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Less Than Truckload (LTL) is a freight shipping method for cargo that does not fill an entire trailer. Instead of renting a whole truck, you pay only for the space your shipment occupies, and the carrier combines your freight with other shippers' cargo to fill the trailer. LTL shipping typically covers loads between 150 and 15,000 pounds and is usually palletized.
It is the default choice for small and mid-sized businesses that need to move more than a parcel carrier can handle but cannot justify the cost of a full truck.
LTL is not a direct pickup-to-delivery service. A driver picks up your freight and brings it to a regional terminal, where it is sorted and consolidated with other shipments heading in the same direction. That consolidated load moves to a distribution hub, may cross-dock at one or more intermediate terminals, and then gets broken down again at a terminal near the destination for final delivery.
Think of it like connecting flights: your freight moves efficiently but makes multiple stops before arrival.
This hub-and-spoke structure is why LTL transit times are longer than full truckload shipments. A direct Chicago-to-Atlanta truckload run might take two days. The same freight moving LTL might take three to five days depending on the carrier's network density.
LTL pricing is not simply based on weight and distance. Every shipment is assigned a freight class number from 50 to 500 by the National Motor Freight Classification (NMFC) system, based on four factors: density, stowability, handling difficulty, and liability risk.
Dense, easy-to-stack goods with low damage risk receive a low class number and a low rate per hundred pounds. Fragile, irregularly shaped, or high-value goods get a high class and cost more to ship. A class 50 shipment might cost $15 per hundred pounds while class 400 might cost $200 for the same weight and distance.
This is the main financial advantage of LTL over full truckload. If your shipment fills two pallets out of a 26-pallet trailer, you pay for two pallets' worth of space. The other 24 pallets are covered by other shippers sharing the load.
FedEx and XPO are among the major carriers offering LTL across the US including Alaska, Hawaii, and Puerto Rico. Carriers like Schneider and Uber Freight also operate extensive LTL networks with cross-border service into Canada and Mexico.
Because your freight moves through multiple terminals and gets touched by multiple handlers, the damage risk is higher than with a dedicated full truckload shipment. Proper packaging matters significantly. Carriers prefer palletized freight, and adequate internal packing to prevent shifting during transit reduces your exposure to claims.
Each LTL shipment requires a Bill of Lading containing the shipper and consignee details, item description, weight, number of pieces, freight class, and any special service requirements. An incomplete Bill of Lading can delay your shipment or generate an inaccurate invoice.
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