Optimization and constant improvement of processes are crucial in the logistics industry. Even slight improvements can lead to a competitive advantage.
Freight density is commonly considered a simple technical detail. However, getting the freight density right should not be underestimated as a way to optimize supply chains. It can influence how your shipment is priced by carriers and help cut certain costs.
Getting your freight density right means a reduction of wasted capacity, fewer disputes, and a minimal chance of unexpected fees. Let’s dive into the topic of why freight density matters and how to improve it.
By having accurate freight density, carriers get the data they need to plan cube utilization, mix of freight, and load building efficiently. This leads to optimal pricing of shipments and fully utilized trailers—a win-win situation for both carriers and shippers. Carriers can reduce delays, plan routes more effectively, and maximize load efficiency, while shippers benefit from fair pricing and predictable costs.
Carriers prefer to partner with businesses that provide consistent and accurate shipment data, as reliable density and weight information supports LTL pricing models, improves invoice accuracy, and feeds carrier scorecards that track performance and compliance. That’s paramount in today’s data-driven supply chains.
Building trust and transparency leads to better efficiency and improved pricing. Optimizing every process in the supply chain is crucial, as even small inefficiencies can accumulate and trigger a domino effect. For both carriers and shippers, maintaining accurate freight density should be a top priority.
Freight density plays a big role in small and medium-sized shipments. This is the so-called less-than-truckload (LTL) shipping. Freight classes are primarily determined by density and weight in these shipments. Compact and dense shipments receive a lower rate and a lower class compared to bulky items (even lightweight ones).
That’s because carriers are primarily concerned with space rather than weight. As such, efficient packaging and optimal density are very important. Shippers need to streamline their packaging operations and work towards minimizing the size of their packages.
Miscalculations can result in unexpected fees and other consequences. Most carriers have a reweighting procedure implemented to reduce the risk of density miscalculation. This can lead to discrepancies if shippers have submitted incorrect data. In addition to changing the freight class and rate, carriers can charge reclassification fees. Delivery delays are also possible, which can cause a financial burden for both carriers and shippers.
Today’s supply chains rely on data to make sound decisions. Repeated miscalculations can not only lead to higher rates and additional fees but also damage credibility. As miscalculated freight density can disrupt planning, waste space, and lead to delays, carriers prefer to partner with shippers that are trustworthy and reliable.
There are various ways to collect freight density data accurately. Luckily, modern transportation management systems and other solutions offer tools to simplify the process. With a reliable TMS—like ShipperGuide—manual entry errors are reduced, and commodity-level density tracking can be automated, making shipment density calculations easier and more precise. Here are a few strategies to accurately measure freight density.
Freight density is one of the many technical details in supply chains and logistics. Underestimating it can lead to additional costs and poor collaboration with carriers. Allow us to briefly answer some of the commonly asked questions on this topic.
Freight density is the weight of a shipment divided by its volume. The formula for calculating freight density is very simple: freight density = weight/volume. Carriers use this metric to determine the freight class and shipping rate. Higher density means lower cost per pound as space is used optimally.
Although it’s easy to calculate the weight of irregular shipments, measuring their size is trickier. Usually, carriers calculate the volume by getting the maximum height, width, and length of shipments.
Once you have that number, you can easily calculate the freight density by dividing the weight by the volume. When it comes to irregular shipments, certain discrepancies in densities are expected. That’s why shippers might choose to round up to a higher number to avoid underreporting.
Yes, in fact, carriers usually weigh their shipments again to confirm their density. If a shipper has submitted inaccurate data, the result might be a reclassification penalty, rate adjustment, and delays.
In addition to automating calculations of freight density, ShipperGuide can offer logistical businesses a variety of solutions. Request a demo and find out how you can optimize your shipping operations with ShipperGuide TMS!