Defining Premium LTL Service
More than 25 years after Federal Express introduced the first overnight delivery guarantee, the nation’s less-than-truckload general freight carriers have begun to offer a variety of premium services.
For shippers, the multi-tiered service offerings present a new and potentially confusing array of transportation choices. Not all guarantees provide 100% refunds, for instance, and there are important restrictions on some services. With surcharges of up to 35% over standard LTL rates, it is important for shippers to know what they are getting for their money.
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Terms such as “Exact Express,” “American Flyer” and “SureTime” have entered the vernacular of LTL shipping as carriers race to meet the demands of shippers to move freight faster and in a more predictable manner.
The emergence of expedited and guaranteed delivery services in the LTL industry is a welcome change. For a long time, LTL carriers failed to understand the value of guaranteed services. Not only are many shippers willing to pay a premium for guaranteed service, many LTL carriers have found they can provide the service without increasing operating costs, and that helps their bottom lines.
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