Evolving LTL Shipping and WARP’s Approach on Per-Pallet Rates to Change the Game

At WARP, we don’t care about class pricing.

We do per-pallet-rate pricing.

As logistics professionals, we know that flexibility, visibility, and efficiency are crucial for success. 

At WARP, we're revolutionizing the industry by addressing the challenges that traditional systems have struggled to overcome. Our per-pallet-rate pricing model is designed to meet the specific needs of modern supply chains, providing tailored solutions that streamline operations and reduce costs.

But to understand where we’re headed, it’s important to look back at where we’ve come from. 

The story of class pricing in LTL shipping begins with the Motor Carrier Act of 1935, a game-changer that brought federal regulation to the trucking industry. This act introduced a system to classify freight based on four main characteristics: density, stowability, handling, and liability. Each class, from 50 to 500, helped determine the cost of shipping, making pricing more predictable for everyone involved.

In its early years, this system brought much-needed structure to a burgeoning industry. By categorizing shipments into distinct classes, it enabled shippers and carriers to streamline operations, predict costs, and maintain consistency in pricing. The National Motor Freight Traffic Association developed the National Motor Freight Classification system, ensuring uniform classification across the industry. This was crucial for managing the increasing volume and variety of freight.

But as the market grew and changed, the cracks in this old system started to show. 

Shippers dealing with diverse and dynamic markets found the system inflexible. Shippers needed more flexibility, better visibility, and increased efficiency. 

The rigid class pricing model struggled to keep up, especially with the rise of e-commerce and the demand for faster deliveries. The need for more nuanced pricing, greater transparency, and enhanced efficiency became increasingly apparent. It became clear that a new approach was needed.

Chat with us here to learn more about WARP’s LTL solution: https://www.wearewarp.com/contact-us

By
WARP

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