position themselves as best they can heading into the holidays, how can pooling freight help?

Less Product, Just as Fast

One of the issues the pandemic has revealed is that while supply is subject to change, the demand for speed is not. That means even when there’s less freight to move around, the demand for speedy shipping still exists.

In addition to many companies shutting down and limiting production, falling demand means freight volume has seen a drastic decline. Conversely, people want their shipments just as fast, which has led to a situation where shippers are still paying for full truckload (FTL) services.

These actions lead to overspending and wasted capacity. This conflicts with the needs of most shippers. They want to be sure they’re conserving capital and strengthening their bottom line.

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Why LTL Isn’t the Answer

One solution may seem to be to switch to less-than-truckload, or LTL, services. After all, you’re not shipping a full truckload, so why pay for FTL service?

LTL may seem logical, but it increases transit times. LTL moves shipments through an outdated hub-and-spoke system. That means extra stops at various terminals and hubs, which increases shipping time, risk of lost shipments, and a higher chance of dissatisfied customers at the other end.

Since your customers want their shipments as fast, if not faster, LTL isn't the best solution. Fortunately, there’s a better option.

Pooling Freight Lets You Pay for What You Need

If you sat down and analyzed the cost of LTL shipping, you’d likely find a gap between what you need and what you’re paying for. Pooling freight offers an affordable alternative.

This solution combines the best features of LTL and partial shipments. It groups shipments moving from regionally similar locations to other similar destinations.

Unlike LTL, pooling lets the trucks move straight from Point A to Point B. You get faster transit times, but with LTL-like pricing. Since there are fewer stops, there’s also less risk of damage and losses.

Pooling is more efficient from a space perspective. Instead of operating trucks that are only partially full, combined shipments allow each truck to run with a full load.

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Discover Better Shipping 

Pooling freight is the perfect solution for today’s uncertain environment. It allows you to maximize spend, while also giving you access to faster delivery times and lower risk of damage and loss. In turn, shippers will find they have more satisfied customers at the other end of the line.

Pooling freight isn’t just a smart solution during the pandemic, though. As the shipping landscape continues to shift and evolve, freight pooling will remain a smart choice for the future too.

How does FreightPOP give you control in pooling freight?

We are built on two decades of shipping & logistics experience with a single platform that allows shippers to manage data on all inbound and outbound shipments across parcel, LTL, FTL, ocean, and international air.

Learn how we can help you manage pooling freights, aggressively shop marketplace rates, and seamlessly integrate with you and your carrier's systems for faster processing. Reach out for a demo today

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