The Pros of Parcel Hundredweight (CWT) Programs

Freight Cowboy — Fri, 05 Apr 2019 09:00:54 +0000

With so many shipment options available, most shippers have a difficult time determining which program to use for freight shipments. This is because Less-Than-Truckload (LTL) and hundredweight (CWT) programs both have many advantages and disadvantages. In the coming weeks, we will be exploring the pros and cons of both LTL and CWT programs in our blog posts. For now, let’s take a look at the many advantages of parcel carriers’ hundredweight programs.

What Are the Advantages of CWT Programs?

There are numerous factors to consider when selecting the best freight shipping program for your unique needs. Parcel Hundredweight programs may be the right choice for you if you’re looking for an inexpensive option with less complex requirements.

If you’re stuck between shipping options, consider the advantages of CWT programs!
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Less Operational Handling Requirements
Cost-Effective
Class Specification is not Mandatory

1) Less Operational Handling Requirements

When it comes to palletizing, shrink-wrapping, staging, or shipment segregation, there are far less operational handling requirements. In most instances, these shipments are handled along the same “line” as the shipper’s regular parcel shipping. Contrastly, transporting freight using LTL may be part of more cumbersome shipping “line.”

2) Cost-Effective

Furthermore, CWT is more cost-effective. This method offers an instantaneous decrease in price as there are no pallets to purchase, and consequently, the weight of the pallets would not influence the calculation of your transportation rate.

CWT fuel surcharges are also way less than LTL. For example, the February 6, 2017, UPS Freight (LTL) fuel surcharge is 21.4%, compared to only 5.5% for UPS Ground. Many of the typical accessorial charges that are applied when shipping via LTL — such as liftgate and inside delivery — are not applicable when shipping CWT.

3) Class Specification is not Mandatory

There is an advantage to not having to decide the class for each package or the entire shipment, considering many shippers have various commodities.

Pro Tip: It’s quite convenient that the class specification is not a prerequisite to ship CWT.

Particularly when taking into account outer zone shipments. Minimum charges for LTL carriers are more than those of parcel hundredweight programs, as the charges for the equivalent destination state for the LTL carrier may be much greater the further from the final destination.

Moreover, an important consideration to parcel incentive is the volume tendered under these CWT programs.

Conclusion

There are many benefits for shippers that choose to use CWT programs. From the minimum handling requirements to the lower costs, this may be the best option for you. However, we will be reviewing the disadvantages of hundredweight programs, along with the pros and cons of LTL programs in the coming weeks. Check in for the next article!

Would you like to learn more about the pros and cons of shipping programs? Chat with our team of freight shipping experts today!