This post was originally published on May 6th, 2024, and updated on May 2nd, 2025.
Less-than-truckload (LTL) shipping is the transportation method for relatively small freight shipments that do not require the space of an entire truckload. Typically, these shipments range from 150 to 15,000 pounds and are combined with other small shipments from various shippers to fill a truck efficiently.
Carriers arrange and optimize these shipments through strategically placed terminals, allowing cost-effective transportation over short and long distances. LTL services offer businesses a flexible and economical option compared to full truckload (FTL) shipping.
LTL shipping offers tangible advantages that help businesses manage costs, improve delivery timelines, and efficiently scale shipments. Understanding these benefits can help determine if less-than-truckload shipping is the right solution for your logistics strategy. Read on to see how it can work for your business.
LTL shipping reduces costs by allowing multiple shippers to share transportation expenses. Companies only pay for their space, eliminating the unnecessary expense of partially empty truckloads. Shared costs among several shipments mean lower transportation rates for each participating company.
LTL provides flexibility for shippers with varying shipment sizes and frequencies. Businesses benefit from scheduling regular, smaller shipments instead of waiting to fill a full truckload, which facilitates effective inventory management and just-in-time delivery models. This flexibility helps businesses respond rapidly to market demand.
Modern LTL carriers utilize advanced technology systems that offer real-time shipment tracking. Shippers gain continuous visibility into their freight's location, delivery status, and estimated arrival times, which improves logistical planning and customer satisfaction.
Knowing how LTL shipping operates will help you streamline your process and avoid surprises. Learn how your freight moves from origin to destination through a carefully coordinated system that balances speed, efficiency, and cost.
Shipments from various customers are collected and consolidated at terminals or distribution centers. At these facilities, freight is sorted, weighed, labeled, and organized according to destination. This consolidation maximizes truck capacity and efficiency, minimizing shipping costs and transit time.
After consolidation, LTL shipments are routed through strategically positioned terminals across various regions. Freight moves efficiently through these terminals via a hub-and-spoke system, where shipments transfer between trucks en route to their final destinations. This systematic routing enhances speed and efficiency, even for smaller shipments.
Upon reaching their destination terminals, shipments are sorted again and loaded onto delivery trucks. These trucks then complete local deliveries, ensuring timely arrival at each recipient’s address. Regularly scheduled routes enable consistent delivery windows, providing predictability for receivers.
Knowing what drives less-than-truckload pricing allows you to manage your shipping budget better and select the most suitable service. Explore the key elements influencing LTL costs, including distance, accessorial charges, and freight characteristics, to stay ahead of the competition.
LTL shipping rates depend heavily on freight classification, which assesses shipment density, stowability, handling requirements, and liability risks. The National Motor Freight Traffic Association assigns each shipment a freight class ranging from Class 50 (lowest cost, easiest to transport) to Class 500 (highest cost, most difficult to handle).
Rates are calculated based on shipment weight and dimensions, which impact the shipping cost. Accurate measurement of weight and dimensions ensures precise rate quotes, minimizing discrepancies and avoiding additional charges.
Longer shipping distances and remote delivery locations typically result in higher LTL shipping rates due to increased transit time and fuel consumption. Carriers may also charge additional fees for residential, limited-access, or specialized delivery locations.
Your choice of less-than-truckload carrier directly impacts your shipping success. Evaluate service coverage, technology tools, and delivery performance to ensure dependable freight movement that aligns with your business needs.
Businesses should evaluate carriers based on geographic service coverage, ensuring they operate efficiently in regions where shipments frequently originate or terminate. Reliable regional coverage prevents delays and service interruptions.
Selecting carriers with a solid industry reputation helps ensure reliability and consistency in service delivery. Online reviews, industry certifications, and historical performance data offer valuable insights when evaluating potential carriers.
The carrier's technological capabilities, such as tracking systems, online portals, and automated communication tools, significantly impact service effectiveness. Carriers employing advanced logistics technologies provide superior transparency and enhance operational efficiency.
Less-than-truckload shipping offers benefits, but there are challenges to be aware of. Scheduling variability, potential damage during handling, and service inconsistencies require proactive planning and strong communication with your carrier.
Due to frequent handling and transfers between terminals, LTL shipments face a higher risk of damage than full truckloads. Proper packaging, clear labeling, and securing shipments minimize the risk and protect goods during transit.
While LTL shipping is generally efficient, shipment consolidation and terminal transfers can occasionally cause variability in delivery schedules. Businesses must account for potential delays when planning shipments, particularly when strict deadlines apply.
LTL rate calculations can be complex, incorporating additional fees, including fuel surcharges, accessorial charges, and dimensional weight pricing. Understanding these factors and negotiating transparent rate structures with carriers helps businesses manage and control shipping costs effectively.
A few adjustments can significantly improve your LTL shipping results. Implement proven tactics like accurate documentation, protective packaging, and consistent communication with trusted carriers.
Providing precise shipment details, such as accurate weight, dimensions, and freight class, is critical for receiving correct quotes and avoiding unexpected fees. Consistent accuracy in shipment documentation streamlines operations and reduces discrepancies.
Effective packaging reduces the likelihood of freight damage and enhances handling efficiency. Clearly labeled packages with visible and accurate shipping labels help carriers correctly sort and deliver shipments, minimizing potential errors and delays.
Building and maintaining strong relationships with reliable LTL carriers can lead to better service, competitive pricing, and improved handling of exceptions or special requests. Consistent communication and clear expectations facilitate smoother, more predictable shipping experiences.
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