Less-Than-Truckload Logistics 101: Q&A with LTL Expert Reo Hatfield

Less-than-truckload logistics (LTL) plays a key role in distribution, but many professionals who work with logistics partners are not aware of every benefit this partnership can bring. To help shippers understand the ins and outs of LTL, we sat down with Reo Hatfield, LTL expert and Vice President of Business Development at TA Services.

A renowned leader in the logistics industry, Reo has over 40 years of experience in executive management and transportation logistics. Under Reo’s leadership, Reo Distribution won Logistics Broker of the Year by the National Association of Small Trucking Companies in 2014, and, notably, Reo is also famous for writing the truce that ended the notorious Hatfield-McCoy feud in 2003. But that’s a story for another day.

Q: First off, can you define LTL for us?

A: Less-than-load, or less-than-truckload, is useful when a shipper needs to transport relatively small loads of freight. Essentially, our LTL customers need to get their products from point A to point B but can’t use a full truckload because: 1) full shipment is too expensive, or 2) it isn’t budget- or space-efficient to store extra product. For example, a customer of a large TV manufacturer can only sell and store up to 10 TVs at a time. LTL allows this customer to have a cost-efficient solution that fits their unique needs. The bottom line: LTL allows for shipping only what the shipper needs to meet their business goals.

Q: What trends are you seeing in LTL?

A: Over the past few years, online shopping has drastically increased the need for LTL. With the onset of one- or two-day shipping with Amazon, it’s increased demand to deliver freight quicker, at a higher volume. This trend grew during the pandemic, with more people staying home and ordering essentials for speedy delivery. People expect their delivery to be trackable as well, so the technology behind LTL is becoming even more fine-tuned—down to the hour.

Q: What are some misconceptions about LTL?

A: A common misconception is that if you need a last-minute delivery and/or an expedited shipment that it will be coming via air. Many freight shipments won’t fit on an aircraft, and sometimes it’s easier and faster to drive a shipment from its origin to its destination, rather than fly it.
Another misconception is that LTL shipments need to be very small. We’ve worked with shippers who have 12,000-pound shipments, but it makes more financial sense to split it into two LTL shipments over two days. That way you get the product there when they want it, and at the same time, you’ve circumvented the cost of a full truckload.

Q: Who can benefit from using LTL?

A: The bottom line is, every type of business can benefit from using LTL, whether shipping TVs, paper, or bottles of ketchup. Most companies who use full truckload are also going to find a need to use LTL. Regardless of the size of a company, having customers who ship at smaller quantities is especially valuable, perhaps even more than a customer with large-volume shipments. For companies across a variety of industries, it’s important to have reliable logistics partners who can help determine the best way to ship your freight.

Q: Why should a shipper choose LTL over traditional full truckload?

A: As our industry evolves, it’s gotten easier to efficiently move freight and track in real-time. With the innovative technology behind LTL, a shipment can be tracked as it gets scanned from facility to facility, whether the shipment is early or on-time. The technology isn’t just convenient for shippers. It also allows for real-time inventory updates for manufacturers and distributors. For instance, say you’ve sold 10 mattresses; the system will know to order 10 more mattresses from the distribution center via the LTL technology update or alert.

Learn More About LTL and How it Can Benefit Your Operation

TA Services has been America’s trusted, premier integrated solutions provider for Freight Brokerage, Managed Transportation, Warehousing & Fulfillment, and Cross-Border Logistics for over 35 years. If you are interested in how TA Services can help you increase efficiency and reduce cost, then please fill out this contact form or email us today.