Less-than-truckload (LTL) shipping provides a budget-friendly way to transport freight that doesn’t require a full trailer. In LTL shipping, you pay only for the space your goods occupy on the truck. This is ideal for small businesses and e-commerce sellers, whose loads (typically 150–15,000 lbs) are too small to fill an entire trailer. By combining multiple shippers’ freight into a single truck, LTL shippers optimize costs and efficiency.
LTL stands for Less-Than-Truckload freight. It refers to shipments that only occupy part of a trailer, unlike a full truckload (FTL) that fills an entire trailer. Typically, individual LTL shipments weigh between 150 and 15,000 pounds and fill 1–6 pallets (under about 14 linear feet) on a truck. Because LTL carriers combine freight from multiple customers, the total trailer space is nearly filled before moving. This shared-space model gives smaller shippers “cost savings” by splitting the trailer among many loads. In contrast, a full truckload shipment (FTL) is dedicated to one shipper’s freight and usually weighs tens of thousands of pounds.
Calculating LTL freight rates involves several key factors. Carriers quote LTL shipping primarily based on freight class, weight, density, and distance. In practical terms:
Distance: Longer shipping lanes cost more. The farther the freight travels, the higher the price, since fuel and transit time increase with mileage.
Weight: LTL pricing is typically on a per-hundredweight (CWT) basis. A heavier shipment will generally cost more overall but usually has a lower per-pound rate than a very light load. For example, shipping 3,000 lbs might cost more in total than 5,000 lbs, but the rate per hundredweight drops as the weight rises.
Freight Class/Density: Each LTL shipment is assigned a freight class (a number from 50 to 500) based on its density, value, liability, and handling difficulty. High-density, sturdy items have lower freight classes (and lower rates), while bulky, fragile, or high-liability items are in higher classes (higher rates). Carriers heavily use this classification to calculate LTL rates.
Accessorial Services: Special services add fees. Extras like residential pickup/delivery, liftgates, inside delivery, limited access, or white-glove handling each incur additional charges. A truck pickup in a rural area or requiring a liftgate, for example, will raise the cost beyond the base LTL rate.
A key decision is whether to ship LTL or book an FTL (full truckload). The table below summarizes the main differences:
| Feature | LTL Shipping | FTL Shipping |
|---|---|---|
| Shipment Size | Typically 150–15,000 lbs (1–6 pallets). Shares a truck with multiple shippers. | Generally >20,000 lbs (fills an entire trailer). Dedicated truck for one customer. |
| Cost Structure | You pay only for the space/weight you use. Higher freight class or extra services raise rates. | You pay for the full trailer, even if not filled. |
| Delivery Speed | Slower/more variable: trucks make multiple stops to drop off other loads. Delivery estimates are less predictable. | Fast/direct: truck goes point-to-point with no transfers. Timetables are more reliable. |
| Handling & Risk | More handling: freight is loaded/unloaded at hubs and cross-docked, increasing the risk of damage. | Less handling: freight is loaded once and sealed until delivery. Lower damage risk. |
| Best for | Small to medium loads or infrequent shipments. Cost-efficient when volume doesn’t justify a full truck. | Large, heavy, or time-sensitive shipments. Ideal for bulk freight or high-value loads. |
In summary, LTL is usually cheaper for smaller shipments, because you pay proportionally. LTL gives you higher cost savings when you ship only a few pallets at a time. This is cheaper…you are only paying for the space you are using. FTL makes sense if you can fill (or nearly fill) an entire truck, or if you need a dedicated truck for fast, one-stop delivery. Keep in mind that LTL often involves multiple stops, which can lengthen transit time and require more handling. In contrast, FTL shipments go directly from origin to destination with minimal handling.
For small businesses and e-commerce sellers, the advantages of LTL shipping are significant:
Lower Shipping Costs: You pay only for the portion of the trailer you use. Instead of renting an entire truck for a small load, your freight is combined with others, automatically saving money with minimal effort.
Improved Cash Flow & Inventory: LTL lets businesses ship smaller, more frequent loads. This reduces the need to hold large inventories and allows faster restocking. Companies can respond quickly to demand changes without overpaying for space.
Enhanced Security: LTL freight is typically palletized or crated. This means shipments are well-secured, and many carriers track pallets throughout transit. The more frequent movements are balanced by secure packaging; as one shipper notes, smaller, pallet-based LTL loads are often safer and easier to track than loose parcel shipments.
Eco-Friendly: Consolidated LTL shipments mean fewer total trucks on the road. As a result, LTL shipping “significantly reduces [its] carbon footprint” compared to sending every shipment separately. By choosing LTL, businesses not only save money but also reduce fuel use and emissions.
Flexibility and Service Options: Many LTL carriers offer a range of services (e.g., liftgates, residential delivery, guaranteed delivery, freight insurance) that can be tailored to the shipper’s needs. Carriers have also adopted advanced tech – online tracking, self-serve quoting, and transportation management systems – making LTL shipping more efficient and user-friendly.
Because of these benefits, LTL is a popular choice for small and midsize companies. LTL is perfect for small business shippers” because it brings “a lot of benefits that directly affect the business and its profitability.”
Working with a reliable LTL carrier or 3PL is essential to maximize these benefits. When selecting an LTL provider, consider:
Service Coverage: Make sure the carrier operates in the regions and lanes you ship to. You should confirm that any carrier you use has coverage for your pickup and delivery locations.
Special Services: Does the carrier handle your needs? For example, if you require inside pickup, liftgate service, or white-glove delivery, check that these accessorials are available. A good LTL partner will discuss your freight’s special requirements (e.g., refrigeration, hazardous materials, heavy lifts) and include any extra charges up front.
Technology & Support: Look for providers with online quoting and tracking tools. Today’s best LTL carriers and brokers offer web portals where you can get multiple quotes quickly and track shipments in real time. This transparency makes planning easier. Also assess customer service – a 24/7 support or dedicated rep can help resolve issues quickly.
Reputation & Reliability: Check carrier reviews or ask peers for recommendations. Key metrics include on-time delivery rates, claims ratios, and safety ratings. Even among large carriers, service levels vary. It’s wise to compare pricing and service across several LTL carriers.
Cost & Agreements: Review how the carrier calculates rates and make sure there are no hidden fees. If you ship frequently, consider negotiating a volume contract with guaranteed rates.
At DR Trans, we help each client solve their shipping puzzles by matching shipments to the right carriers. With a network of reliable regional and national LTL connections, plus 24/7 dispatch support, DR Trans can secure capacity and optimize routes tailored to your needs. Our experts ensure your loads are handled safely and on schedule, bringing our customers a more professional transportation solution.
What does LTL mean in shipping?
LTL stands for Less-Than-Truckload. It means your shipment does not fill a full trailer. LTL freight is combined with other customers’ freight in the same truck. For example, a 2,000-lb pallet load would go on an LTL truck alongside other pallets until the trailer is nearly full. It is ideal for loads that are too big for parcel service but too small to justify a whole truck.
How are LTL shipping rates determined?
LTL carriers base their rates on multiple factors. Key inputs include the distance shipped, the shipment’s weight and dimensions, and the freight class (which accounts for density and handling). LTL rates are based heavily on your shipments’ classification, as well as their weight, density, and value. In practice, you usually get a per-hundredweight (CWT) rate: a longer route costs more, and heavier loads are cheaper per pound than lighter ones. Special services (like liftgate or residential delivery) add extra fees. To calculate a quote, carriers combine all these elements into a total charge.
What are the benefits of using LTL shipping?
LTL shipping offers several advantages. It saves money, since you pay only for the trailer space you use. It also lets businesses ship smaller, more frequent loads, improving inventory control. Consolidating freight means fewer trucks on the road, so it’s more environmentally friendly. Because LTL shipments are palletized and tracked, they tend to be more secure and easier to manage than many smaller package shipments. Finally, LTL carriers often offer flexible options (such as expedited services, guaranteed deliveries, etc.), giving shippers greater control over their logistics.
How do I choose an LTL freight provider?
To pick the best LTL carrier, start by ensuring they serve your required lanes. Verify that any carrier or 3PL covers both your pickup and delivery areas. Check that they offer the services you need (special handling, equipment, insurance). Compare quotes and service levels: since a few carriers dominate the market, using an aggregator or 3PL can quickly show your best rate. Look at performance metrics (on-time rate, damage claims) and read customer feedback if available. In short, choose a reliable carrier, has the right equipment and gives transparent rates. Companies like DR Trans can help by leveraging our carrier network and expertise to find the most professional, cost-effective LTL solution for your shipments.
LTL freight shipping can significantly lower costs and improve efficiency for small and medium businesses. By understanding how LTL works, how rates are set, and how it compares to full truckload shipping, you can make informed shipping decisions. If you frequently ship partial loads, LTL is often the best choice. Partnering with a knowledgeable logistics provider like DR Trans will ensure you take full advantage of LTL’s benefits – solving your shipping challenges with professional guidance and a strong carrier network.
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