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Partial truck loading (PTL) is a road freight service for goods which do not need capacity of the entire truck. In general, when goods are too bulky to be sent through a courier service, PTL turns out to be a cost-effective and efficient solution.
In PTL shipping, two or more companies share the truck load and accordingly pay for the logistics cost. In other words, the transportation charges are shared amongst shippers and each shipper only pays for the space occupied by them.
For MSME businesses, PTL services work out more economical than full truckload (FTL) services. However, PTL is not without its own set of challenges. This article will talk about the various PTL opportunities, PTL challenges in logistics that you might have to deal with, and how PTL pricing strategy works.
Opportunities with Partial Truckload services
Here is how PTL can bring opportunities for your business.
Consistent pricing:
Shippers dealing with full truck load (FTL) know that shipment is classified into different classes depending on the type of product. This means that transporting fragile products is costlier than non-fragile products.
However, PTL pricing strategy may or may not have such classification of shipments. Pricing is usually consistent and as a shipper, you pay only for the load/space you will occupy within the truck.
Hence, it gives you an opportunity to save on logistics cost. A third option, less than truck load (LTL) might be a cheaper option, however, delivery timelines cannot be guaranteed as the truck will stop at multiple locations as compared to PTL.
As such, based on your requirements, choose between FTL, PTL and LTL services for your transportation needs.
Customer satisfaction:
Earlier, companies had to wait to ship enough orders to fill a whole truck. This delayed deliveries to customers. Though order for these goods were already received, it was not viable to ship them and hence took up additional storage and warehousing space.
With PTL shipping, you no longer have to wait for delivering full truck shipment. You can book required space in a truck and get going with your order. As a result, your deliveries happen faster, helping you achieve better customer satisfaction. Happier customer translates into more business and leads to growth.
Convenience:
PTL gives you flexibility to schedule just in time pick-up and deliveries. This works best for companies that need to move goods from their branches located at different locations.
You can schedule a pick-up once the goods are ready to be dispatched and get it quickly moved to the desired location. Such flexibility can enable smoother operations for your business.
Challenges of PTL shipping in India
Here are challenges of PTL shipping.
Transit time in PTL is uncertain:
Although it is faster to ship your products through PTL shipping, uncertain transit time of PTL can be a challenge. Since you are not only company to use the truck space, the shipment does not leave your facility and directly heads to the delivery location. Instead, there might be other halts, either for pick up and deliveries for other shippers. Hence, it is difficult to predict the transit time which in turn affects the delivery time.
PTL is complex:
PTL involves 2 or more shippers’ products at a time. Hence, PTL is complex, and requires some amount of planning. While booking, all parties need to specify correct dimensions and quantities of their shipments. Depending on the specifications provided, the carrier company arranges for the truck that can accommodate all shipments. Any miscommunication here can lead to errors and troubles.
In general, volumetric weight calculation for logistics is considered for PTL shipping Meaning charges applicable for the shipment are not calculated on the basis of the gross weight. Instead, the costing is calculated on the basis of following formula:
Length x Width x Height (cm) / 5000
For example: If your load is about 100 cm (L) x 100 cm (W) x 90 cm (H) in dimensions, then, the volumetric weight of your shipment comes to 180 kg. Your logistics partner will charge you accordingly and on the gross weight of your shipment.
PTL pricing comparison
Full truck load (FTL), Partial truckload (PTL) and Less than truck load (LTL) are some of the common options you have to move your goods.
Here is a price and delivery timelines comparison between PTL, FTL and LTL for better under understanding:
| FTL | PTL | LTL | |
| Overall pricing | More expensive than PTL and LTL | Cost effective when you do not have goods worth the full truck load to ship | Most cost effective though delivery timelines cannot be guaranteed due to multiple stops |
| Goods classification | Goods classification is done before loading and pricing set depending on the type of goods | No goods classification is done and load is calculated using volumetric weight | No goods classification is done |
| Delivery timelines | Delivery timeline can be accurately predicted | Delivery timeline window can be predicted with fewer stops | Delivery timelines is usually longer due to multiple stops |
To sum up
As mentioned above PTL has its own pros and cons. You need select the right option for your business. Today, there are several logistics services companies that offer PTL solutions considering its benefits and market demand.
Here are some of the tips that might help you choose right option.
- If goods to be shipped match the full truck load, you choose FTL. It is the fastest option.
- If the load to be transported is about half the truck load or less, PTL can be the preferred option.
- If the goods to be transported are even lesser than PTL then, LTL would make a better sense.
In addition to the load, you also need to consider your delivery commitments to the customer and pricing.
