What is LTL Shipping?
LTL (Less-Than-Truckload) shipping is a freight transportation method where multiple shippers share space on a single truck. Unlike full truckload (FTL) shipping, where one shipper books the entire trailer, LTL allows you to ship smaller quantities-typically between 150 and 15,000 pounds-at a fraction of the cost.
Think of LTL like a bus route for freight: the truck makes multiple stops to pick up and deliver different shippers' goods, with each customer paying only for the space they use.
LTL shipping accounts for approximately $50 billion of the U.S. freight market annually, making it one of the most common shipping methods for businesses of all sizes.
How LTL Shipping Works
The LTL shipping process involves several key steps:
1. Pickup
A carrier picks up your freight from your location (or you drop it at a terminal). Your shipment is loaded onto a local truck with other shippers' freight.
2. Local Terminal
The freight is transported to a local terminal (also called a service center), where shipments are sorted and consolidated based on destination.
3. Linehaul
Consolidated freight moves via long-haul trucks to destination terminals. For long distances, freight may pass through multiple hubs.
4. Destination Terminal
At the destination terminal, your freight is sorted and loaded onto a local delivery truck.
5. Final Delivery
The local driver delivers your freight to its final destination along with other shipments.
LTL Pricing Factors
LTL pricing is more complex than FTL due to multiple variables:
Weight
The total weight of your shipment is a primary cost driver. Heavier shipments cost more, but the per-pound rate typically decreases as weight increases.
Freight Class
Every LTL shipment is assigned a freight class (50-500) based on density, handling characteristics, stowability, and liability. Higher classes = higher rates.
Distance
The origin and destination ZIP codes determine the shipping lane and associated base rate. Longer distances generally cost more.
Density
Carriers calculate the density (weight per cubic foot) of your shipment. Low-density freight takes up more space relative to its weight, resulting in higher costs.
Accessorial Charges
Additional services add to the base rate:
- Liftgate: Hydraulic lift for locations without loading docks
- Residential delivery: Delivery to home addresses
- Inside delivery: Moving freight beyond the first door
- Limited access: Delivery to schools, churches, construction sites
- Appointment: Scheduled delivery windows
- Hazmat: Hazardous materials handling
Fuel Surcharge
A variable percentage added to the base rate that fluctuates with diesel prices.
Understanding Freight Classification
The National Motor Freight Classification (NMFC) system assigns classes based on four characteristics:
- Density: Weight per cubic foot (most important factor)
- Stowability: How easily it fits with other freight
- Handling: Special handling requirements
- Liability: Risk of damage or theft
Classes range from 50 (most dense, lowest cost) to 500 (least dense, highest cost). Common examples:
- Class 50: Fits >50 lbs/ft³ (e.g., sand, bricks)
- Class 70: 15-22.5 lbs/ft³ (e.g., car parts, food items)
- Class 125: 7-8 lbs/ft³ (e.g., small appliances)
- Class 250: 3-4 lbs/ft³ (e.g., mattresses, bamboo furniture)
Pros and Cons of LTL Shipping
Advantages
- Cost-effective: Pay only for the space you use
- Flexible: Ship any quantity from 1-10+ pallets
- Regular service: Daily pickups available in most areas
- Tracking: Real-time visibility into shipment status
- Lower carbon footprint: Shared capacity reduces emissions per unit
Disadvantages
- Longer transit times: Multiple stops add time
- More handling: Increased risk of damage
- Complex pricing: Many variables affect cost
- Delivery windows: Less control over exact timing
- Reweigh risk: Carriers may adjust weight/class
LTL Shipping Best Practices
- Measure and weigh accurately: Avoid costly reweigh fees by providing correct dimensions and weight upfront.
- Choose the right freight class: Understand NMFC classifications to avoid surprises.
- Package properly: Use pallets, shrink wrap, and proper protection to prevent damage claims.
- Get multiple quotes: Rates vary significantly between carriers. Compare at least 3-5 options.
- Consolidate shipments: Combine multiple orders to achieve better rates and reduce handling.
- Plan for accessorials: Know what services you need and factor them into your cost calculations.
- Track proactively: Monitor shipments and address issues before they become problems.
When to Use LTL vs FTL
Choose LTL when:
- Shipment is 150-15,000 lbs (1-10 pallets)
- You don't have enough freight to fill a truck
- Transit time of 1-5 days is acceptable
- Cost efficiency is more important than speed
Choose FTL when:
- Shipment exceeds 10 pallets or 15,000 lbs
- You need faster, guaranteed delivery
- Freight is fragile or high-value
- The per-pound cost of LTL exceeds FTL rates
Conclusion
LTL shipping is a versatile, cost-effective solution for businesses shipping moderate quantities of freight. Understanding how LTL works, what affects pricing, and best practices for shipping can help you optimize costs while maintaining reliable service.
With the right approach and tools, LTL shipping can be a powerful component of your supply chain strategy.