Mode Selection / Mode Optimization

Mode selection is the decision of how freight will travel: full truckload, less-than-truckload, intermodal, air freight, ocean, or parcel. Each mode carries different cost structures, transit times, handling characteristics, and capacity constraints. Choosing the right mode for each shipment – rather than defaulting to habit – is one of the most impactful decisions in freight management.

The factors driving mode selection include shipment size and weight, delivery urgency, lane distance, product sensitivity, and cost tolerance. A 12-pallet shipment moving 500 miles with a three-day window is a natural FTL candidate. The same freight with a next-day requirement might need air. Six pallets to the same destination could go LTL at lower cost – or consolidate with other orders into an FTL. Intermodal offers significant savings on long-haul lanes where transit time flexibility exists, often 15–30% less than over-the-road FTL.

Mode optimization goes a step further: rather than selecting mode on a per-shipment basis, it analyzes patterns across the shipper's entire order book to identify systematic mode shifts. A shipper sending three LTL shipments per week to the same region might save 20–30% by consolidating into a weekly FTL. A shipper defaulting to FTL on a 1,200-mile lane might find intermodal delivers the same service level at meaningfully lower cost.

The key enabler is visibility into all available rates across modes simultaneously. When a planner can see FTL, LTL, and intermodal pricing side-by-side for the same shipment, mode selection becomes a data-driven decision rather than a default.