Hiring trucking companies are not as easy as it may seem. Less reputable trucking companies may include clauses in their “standard” contract that will end up costing a business significantly more than the quoted rate or price. Some clauses may also limit the liability of the trucking service, leaving your business with limited recourse when and if these less than truckload companies make a mistake.
There are several mistakes that unsuspecting companies make when contracting directly with less than truckload companies. These LTL (Less than Load) service providers offer local, regional or national hauling for loads smaller than a full truck.
Not Understanding the Bid and Additional Costs
When an LTL company provides a bid for service, they will consider several different factors. This includes the origin of the shipment, the destination, the type of load (class) as well as the weight of the load.
Often companies will also have additional charges that are provided somewhere in the fine print. If you are shipping multiple locations or if you have to reschedule a pickup or delivery, these additional prices can quickly add to the cost.
Common additional costs, which are often called accessorial charges, include delivery to a residence, the requirement to move the load indoors, the need for lift gate service or even delivery outside of specific business hours.
Specialized Shipping Requirements
If the load requires specialized shipping requirements such as consistent temperature, stacking limitations or other types of requirements, make sure this information is provided to the less than truckload companies before a price is quoted.
When accepting a bid, make sure the specialized shipping requirements are listed in the contract in the exact terms you require. Failing to do so can end up in additional charges as verbal agreements are not binding if they are in written form in the contract as well.
To avoid these mistakes, most businesses turn to 3PL providers. These logistics companies can coordinate the entire supply chain and delivery for you, allowing you to focus on your business while they handle the freight.