Simply put, pool consolidation is the practice of combining a number of a company’s smaller shipments into truckload shipments headed to a particular region.

The benefits fall into four general categories:

1. Improve delivery times – By combining your shipments into a single truckload, you enable your freight to travel non-stop. It’s usually ready for off-loading the day after it reaches the destination terminal. LTL shipments via common carrier generally take at least one to four days longer.

2. Reduce lost and/or damaged goods – Because there is less handling involved, your packages arrive in much better condition – not scratched, bent or damaged.

3. Enhanced control – Since your shipment does not go through “break bulk” locations, you’ll be better informed about where your shipment is and when it will arrive.

4. Reduce freight costs – Pool consolidation is based on short-haul instead of long-haul rates and uses smaller niche carriers, so you pay less. At 4 Way, we regularly save our customers as much as 70 percent of their LTL rates by using pool consolidation.

There are many types of carriers and transportation options in the market today. No longer can you just give you shipment to the carrier with the best discount or rate and trust you have the best deal. In order to get the best deal, knowing your shipment parameters are essential. Elements that go into determining the best carrier and cost for a shipment include:

¨      Size, actual dimensions of boxes or pallets

¨      Weight of the shipment

¨      Is the load palletized

¨      What is the transit time required

¨      Is a lift gate required for pick up or delivery

¨      Is there a residential pick up or delivery required

¨      Is this a hazardous materials shipment

¨      What is the size of equipment required

¨      Is this a job site delivery

¨      Is an inside pick up or delivery

Many shipments can be moved more economically on a “contract” carrier than a “common” carrier. Using a Freight Management company who knows how to take full advantage of these options is critical in these economic times and saves you time and money finding solutions to these situations.

Common Carriers (LTL carriers) commonly use a system of pricing that accounts for weight, as well as density, volume and distance. Dimensional weight is a standard formula used throughout the freight industry that considers a package’s density when determining charges. Transportation charges are based on the gross weight of the shipment or the dimensional weight of the shipment; whichever is greater. Simply put, dimensional weight is when the weight of a package is inappropriately less than the actual size of the package. Example: A 10,000 pound shipment of ball bearings takes up less space in a trailer than does 10,000 pounds of ping pong balls!

The carrier defines a business as a location that opens and closes to the general public at set times each day in normal business areas. Due to carriers ability to make timely deliveries, that have additional charges for Limited Access or Non Commercial Pick Ups or Deliveries. Areas considered to have Limited Access include:

• Mini Storage units
• Construction Sites
• Fairs or Carnivals
• Prisons
• Military Bases / Installations
• Mine Sites

 Areas considered to be Non Commercial include:

• Private Residences / Apartment Complexes
• Some Schools (especially without receiving docks)
• Churches
• Camps
• Dormitories
• Business conducted from residences

If the driver is required to go inside (beyond the front door or loading dock) to pickup or deliver a load instead of remaining on the dock or in his truck, additional fees may be applied. When the shipping or receiving address does not have a loading dock, manual loading or unloading is necessary. A lift-gate is a platform at the back of the truck that can raise and lower a shipment from the ground to the truck. Additional fees may apply for this service.

LTL carriers have add-on charges or accessorials for any “special services” that they provide. Anything beyond a simple dock pick-up and dock delivery is considered “special” for LTL carriers. These extra charges are commonly called accessorial charges. All carriers have these published in their “Rules” tariff which can be from 20 to 200 pages. Some common examples of these would be:

• Lift Gate Pick Up or Delivery
• Residential Pick Up or Delivery
• Inside Pick Up or Delivery
• Appointment Notification Prior to Pick Up or Delivery
• Sort and Segregation by Driver
• Hazardous Materials Fee
• Delay Time
• Reconsigment
• Convention or Trade Show Deliveries
• Non Commercial & Job Site Deliveries
• Boarder Crossing Fees
• Re-Weigh and Re-Classification
• Billing Change (especially when proper BOL not used)

Make sure you know about these before you get your quote or you may be in for a surprise when you get your bill from a carrier.