Less-than-truckload (LTL) is one of the most cost-efficient ways to move smaller loads. By shipping smaller loads, LTL lets you pay only for the space you use. However, with LTL’s many benefits come certain risks. Common missteps ranging from incorrect freight classification to ignoring accessorial charges or incorrect weights can quickly eat into those savings and complicate delivery timelines.
Recognizing and addressing these five common LTL mistakes can help you improve delivery reliability, minimize billing errors, and trim your shipping budget. This is especially important with changes coming in July to NMFTA classification that will reset the balance in LTL more in favor of freight density, with lighter, bulky goods incurring higher rates.
Mistake #1: Misclassifying Your Freight
One of the most frequent and expensive mistakes is misclassifying freight. Every LTL shipment is assigned a National Motor Freight Classification (NMFC) code, which determines its freight class and rate. Shippers sometimes guess at the code, use an outdated classification, or deliberately under-classify to try to cheat the system.
Carriers, which became wise to this game long ago, often verify the freight class during transit. If your shipment is misclassified, it may be reweighed and reclassed, resulting in unexpected charges, delays, and potential chargebacks. This not only causes billing disputes but can also damage relationships with carriers.
How to avoid it:
- Use a freight classification tool or partner with a freight expert such as a reputable 3PL to ensure accuracy.
- Perform an annual audit of your product catalog to confirm that your classifications align with the latest NMFC guidelines.
- Train staff on how freight class is determined and its impact on shipping costs.
Mistake #2: Inadequate Packaging and Labeling
LTL shipments are handled through a hub and spoke network. Improper packaging increases the risk of damage, loss, or refusal, especially if goods aren’t secured properly or if packaging isn’t compatible with the LTL environment.
Some shippers try to cut corners by using consumer-grade packaging, placing items on unstable pallets, or failing to label goods clearly. This leads to damaged freight, refused deliveries, and sometimes added re-palletization or handling fees from carriers.
How to avoid it:
- Use uniform, shrink-wrapped pallets to keep your freight stable and secure.
- Label each pallet clearly with scannable barcodes, bill of lading (BOL) numbers, and destination addresses.
- Include handling instructions like “This Side Up” or “Fragile” as needed.
- Establish minimum packaging standards and enforce them through your carrier contracts.
Mistake #3: Overlooking Accessorial Fees
LTL base rates only tell part of the story. Accessorial fees inflate your total shipping costs significantly. These include charges for liftgate usage, residential or limited-access delivery, inside delivery, appointment scheduling, etc. The use of accessorials is often expanded by carriers to augment revenue, especially in times of lower demand and higher capacity.
If you don’t factor in potential accessorials when getting a carrier’s quote, you’re likely to encounter surprise charges after delivery.
How to avoid it:
- Identify every accessorial you could potentially incur based on your shipment profile and delivery locations.
- Build accessorials into your landed cost models to generate more accurate quotes.
- Use a TMS or freight visibility tool to track shipment milestones and monitor where and when fees are applied.
- Ask your carriers to clearly define accessorial fees and when they apply in your contracts.
Mistake #4: Failing to Leverage Multi-Carrier and 3PL Networks
Many shippers fall into the habit of using a single LTL carrier or perhaps a couple based on convenience and/or long-standing relationships. While loyalty has its place, this approach limits your access to competitive rates, available capacity, or faster transit times. Relying on a single source also leaves you vulnerable to rate hikes, service disruptions, or coverage gaps.
How to avoid it:
- Use multi-carrier rate shopping software, either stand-alone or within your TMS, to compare transit times and costs across several providers.
- Partner with a 3PL that can offer access to a broader network of LTL carriers.
- Run mini-bids or spot RFPs on high-volume lanes to secure better rates and capacity.
- Diversify your shipping strategy by negotiating volume commitments across multiple carriers to ensure flexibility.
Mistake #5: Poor Documentation and Compliance
Incorrect documentation can quickly derail an otherwise smooth shipment. An incomplete or incorrect BOL, vague delivery instructions, and poor recordkeeping lead to refused pickups, delivery errors, or even legal penalties. This is especially true when shipping regulated goods like hazmat or refrigerated freight.
How to avoid it:
- Standardize your BOL templates with all required fields, including weight, freight class, handling instructions, and accessorials.
- Use e-documentation tools that allow real-time access to BOLs, PODs, and shipment records.
- Train staff regularly on compliance requirements, particularly for specialized freight such as hazmat or pharmaceuticals.
Turning LTL from a Cost Center into a Competitive Edge
LTL shipping has the potential to reduce freight spend and increase flexibility, but only when executed with precision. The most common mistakes can quickly turn a cost-saving option into a logistics nightmare. Avoiding these pitfalls starts with clear processes, modern tools, and expert support.
At Wicker Park Logistics, a woman-owned logistics company and WBENC-Certified WBE, we help shippers navigate the complexities of LTL by combining cutting-edge technology with a proactive, consultative approach. Our freight experts ensure you get the best rates, fewer surprises, and reliable delivery performance every time.
Leveraging deep industry expertise and a cloud-based platform, Wicker Park offers a full suite of transportation services across truckload, intermodal, USPS/parcel, LTL, flatbed, hot-shot, expedited, etc., with end-to-end visibility into every shipment. Contact us today for a quick quote.
