Understanding how Less Than Truckload (LTL) freight works is essential if your business ships physical products too large for regular parcels. This shipping method is particularly useful for last-mile delivery, where optimizing shipments can greatly improve customer satisfaction.
Knowing the differences between LTL and other shipping options will help you choose the best solution for your business. Plus, it gives you insight into the cost factors, benefits, and situations where LTL is the better choice over alternatives like Full Truckload (FTL) or regular parcel shipping.
Let’s get to it!
Understanding Less Than Truckload (LTL) Shipping
Less Than Truckload (LTL) shipping is a method designed for shipments that are too large to be sent as regular parcels but not big enough to fill an entire truck. Instead of paying for a whole truck, you share space with other shipments, making it a cost-effective option for smaller loads.
Several factors impact how your freight is classified:
- Density: Weight relative to the space your shipment occupies.
- Stowability: How well your freight fits with other cargo.
- Handling: The effort required to move or secure your shipment.
- Liability: The risk of damage to or from your shipment.
LTL shipments range in weight from 150 pounds up to 15,000 pounds; how a shipment is categorized as LTL depends on several conditions, including size, weight, and stowability. These shipments are classified by the shipping industry using the National Motor Freight Classification (NMFC). There are about five classes of freight, 50 to 500, which indicates that the lower the number, the less trouble for the carrier and, in most cases, cheaper freight charges.
The freight class appears on the shipping document known as the bill of lading. Knowing about these classification factors is crucial to ensure that you get the correct shipping costs and that everyone and everything are properly managed.
Using LTL allows you to avoid paying for a full truck and only pay for the space your freight occupies, which can save money and improve shipping efficiency.
How to Tell Apart LTL, FTL, and Parcel Shipments
You can mainly differentiate shipments by their weight and how much trailer space they require:
- LTL (Less Than Truckload): These shipments range from 150 to 15,000 pounds and don’t take up a full trailer, so they share space with other loads.
- FTL (Full Truckload): These shipments are over 15,000 pounds and take up an entire trailer alone.
- Parcels: These weigh up to 150 pounds and are small enough to handle easily without special equipment.
Pros and Cons of LTL Freight Shipping
Advantages You Gain with LTL Freight Shipping
LTL shipping allows you to share space with other shipments, which means you only pay for the portion of the trailer your goods occupy. This makes it suitable for use where small quantities are being shipped, as it will be faster and cheaper in the long run.
Your goods are often shipped on pallets, which helps minimize losses during transportation. Additionally, LTL provides additional services such as inside pickups and deliveries, as well as liftgate services, which are not offered by other forms of shipment.
Drawbacks to Consider When Using LTL Shipping
LTL shipping might not be the best choice for very small, oversized, or extremely heavy shipments. If your cargo needs the full capacity of a truck or requires special handling, other freight options could be more suitable.
It is also good to know that while LTL freight can be affordable most of the time, special charges may apply. Extra charges such as fuel or handling charges seem to develop because LTL carriers have to make many stops to pick up as well as drop shipments. These extra stops cost more in terms of labor, fuel, and time and may therefore be reflected in the cost of services to you.
What Influences Your LTL Shipping Costs?
Several factors typically influence the amount of money you will be charged for less than truckload freight:
- Travel Distance: The farther the shipment travels, the higher the cost.
- Freight Classification: This depends on density, storage needs, handling complexity, and risk factors.
- Special Handling: Items that are fragile, perishable, or hazardous can increase charges.
- Additional Services: Tasks like obtaining digital proof of delivery add to the fee.
- Delivery Speed: Choosing faster shipping options will raise the rate.
By understanding these factors, you'll be better equipped to anticipate and manage your LTL shipping expenses.
How to Lower Your LTL Shipping Expenses
To reduce the costs of LTL shipments, many transporters organize several businesses to share the available space on their vehicles. This way of working also helps to divide costs, making the shipment more affordable for all parties concerned.
Another way to save is by choosing an LTL carrier with advanced dispatch and routing software. These tools improve delivery efficiency and help reduce last-mile charges, savings often passed along to you.
You can also partner with a third-party logistics (3PL) provider. They can negotiate better rates on your behalf and use logistics technology to optimize shipping schedules and routes, helping to eliminate unnecessary costs.
Key Actions to Save on LTL Shipping:
- Collaborate with freight brokers to consolidate shipments
- Select carriers using smart routing and dispatch systems
- Utilize third-party logistics firms for rate negotiation and planning
Applying these methods can help you manage your LTL shipping budget more effectively without compromising service.
When to Use LTL Shipments
LTL shipping is a great fit when your freight weighs between 150 and 15,000 pounds—too big for parcel delivery but not large enough to fill an entire truck. One of the biggest perks? You only pay for the space you use, which can lead to real savings, especially when you work with freight brokers or logistics partners to get better rates.
It is ideal for medium-sized shipments and useful for combining a number of shipments in one. In that manner, the transport costs are kept low while ensuring that the delivery of the products is not compromised.
When Is Parcel a Better Choice Than LTL?
If your package weighs less than 150 pounds, parcel shipping is often the more budget-friendly option. It’s designed for smaller, individual shipments and can save you money, especially for frequent or residential deliveries.
However, the amount is still reasonable given that some parcel carriers can now handle bulkier parcels. Hence, it is important to compare the rates. It is very important to note that parcel services may sometimes cost you even more when shipping to office buildings, because LTL carriers charge additional fees for inside delivery.
Why Using Technology Matters in LTL Shipping
Modern LTL shipping depends on its decision-making, including routing and dispatch. These systems enable carriers to use the space in the trucks optimally and help arrive at quicker delivery networks. Also, with real-time tracking, both of you will be updated from the beginning to the end of the delivery process.
Tech also improves how second delivery attempts are handled—automated notifications mean fewer missed drop-offs. And when it comes to choosing a carrier, online comparison tools make it easy to weigh your options and pick the best fit without wasting time.
How to Optimize LTL Freight Shipping
1. Keep an Eye on Key Metrics
Tracking performance indicators like cost per pound, on-time delivery rate, damage claims, and billing accuracy can give you a clearer picture of your LTL shipping performance. These numbers help you spot issues early, compare carriers, and make smarter shipping decisions.
2. Measure and Classify Accurately
To do this correctly, you should weigh and measure your freight before shipping it. Of course, it is much easier to classify them based on size, density, and the handling requirements so as not to be left by surprise with charges or delays. Specific information also helps compare carrier quotes more easily.
3. Compare Carriers Thoughtfully
While price is a crucial factor that a consumer cannot ignore, it is not the only factor that can define the right product. When choosing the LTL carriers, compare the delivery time, additional services, including liftgate and contactless delivery, and their performance. It is important to remember that gathering a little information will go a long way in saving a lot of time and money.
4. Pack with Care
Packaging is not only a protective layer for any product, but also contributes to efficient logistics. Ensure your items are stacked on pallets or crates as necessary. When deciding on your packaging, remember not only the vulnerability and mass of your goods but also how they are handled during transport.
5. Get the Paperwork Right
Always verify your shipping documents before you send any single shipments on the road. Make sure to describe all the basics, such as size and weight of the unit, the freight class, number of units, value declared, etc. Making paperwork accurate is an absolute must to have one less thing to worry about throughout the legal process.
The Future of LTL freight
As demand grows, LTL freight is becoming more complex and precise. With more shipments moving through the system, carriers are relying on advanced technology and efficiency upgrades to keep everything running smoothly.
To maximize LTL shipping returns, compare multiple carrier providers by price and delivery rate. Track several delivery parameters and maintain conventional modes of transport to make the process more accurate and less arbitrary.
Another tip is cooperating with freight brokers. They may link you to other shippers, sharing costs, which helps you seek better rates. Moreover, working with LTL providers that employ smart routing and dispatching capabilities will result in more efficient and faster deliveries.
Partnering with third-party logistics providers will be good if one requires a more specialized setup. This will allow them to develop specific shipment strategies that meet your organization's requirements and can be changed as you grow. With the continuous shift toward higher service and capacity, it makes sense to identify motifs that seem compatible with your customers' expectations.
Frequently Asked Questions About LTL Freight
How Does LTL Freight Differ from Full Truckload (FTL) Shipping?
FTL or Full Truckload shipping is suitable if the shipment weighs above 15,000 pounds or occupies the whole truck space. It is advantageous when the goods are fragile or perishable, since it provides a door-to-door service without transshipment or additional handling.
Why Can LTL Freight Costs be Higher?
LTL shipping costs more because drivers must make multiple stops to pick up and deliver freight from different shippers. This means more time spent on handling, additional labor, and increased fuel expenses.
On the other hand, FTL shipments are more straightforward—drivers pick up the load from one location and deliver it directly, keeping transit time and costs lower. The extra work required in LTL shipping leads to higher fees.
Key Differences Between LTL and FTL
- Stops per trip: LTL - Multiple; FTL - Single
- Cost efficiency: LTL - Higher per shipment; FTL - Lower if full load
- Suitability: LTL - Partial loads; FTL - Full loads or sensitive freight
- Driver time: LTL - More loading/unloading; FTL - Mostly driving
Understanding these factors can help you select the best shipping option based on your freight size and delivery priorities.
