In Ghana’s rapidly expanding commercial corridors, from the ports of Tema and Takoradi to the manufacturing hub of Accra and Kumasi, businesses are facing an uncomfortable truth: the traditional system for transporting partial truckloads (LTL) is often financially inefficient and operationally fragile.
Many businesses are overpaying for transport because their cargo is too large for parcel carriers, yet insufficient to justify a Full Truckload (FTL). This mid-sized freight, instead of generating expected savings, consistently becomes a source of unpredictable delays and inflated costs.
At Movenaw, we believe the solution is not merely to negotiate lower rates on the old model, but to make a strategic shift to Volume LTL (Partial Truckload) and internal operational discipline. By adopting this advanced logistics framework, we can transform the cost of transport from a passive business expense into a strategic competitive advantage.
1. The LTL Efficiency Trap: Why You Are Overpaying
Traditional LTL transport is designed for freight that does not require the entire space of a truck, typically weighing between 68kg and 6800kg. While this method works well for very small pallets, overpayment for mid-sized cargo (often 6 to 18 pallets or a couple of boxes) occurs for two primary reasons:
- The Pricing Inefficiency: LTL rates are complex, factoring in classification, density, and handling requirements. Carriers enforce Minimum Charge Contracts (MCC), setting a price floor for a shipment regardless of its actual size or distance. If your load falls just under the FTL threshold, you may still be covering a disproportionate share of that fixed cost.
- The Volume LTL Solution: Volume LTL is the critical bridge. This method is designed for larger partial loads (68kg and 6800kg) that exceed typical LTL weight limits. By securing this space through Volume LTL, you are priced based on the space occupied, which leads to significant savings and a far more predictable invoice compared to the complex, punitive structure of standard LTL pricing.
2. The Hidden Cost of Risk: Damage Control as Savings
Cost is not the only factor; the greatest financial liability is the risk of damage. Traditional LTL involves frequent handling and multiple touchpoints – the cargo is often moved around during pickups, deliveries, and transfers. This is particularly risky for sensitive, non-standard freight like high-value commercial goods or household items.
At Movenaw, we mitigate this through uncompromising operational discipline:
- Mandatory Stabilization: We treat all Volume LTL shipments as specialized cargo. Items must be packaged on a sturdy packing base or palletized equivalent to ensure commercial stability. This is critical for preventing shifting that could damage the entire co-mingled load during transit.
- The Zero-Tolerance Refusal Protocol: This control measure is non-negotiable. If our Field Supervisor determines that a shipment requires a necessary accessorial service (such as crating for a fragile item) to travel safely, and the client refuses to purchase that service, the supervisor must refuse to accept the shipment and document the refusal. This protects the integrity of the entire shared truckload and shields all other co-mingled clients from systemic loss caused by one unstable item.
3. The Strategic Fix: Consolidation as a Financial Discipline
To maximize profitability on Volume LTL and consolidated routes (such as the high-volume Accra ↔ Kumasi ↔ Takoradi corridor), companies must adopt a disciplined operational model focused on consolidation:
- The Hub-and-Spoke Model: All partial loads must be routed through a Central Consolidation Warehouse (CCW) or a regional cross-docking facility. This facility acts as the strategic choke point where items are processed, grouped by common destination, and combined into efficient, full-truck dispatches. This discipline drastically reduces the number of loads the company has to ship, cutting down on billable transportation hours and minimizing inventory holding costs.
- Weighted Pricing for Profitability: To ensure every consolidated truckload is profitable, the Finance team must calculate the Weighted Average Contribution Margin (WACM) for the multi-client load. This scientifically determines the true break-even point by accounting for the unique fixed costs of the trip versus the blended revenue streams from all the individual shipments. This rigorous financial analysis protects the business from losing money on shipments that only appear to be profitable.
4. The Communication Dividend: Building Trust in Transit
Volume LTL, by nature, involves multi-stop routes and longer transit times than dedicated FTL. This duration creates stress for the client. The only way to counter this is through superior communication, which transforms logistics from a source of anxiety into a genuine point of differentiation.
- Real-Time Visibility is Mandatory: An overwhelming 88% of LTL industry stakeholders agree that the ability to provide accurate, real-time Estimated Time of Arrival (ETA) updates is crucial for customer satisfaction. This requires investment in systems that provide constant monitoring and visibility on the move’s status.
- Proactive Notification: We do not wait for the customer to call us. We utilize technology to proactively inform customers of any potential delays. By communicating clearly and diligently, we build loyalty and trust, even when difficulties arise. Digital channels (email and text messaging) are often preferred over traditional phone calls for these updates.
Conclusion: The Strategic Imperative
The ability to successfully manage Volume LTL is the hallmark of a professional, efficient logistics enterprise. It is a strategic discipline that requires rigor in financial planning, a zero-tolerance approach to risk, and an unwavering commitment to communication.
By migrating your partial loads into a structured Volume LTL/Consolidation model, you move away from the LTL trap. This ensures that your company only pays for the space and time it truly utilizes. This is how Movenaw is delivering on its promise of A Better Way to Move Cargo, making logistics a driver of growth, not just an unavoidable cost.
