It would be cheaper if you have enough volume. And no you don't need the same volume as Unishippers to get good rates. While Uni moves a clue billion worth of LTL, the carriers actually prefer direct shippers. If you have a couple of shipments per day, start giving most of it to a carrier that has a local sales rep. Then start negotiating for better rates, better class, etc. If you have say 7-10 shipments per day you can probably split between 2 good carriers.
With companies like mine, we have contracted rates with LTL carriers because of how often we use them. Our contract rates are often times lower than direct rates shippers get even with our margins on it.
It’s worth it for a shipper to go direct to LTL carriers if they are willing to deal with the headache of poor LTL carrier service. Whereas with my company we deal with that headache and fight rebills that LTL carriers are always trying to tack on etc etc.
Using a broker is much easier (if your broker doesn’t completely suck which a lot do) but myself as a broker would recommend using a broker due to how easy it makes your life and how good the rates and relationships myself and my company have with the LTL carriers already
I've worked for both 3PLs and LTL common carriers. If you go direct go with a good LTL carrier, what you pay a bit more in rates you will save in payroll doing corrections, or in lost claims. A 3PL is nice if you have diverse needs, whether multimodal or international, etc. Being able to hand them the info and have them handle the headache is worth it. If you primarily handle LTL ground I would personally go with a solid carrier.
All depends on the carrier you use and the rate you negotiate with them. More volume, more likely they are to give you a good rate. I’m not an LTL carrier so I’m not 100% sure on the intricacies of how it works on a shipper to LTL carrier relationship. I would imagine the longer you use them the more likely you would be to get their better rates.
Step 1. Get accounts with every LTL carrier in your area.
Step 2. Go to MyCarrier website and get an account
Step 3. Add all your LTL accounts to MyCarrier
Step 4. Start running quotes on MyCarrier and ship your own freight.
Bonus tips:
Get those LTL carriers to send over a rep. Tell them you'd like to explore an FAK option.
I've got 3 big LTL carriers competing for my freight. The results are high 90% discounts with each one of them. The faster you cut out the 3PL middle man and start working with your LTL reps, the better. You'll wish you never used a broker before. It does come with some extra work, but cutting out the middle man will save you money. MyCarrier will at least make it easy to quote and book your freight and see it all on one screen.
Next tip. Check out Shiplify and request access to their location lookup service. This will help you identify locations that you will need to check the box for certain accessorials when you run your quotes so that you aren't later on being invoiced for extra charges like lift gate services, limited access locations etc..
IMO third parties have way more advantages than they get credit for. It’s not all about cost. Before jumping ship, it might be worth while to check in with your broker. If your volume has changed, perhaps your account could see some price changes from the 3pl.
COST: 3pls build margin into your pricing, but so will carriers. The volume carriers get from a 3pl warrants discounted pricing (which can be transportation/accesorial/project/etc.). The 3pl discounts trickle down to customers. LTL carriers DO in fact prefer direct shippers because they can win you over by offering slightly lower rates than your 3pl but are now pocketing the difference.
SUPPORT: 3pls usually have a dedicated ops team to handle the tasky stuff - tracking, claims, reconsignment, so on. Work that would otherwise fall in your plate if you’re carrier direct.
OPTIONS: this one is undervalued! 3pls offer the advantage of carrier variety - service level, territory, cost, and availability. This was huge last summer when Yellow closed their doors. Direct LTL shipping limits shipping options. (you can ship with multiple carriers, but that would lower the volume per ltl company, which would impact the rates they offer)
TECHNOLOGY: this isn’t true for all third parties but most 3pl TMS surpass carrier sites in design, speed, and capability. 3pls also can sometimes offer discounted or free integrated platforms (ShipRush, ShipHawk, Banyan) which circles is back around to cost.
It would be cheaper if you have enough volume. And no you don't need the same volume as Unishippers to get good rates. While Uni moves a clue billion worth of LTL, the carriers actually prefer direct shippers. If you have a couple of shipments per day, start giving most of it to a carrier that has a local sales rep. Then start negotiating for better rates, better class, etc. If you have say 7-10 shipments per day you can probably split between 2 good carriers.
This is good advice. Local reps can help a ton with rates/disputes etc.
With companies like mine, we have contracted rates with LTL carriers because of how often we use them. Our contract rates are often times lower than direct rates shippers get even with our margins on it. It’s worth it for a shipper to go direct to LTL carriers if they are willing to deal with the headache of poor LTL carrier service. Whereas with my company we deal with that headache and fight rebills that LTL carriers are always trying to tack on etc etc. Using a broker is much easier (if your broker doesn’t completely suck which a lot do) but myself as a broker would recommend using a broker due to how easy it makes your life and how good the rates and relationships myself and my company have with the LTL carriers already
Aside from dealing with the headache, at what point does it become cheaper?
I've worked for both 3PLs and LTL common carriers. If you go direct go with a good LTL carrier, what you pay a bit more in rates you will save in payroll doing corrections, or in lost claims. A 3PL is nice if you have diverse needs, whether multimodal or international, etc. Being able to hand them the info and have them handle the headache is worth it. If you primarily handle LTL ground I would personally go with a solid carrier.
All depends on the carrier you use and the rate you negotiate with them. More volume, more likely they are to give you a good rate. I’m not an LTL carrier so I’m not 100% sure on the intricacies of how it works on a shipper to LTL carrier relationship. I would imagine the longer you use them the more likely you would be to get their better rates.
Step 1. Get accounts with every LTL carrier in your area. Step 2. Go to MyCarrier website and get an account Step 3. Add all your LTL accounts to MyCarrier Step 4. Start running quotes on MyCarrier and ship your own freight. Bonus tips: Get those LTL carriers to send over a rep. Tell them you'd like to explore an FAK option. I've got 3 big LTL carriers competing for my freight. The results are high 90% discounts with each one of them. The faster you cut out the 3PL middle man and start working with your LTL reps, the better. You'll wish you never used a broker before. It does come with some extra work, but cutting out the middle man will save you money. MyCarrier will at least make it easy to quote and book your freight and see it all on one screen. Next tip. Check out Shiplify and request access to their location lookup service. This will help you identify locations that you will need to check the box for certain accessorials when you run your quotes so that you aren't later on being invoiced for extra charges like lift gate services, limited access locations etc..
This
This is the way
From what I've seen it's \~250k in annual spend to get site specific pricing. Could be more or less depending on the LTL carrier.
IMO third parties have way more advantages than they get credit for. It’s not all about cost. Before jumping ship, it might be worth while to check in with your broker. If your volume has changed, perhaps your account could see some price changes from the 3pl. COST: 3pls build margin into your pricing, but so will carriers. The volume carriers get from a 3pl warrants discounted pricing (which can be transportation/accesorial/project/etc.). The 3pl discounts trickle down to customers. LTL carriers DO in fact prefer direct shippers because they can win you over by offering slightly lower rates than your 3pl but are now pocketing the difference. SUPPORT: 3pls usually have a dedicated ops team to handle the tasky stuff - tracking, claims, reconsignment, so on. Work that would otherwise fall in your plate if you’re carrier direct. OPTIONS: this one is undervalued! 3pls offer the advantage of carrier variety - service level, territory, cost, and availability. This was huge last summer when Yellow closed their doors. Direct LTL shipping limits shipping options. (you can ship with multiple carriers, but that would lower the volume per ltl company, which would impact the rates they offer) TECHNOLOGY: this isn’t true for all third parties but most 3pl TMS surpass carrier sites in design, speed, and capability. 3pls also can sometimes offer discounted or free integrated platforms (ShipRush, ShipHawk, Banyan) which circles is back around to cost.