In the past, the precursors of true Freight Optimization systems, so-called load or route optimization systems, considered only one LTL and Truckload rate and service for each shipment during the optimization process. Freight Optimization applications were fed these rates from either internal rate tables, or tariff bureau supplied electronic tariffs. […]
Multiple carrier rates will change the mode chosen for the movement of the freight. Generally, a full truck costs more than an LTL charge for a single shipment. However, with large mark LTL shipments, the crossover point of when an LTL shipment costs more than a full Truckload is dynamic.
Fourth Generation Optimization considers variances in equipment cost and requirements. Truckload and Intermodal carriers provide different types of equipment at different rates to meet a multitude of requirements. A shipper may wish to consider the tradeoff of using a 53ft Dry, a 45ft Ocean Container or a 40 ft. Domestic
Like line haul charges, accessorial costs vary depending on the carrier’s pricing strategy. An example of how accessorials can impact truckload routing is stop charges. Truckload carriers have different sensitivity to the number of stops they are willing to make in route, which is reflected in stop charges, not necessarily
Everyone knows that the truckload rates or LTL discounts dictate carrier selection based on a single truckload or LTL shipment price. An 8,000 lbs. shipment going from Chicago to Atlanta cost $1,335.79 to send as a full truckload and $649.66 as a single LTL shipment, so choosing which mode to