Choosing the right shipping mode can significantly impact your bottom line and delivery efficiency. If you’re dealing with varying shipment sizes, deciding between Less Than Truckload (LTL) and small parcel shipping is critical.
First, to note: Shipium is not a traditional TMS and does not replace your existing system. Normal management of LTL use cases and workflows are best within one of our many excellent TMS partners. We do not compete with or replace your TMS. Instead, there are certain companies who have workflows where optimization calculations between LTL and parcel modes are usually found within the parcel shipping management system—which is what Shipium is.
For users with those use cases, this post will explore how Shipium’s LTL costing APIs enable shippers to optimize mode and carrier selection within parcel workflows and pass those decisions to their TMS system of record.
Deciding between LTL and small parcel
When a shipment's size and weight fall into a grey area—too large for a typical small parcel but not enough to fill an entire truck — Shipium's LTL Shipment Cost Compare API becomes your go-to decision-making tool. This API allows you to directly compare costs and transit times between consolidating multiple smaller packages into a single LTL shipment, or shipping them individually via small parcel carriers.
Some common outcomes include:
- Cost Optimization for Grey-Area Shipments: Businesses frequently encounter shipments that are just over the typical weight or dimension limits for standard small parcel services, making LTL an alternative. This API helps to identify whether combining these items into an LTL shipment would be more cost-effective to avoid overspending on multiple oversized parcel charges.
- Balancing Speed and Cost: The API considers desired delivery dates and transit times, allowing you to evaluate if a slightly longer LTL transit is offset by significant cost savings, or if the urgency demands the faster (but potentially more expensive) small parcel option.
- Customer-Facing Shipping Options: This API can power dynamic shipping options at checkout, presenting customers with transparent options that reflect the true cost and estimated delivery for both LTL and parcel alternatives, especially for larger or multi-item orders.
To leverage this API, you’ll provide details like the origin and destination addresses, the items or packages being shipped, and desired delivery dates. Shipium then returns the recommended transportation type (LTL or parcel), the total estimated cost for that recommendation and more.
It’s worth noting that Shipium’s modeling plays a critical role here, as the transit times used for mode selection account for your data, historical performance across millions of shipments, and real-world conditions (ex. A carrier holiday).
Precise pricing for LTL freight
When it’s clear that shipments are LTL—whether it's a single large item or multiple items consolidated onto pallets—Shipium offers precise costing and carrier selection. The LTL Shipment Cost API is used to focus solely on LTL freight, providing control and visibility for your larger shipments.
Use cases include:
- Accurate Freight Quoting: For businesses that regularly ship LTL freight, this API provides instant and accurate quotes based on your negotiated carrier contracts, specific accessorial services required, and freight class. This eliminates manual quoting and ensures consistent pricing.
- Optimal Carrier Selection: Beyond just cost, the API helps you select the best LTL carrier based on various factors such as delivery date and carrier preferences. This ensures your LTL shipments are handled by the most suitable provider for your business goals.
- Managing Complex LTL Shipments: Shipium accommodates complex parameters like hazmat materials, collect-on-delivery scenarios, or shipments requiring third-party billing, providing accurate costing that factors in all the necessary considerations.
When utilizing the API for pure LTL costing, you'll provide the precise details of your LTL load, including its National Motor Freight Classification (NMFC) freight class, dimensions, and weight. You'll also specify payment terms and the exact pickup date. The API response will then provide the total estimated cost for your LTL shipment, details about the chosen LTL carrier and its service, and a breakdown of applicable charges and surcharges.
Wrapping up
Shipium's LTL capabilities empower you to take control of your shipping spend while meeting customer expectations. By providing the tools to accurately compare LTL and small parcel costs or to get precise LTL quotes, these APIs allow you to move beyond guesswork and manual processes. Making data-driven decisions that account for real-world transit times leads to significant savings, improved delivery speed, and more efficient operations.
Whether you're navigating the complexities of "grey-area" shipments or fine-tuning your dedicated LTL operations, Shipium's costing capabilities ensure you're always choosing the optimal path for your shipments.
Ready to optimize LTL<>parcel decisions within your parcel shipping technology? Reach out to our team here.
Anurag Allena
Anurag Allena
