Welcome

LTL 101 Training

The purpose of this course is to certify USA Transportation Logistics

LLC agents and staff members in the LTL product.

We hope you find this course informational, however if you would like

any additional information on any of the topics reviewed, please reach

out to USA Transportation Logistics LLC - LTL Department.

Understanding LTL

Classifying LTL

Quoting LTL

Volume LTL (Partial TL)

Managing LTL

USA Transportation Logistics LLC LTL Program

Certificate of Completion

Understanding LTL

In this first section “Understanding LTL” we will cover the

basics of Less Than Truckload freight. More specifically, how it

differs from traditional Truckload in both operations and

pricing.

The LTL trucking industry is made up of

specialized carriers that operate a

consolidation network of local city

drivers, long-haul drivers, freight

terminals, and Distribution Centers.

LTL Carriers

LTL City Operations

At a local level, city drivers service specific routes, picking up and

dropping off freight at different customer locations. Those

shipments are then brought back to a city terminal and consolidated

for long haul.

LTL Line Haul Operations

Once freight has arrived back at local terminals, freight is cross-docked

to Line haul trailers and sent to regional or National hubs, often called

Break-bulk or Distribution Centers. This process is very similar to the

hub and spoke system used by airlines

Consolidated Freight Due to this consolidated freight

approach, it is vital to understand how

freight will load with other freight.

Contrary to Truckload where you are

afforded the space of the entire truck,

LTL freight is essentially based on the

weight and space a specific shipment is

utilizing.As you can see, shipping a

1000 pounds of baseballs is

certainly not the same as a

1000 pounds of basketballs.

Due to the complexity of all

the different types of items that

need to be transported via LTL

service, a pricing (or

classification) method is

required to create a common

platform to rate LTL

Shipments.

The classification system most widely used in LTL is the

NMFC guide which is compiled and maintained by the

National Motor Freight Traffic Association, a third party

organization. The NMFC guide assigns a dedicated to

class to most anything that can be sent via common

carrier.

Freight classes range from 50 to 500. The lower the

freight class, the lower the freight rate will be.

Freight Class

The NMFC guide considers four main components when determining freight class:

Density (The combined weight and space utilized)

Stowability (How well a shipment will consolidate with other freight)

Handling (How easy and quickly can the freight be moved)

And Liability (How susceptible a shipment is to damage and the

value of replacing that shipment should it be damaged)

Fed-Ex Calculator (Easy) https://smallbusiness.fedex.com/freight-

classification.html

Our example from the previous slide highlights the need for different

rating classification for different commodities. The smaller, heavier

baseballs are class 85. The lighter, larger basketballs are class 200. We

will discuss how rate affects price in the next module.

Freight Class

In this section, we will take a closer look at identifying correct LTL

classification.

Classifying LTL

Jacksonville, FL to Norfolk, VA

720 lb. shipment

How Class Affects Cost

In the previous section we reviewed the basics of freight classification.

Now we will review how class directly affects the cost of a shipment

All factors equal in lane and weight, we can see how a shipment’s price

changes drastically through each class. So it is very important to

correctly classify each shipment to secure an accurate LTL rate.

Your Customer/Shipper should know the class and the weight. If you

need to find it on your own, you can use Fed-Ex LTL Freight

Locating Commodities in NMFC

When reviewing the NMFC guide, you may find that some commodities

have their own specific item number. In this example, wooden pencils in

boxes have a designated NMFC item #. Just be sure to read the entire

description to confirm the item describes the commodity as shipped.

Commodities with Pre-Determined Class

Item 179050

Lead Pencils wooden, other

than mechanical or ball point,

in boxes.

Other NFMC classifications

are

dependent upon how the

commodity is tendered for

shipping. The difference

between Set up and knocked

down applies to products that

could be assembled.

Class Based on Packaging

As an example, this chair is fully assembled or Set Up and Strapped in a

Pallet.

If the chair was unassembled and shipped in a condensed form it would be

considered “Knocked Down.”

Crated implies the shipment is completely protected by heavy

crating and cannot be easily damaged in transit.

Shipping items “loose” implies individual pieces with no central

handling piece such as these individual cases.

The term “Nested” refers to products that can be stacked inside each other,

such as these buckets.

In this slide we have an example NMFC item with multiple sub

classes depending on how the freight is tendered and packaged.

First, we identify racks under this item number can be wire or made of

steel, wire combined, or wooden.

Wire racks cannot be knocked down or made smaller, so all sub classes

are based on the racks as Set UP or fully assembled.

However there are different classes based on # of units and Nested

(stacked inside one another) or in some way interlaced

Racks made of metal, or heavier materials are likely to weight more

than wire racks and may be disassembled when shipped. Therefore

these products are broken down into Set up Or Knocked down

categories.

Determining class on Packaging

LTL Classification can also be dependent upon a commodity’s value.

Release value classifications usually apply on high value items such as

electronics.

Class on Release Value

However other items such as costume jewelry can also be subject to

release value rules. In this example, jewelry with a value not exceeding

a dollar per pound is class 100. Therefore it is important to ask your

customer what is the wholesale value of the product.

Always indicate the released value of the product clearly on the bill of

lading when the commodity is dependent upon this factor for

classification.

A shipment’s combined weight and space is typically the most frequent

determining factor in the NMFC guide. Density-based commodities

require the shipper to obtain the density or Pounds Per Cubic Foot of a

shipment to identify the correct class.

The basic calculation of density is the weight divided by the space or

cube of a given object.

To calculate the density of a shipment, first determine the weight. Next,

capture dimensions and multiple the total shipping dimensions to figure

the cube. If dimensions are given in inches, divide by the number 1728 to

obtain the cubic feet. Lastly, divide the total weight by the Cubic feet.

This will give you the Pounds per cubic foot needed to identify shipping

class.

How to Calculate Density

When reviewing the NMFC description, you will indicate the class for which

your density falls in line. In this example of plastic water bottles, if the shipment

PCF was 4.5 then the freight class would be Sub 04, class 150.

Density commodities are very common in

products made from the same type of

material but vastly different shapes and

weight.

Density Commodities

Since density may be a critical factor in classification, always ensure the

accurate shipping dimensions are captured. If the freight is hanging out over

the pallet, those additional inches will need to be captured in the total. If the

item is smaller than the pallet, then the additional inches for the pallet space

must be included. As you can see in this example, even a small variance in

measurement could change the freight class.

Correct Shipping Dimension

Researching Freight Class

Finding a Freight Class:

• Reach out to Shipper

• Use Fed-Ex Calculator

• Call LTL Carrier

Helpful questions to ask your customer:

What type of commodity is being shipped?

What is it made of?

What industry is it used for?

How is the freight packaged?

Is the item fully assembled?

Are the items nested inside each other?

Is this item high value or have a specific release value.

What are the shipping dimensions and weight?

In this section will cover the additional factors that contribute to an accurate LTL

rate in the LTL Module of our Dispatch Software.

Quoting LTL

An LTL quote is comprised of four main standards. The shipping lane,

freight class, weight and accessorials. It is important to remember that a

quote is only as "good" as the information provided. If anything changes

with commodity or required services, the rate will also change.

Accurate Quoting

Similar to Truckload, carriers will

expect to be compensated for any

additional time or services

performed. Anything other than a

“Dock To Dock” shipment may

have an associated accessorial

applied.

Understanding LTL

If a customer does not have a loading dock or an available

forklift, it should be identified how the freight will be loaded or

offloaded. The freight may be light enough to offload by hand or

the customer may need a truck with lift gate or possibly inside

delivery.

Specific commodities that require additional handling or precautions may also

have an applicable accessorial. Hazmat fees compensate the risk in handling

the commodity and co-loading with other products.

Objects that are extreme in length may result in an over length fee due to their

awkward handling characteristics and inability to mingle with standard

palletized freight.

Requesting an appointment on a shipment will also result in an appointment

fee. Appointment freight requires the carrier to hold freight on the dock which

can increase susceptibility to damage and interrupt normal delivery operations.

Commodity Accessorials

Accessorials specific to origin and destination locations may also be

required. If a facility has a gate and/or the driver has to check in with

location personnel, then a Limited Access Fee of some type is usually

applied. Some additional locations may include:

Location Accessorials

Whether your customer needs one or more of these services, just be sure

to ask your customer what the expectations are for successful pick-up

and delivery before the shipment is dispatched.

Shipment Requirements

Volume LTL (Partial TL)

In this section we will review handling LTL shipments that encroach on

full truckload or partial shipments.

When dispatching a large LTL shipment, it is

important to pay attention to the amount of

space you will be utilizing in the trailer.

Typically anything over 12’ will receive punitive

pricing, commonly referred to as “Cubic

Capacity” or “linear Foot” rules. Standard LTL

quotes no longer apply when a shipment absorbs

a large amount of space.

The USA Transportation Logistics LLC LTL system has safeguards or

quote restraints that will attempt to prevent shipments from receiving

potentially incorrect LTL rates by blocking shipments that:

Contain more than 5 Pallets

Weigh more than 5000 lbs. total

Or the dimensions exceed 500 cubic feet

Manual review may still be required for shipment pieces that cannot be

double staked or cannot fit side by side

Large “LTL” Shipments

If you will be utilizing more than 12’ of trailer space that is usually a good

indicator that you will need to secure a spot volume quote from the carrier.

Volume quotes could be considered as the “wholesale price” on a

section of the trailer and safeguards against trailer capacity rules that

could raise your LTL rate significantly.

Volume quotes are based on

the carrier’s current market

needs. This is similar to a

partial truckload in that

capacity needs may fluctuate

and quotes will have an

expiration date.

Although Volume quotes will typically lower your customer’s rate. It is

important to remember, the liability amounts may be lower due to the

wholesale price you are receiving. Often $1.00 per pound regardless of

commodity Also, the transit time may be slower than the carrier’s normal

advertised transit time.

Obtaining Volume Quotes

When contacting a carrier directly for any

type of quote it is always important to

remember to ask for a copy of the quote.

Before dispatching, verify any expiration

dates and confirm the information captured

is correct as you originally provided.

Also it is extremely important that the quote number is on the original BOL

that the driver picks up from the shipper. Some carriers may not honor a

quote after they pick up if it was not included on the original bill of lading.

Documenting Volume Quotes

Successfully managing LTL service

as a 3PL partner extends beyond

pricing. In this section we will

review the additional support

needed to manage LTL freight.Understanding and managing

transit times is a significant

component of successful LTL

operations. It is always prudent

to ask the customer if the freight

needs to arrive by a certain day

or time. t is also important to

know that transit time does not

include the day of pick up,

weekends or holidays.In this example, the Carrier’s

Advertised Transit is 4 days. The

shipment is picked up Wednesday,

September 4th. So the projected

Delivery Date is actually next Tuesday,

September 10th, six calendar days after

pick up.

Managing Transit Times

As referenced on the previous page, LTL carriers provide advertised transit

times on all their shipping lanes. When running a quote, you will be able to

view the transit at that time. If your customer must ensure the shipment arrives

by that advertised transit day, then you will need to book a guaranteed quote.

Standard options like delivery by 5pm

and noon on advertised transit are fairly

routine are available at the time of quote.

Guarantee Transit, Standard Quotes

When booking these quotes, the proper

guarantee quote number and indicators

will print on the BOL created in the

TMS system. In order to honor your

time definite request, it is extremely

important that the shipper use this bill of

lading.

If your customer requires a shorter transit time than advertised, early

morning, or weekend delivery, you should call the carrier to ensure the

service can be performed.

Outside factors such as distance from originating terminal, current road

or weather conditions, and capacity restraints may affect a carrier’s

ability to satisfy certain time definite requests.

Guarantee Transit, Spot Quotes

On occasion an LTL carrier may need to book the

shipment outside their own network using a hotshot

driver, team driver, or even expedited air. Be sure to

request dispatch instructions when activating a time

definite quote that was quoted directly with the

carrier. And as with standard guarantee quotes,

ensure the quote number and indicators are on the

BOL used by the shipper.

Before dispatching an LTL shipment, customers may also inquire on the

carrier’s liability coverage should something happen to their freight.

It is important to know that liability is not the same as insurance.

Liability is the amount a carrier will pay if they determine freight was

damaged while in their care and they are at fault.

Freight Liability Coverage

Liability amounts may vary from Carrier

to Carrier, but are typically based on

class. The lower the freight class, the

lower the liability amounts will be.

If your customer requires additional

Liability coverage, you will need to

quote directly with the carrier. However

be advised, there may be a maximum

allowable amount.

Let’s walk through a quick example:

Shipping a piece of machinery, your customer

would like liability coverage of $1400

Based on the NMFC, you determine the

freight class is class 70

Per the carrier’s liability chart, class 70 is

covered at $5.92 per pound

Multiplying the liability limit times the

weight of the shipment will identify the

total amount available if the carrier

damages the shipment

In this example you would need to contact

the carrier to request a quote with

additional liability coverage of $541.60.

Creating an accurate Bill of

Lading is also essential to

effective LTL Management.

The Bill of Lading given to the

driver is the official document of

the shipment and supports any

quote, special services, or

requirements for the load.

The USA Transportation Logistics

LLC BOL generated from the

system should be provided on all

LTL shipments as it shows USA

Transportation Logistics LLC as

the paying party.

Creating Accurate BOLs

The most accurate bill of Lading

will have the following

information captured:

Once the shipment has been dispatched and delivered, the shipment can

be billed. However, on occasion it may be necessary to dispute a freight

bill on behalf of your customer. Some potential reasons to file a billing

dispute may be:

The invoice was not billed or sent to USA Transportation

Logistics LLC

Additional service charges or accessorials billed

Or The weight and/or the Class was changed

Initiating Carrier Disputes

If the invoice was not billed to USA Transportation Logistics

LLC:

Verify with the carrier if the USA Transportation Logistics LLC BOL

was used by the customer?

If not, provide the carrier with a “Corrected” BOL showing USA

Transportation Logistics LLC as the paying party.

If additional charges or services were

unexpectedly billed, verify if:

The service was warranted,

requested, or required?

If not, provide information

supporting why the service was not

required, including pictures if

applicable

•

If the weight and/or Class was corrected:

Verify if the customer provided the correct

freight info at time of quoting?

It is important to understand almost all carriers

have forklifts with on-board weight scales and

inspectors that insure these weights and

classifications are correct.

If your customer is adamant the information is not

correct, request a copy of the original sales

Purchase Order, Pictures of freight, or other

supporting documentation

Reclassifications or reweighs can sometimes be validated before reaching out

to your customer by simply reviewing the bill of lading imaged by the carrier.

This is the official document of the shipment as it was signed by the driver

and has the carrier PRO sticker attached.

In this example we see that the shipper scratched out the original

weight and piece count, altering the amount that actually shipped.

Next review the Weight and Inspection form imaged on the carrier’s

website. The Weight and Inspection analyst will provide notes regarding

the commodity received with details on the piece count, weight,

dimensions, and full item description.

Review Supporting Documentation

Lastly, managing LTL freight may occasionally involve facilitating a

freight claim. In the event a shipment is damaged, lost in transit, or

delivered short LTL claims are filed directly with the LTL carriers.

The first step is to always notify the carrier as soon as damage or loss is

identified.

Also, it is imperative that customers know to document any damage (no

matter how small or insignificant on the delivery receipt.

The agent will then facilitate the claim process by submitting directly to

the carrier on the customer’s behalf.

The “Owner of the goods” should be listed as the claimant on any claim

form submitted to the carrier. This value of the freight is inclusive of

wholesale replacement values, not retail or anticipated sales price.

Costs to repair and item or ship a replacement can also be included in

total claim and lastly original shipping charges can be included but

must be paid first.

Filing Freight Claims

Now that we have covered some of the basics of LTL, we will review the

USA Transportation Logistics LLC - LTL program and the support that is

available to USA Transportation Logistics LLC agents.

USA Transportation LTL Program

The USA Transportation

Logistics LLC - LTL program is

managed by the LTL

Department Bill Hammond is

the LTL & Intermodal Manager.

Bill serves as the main contact

point for agent support, manage

pricing negotiations and

maintain the carrier

relationships.

The LTL system utilized in the USA Transportation Logistics LLC LTL

module is an online web-based program within our TMS (RTF).

This central location serves as the connection point with the carriers and

our internal USA Transportation Logistics LLC systems. Within the

module you can:

USA Transportation Logistics LLC - LTL System

The LTL rates loaded in the system are

negotiated rates with our approved

carriers that are available to any agent

or customer. The rates are based on the

actual freight class and you may find

some accessorial concessions.

The customers can use any carrier available

and are responsible for classifying and accurately

quoting their own freight. The shipments are

immediately available for them to view and manage.

This is a great option for any agent wanting to reduce

administrative time and increase shipment volumes.

LTL Rates

System Access for Customers

The USA Transportation Logistics LLC - LTL

program is also available for direct customer

access. Customer can quote, book, and trace

their own loads without agent involvement.

The general flow of an LTL shipment begins with:

1. The shipment created and tendered in RTF dispatch software LTL System either by the agent or the customer

2. Next, the carrier electronically provides: Pick up Confirmation, EDI Status updates as the shipment is moving and the signed shipping Documents, and Invoice after delivery

3. Once the documents are visible in the USA Transportation Logistics LLC imaging system, the Agent finalizes the freight bill in the USA Transportation Logistics LLC billing system.

4. And lastly, USA Transportation Logistics LLC corporate pays the carrier, sends an invoice to your customer, and releases agent commission at the same time.

LTL Process

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Congratulations, you have completed the LTL Course!

Email Training for your Certificate of Completion