Youve got questions Weve got answers Getting Up

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You’ve got questions. We’ve got answers. Getting Up to Speed on LTL Freight Shipping

You’ve got questions. We’ve got answers. Getting Up to Speed on LTL Freight Shipping Getting up to speed on LTL freight shipping 1

Less-Than-Truckload (LTL) Industry Overview • • – – – • 1 The domestic transportation

Less-Than-Truckload (LTL) Industry Overview • • – – – • 1 The domestic transportation market is between $800 B and 2 $1. 3 T depending on how supply chain, logistics support and transportation services are classified Traditional subsectors include: Air and express delivery services Rail (both commodities and freight) Logistics (warehousing fulfillment, inventory management) Maritime (Full container Load ([FCL], Less-than-Container load [LCL]) Trucking: Surface transportation including truckload (TL), Less-than. Truckload (LTL) LTL carriers pickup and deliver shipments too small to justify a full truckload but are too large to move via a parcel carrier (e. g. , palletized freight) 1. Morgan Stanley 2013, 2. selectusa. commerce. gov 2011 2

How LTL Shipping Works 3

How LTL Shipping Works 3

How the LTL industry determines the cost of shipping Basics of LTL shipping •

How the LTL industry determines the cost of shipping Basics of LTL shipping • LTL freight can weigh between 150 lbs. and 20, 000 lbs. , and measure up to 21 feet in length • The cost of shipping Less-then-Truckload (LTL) freight is driven by fours basic factors: • Classification or type of freight according to the National Motor Freight Classification (NMFC) • Weight • Distance to ship • Transit time required In addition carriers will likely request information like: – – – – Account number (if applicable) Does your business have a dock? Is a call before delivery required? How is it packaged? The shipment’s dimensions (length, width and height) The shipment’s value (for insurance and liability purposes) Special handling needs? V 1 March 12, 2014 4

Why shippers use LTL ? Less-then-Truckload (LTL) is ideal for manufacturing, retail, pharmaceutical and

Why shippers use LTL ? Less-then-Truckload (LTL) is ideal for manufacturing, retail, pharmaceutical and government: • Many LTL carriers offer: – Regional next- and second-day LTL service, as well as national long-haul services – All-points coverage throughout the country, including NAFTA cross-border for Canada and Mexico – 99%+ on-time reliability • Industries rely on LTL carriers to reduce and manage inventories: – Ideal for inventory replenishment – Enables better planning for product distribution or production • The LTL industry is designed on a “hub-and-spoke” network system, so shippers can expect fast-cycle logistics, especially for retail, supplies, equipment and parts 5

What you should expect from a LTL carrier Shipping palletized freight is complicated. You

What you should expect from a LTL carrier Shipping palletized freight is complicated. You need support from a carrier to make it easier: • Types of service: – Some carriers specialize in regional LTL or long-haul, heavy-weight LTL shipping • Many offer all-points U. S. coverage of every ZIP code • Some offer Money back guarantees • On-time reliability based on your requirements • Fast claims processing 6

The Basics of Less-than Truckload (LTL) shipping Thank you for your time. Please ask

The Basics of Less-than Truckload (LTL) shipping Thank you for your time. Please ask questions! Joseph K. Filipiak Fed. Ex Services World. Wide Account Manager 30676 East Rustic Drive Salisbury, MD 21804 410 -749 -9936 joe. [email protected] com 7