Packing It In: Why Freight Density Matters in LTL Shipping

When loading up your car for a long beach getaway, you probably don’t throw your luggage, towels, chairs, and other supplies into the trunk at random. Instead, you pack them closely together so that you can fit the most amount of equipment in the trunk as possible. Maybe you even tear a rotator cuff trying to get the umbrella in the perfect spot.

What you’re optimizing in this situation is freight density or the amount of cargo per unit of space. And just as it matters when packing your trunk, so does it matter in LTL freight shipping when packing their trucks.

Here’s why.

Density Affects Carrier Costs

LTL carriers want to haul the most freight per trip possible to reduce the number of trips and their associated costs. Consider, for instance, the amount saved on gas and wages when two shipping trips are combined into one.

As such, carriers try to maximize cube utilization, or the amount of available storage space filled in a given truckload. The denser the freight, the better the cube utilization and the less space wasted. Less wasted space means less wasted money.

Density Affects Shipper Costs

Since density matters for carrier costs, carriers use pricing systems to incentivize shippers to pack their freight as densely as possible.

Lower-density shipments receive higher shipping classification according to The National Motor Freight Traffic Association (NMFTA), which provides shippers with standardized prices for shipments when working across carriers. The higher the freight class, the higher the cost to ship.

Let’s review this in flow-chart form.

Lower Density -> Higher Freight Classification -> Greater Cost

Higher Density -> Lower Freight Classification -> Smaller Cost

You should note that density serves as one of several factors that determines freight class (and consequently freight rates). These other factors include storage convenience, ease of handling, and liability. However, density exerts the greatest influence on classification.

Determining Density

Since density is cost-sensitive in the LTL shipping world, you’ll want to make sure you use a reliable scale and take accurate measurements when determining this metric. It may not seem like much, but a small error could make the difference between the right freight classification and a far more expensive one.

Also, make sure to account for packaging when measuring the density of your shipment, as carriers will consider packaging as part of your total load.