LTL (Less Than Truckload)

Definition

LTL stands for Less Than Truckload shipping—a freight transportation method used when a shipment does not require the full space of a standard 48-foot or 53-foot trailer. LTL carriers consolidate multiple smaller shipments from different shippers onto a single truck, optimizing trailer utilization and reducing costs for businesses that don't ship in full truckload quantities.

How LTL Shipping Works

LTL carriers operate through a hub-and-spoke model:

1. Pickup: Local trucks collect shipments from multiple shippers
2. Consolidation: Shipments are transported to a central terminal/hub
3. Sorting: Freight is sorted and loaded onto linehaul trucks based on destination
4. Linehaul: Long-distance transport between hubs
5. Deconsolidation: At the destination hub, shipments are sorted for local delivery
6. Final Delivery: Local trucks deliver to consignees

This network approach allows carriers to efficiently move freight while keeping costs manageable for shippers.

Typical LTL Shipment Characteristics

| Attribute | Range | |-----------|-------| | Weight | 150 – 15,000 lbs | | Pallet Count | 1 – 6 pallets | | Linear Feet | Up to 12-16 feet |

LTL vs. FTL (Full Truckload)

| Factor | LTL | FTL | |--------|-----|-----| | Trailer Space | Shared with other shippers | Exclusive use | | Transit Time | Longer (multiple stops) | Faster (direct) | | Cost | Lower per shipment | Lower per unit | | Handling | More (multiple touchpoints) | Minimal | | Best For | Small-medium shipments | Large-volume shipments |

Key LTL Pricing Factors

• Freight Class: NMFC classification based on density, handling, stowability, and liability
• Weight: Actual or dimensional weight
• Distance: Origin to destination zones
• Accessorials: Additional services (liftgate, residential delivery, inside delivery, etc.)
• Fuel Surcharge: Variable based on market conditions

Benefits of LTL Shipping

• Cost Efficiency: Pay only for the space you use
• Flexibility: Ship smaller quantities more frequently
• Tracking: Robust tracking through hub networks
• Reduced Inventory: Smaller, more frequent shipments support lean inventory strategies
• Accessibility: Extensive coverage including residential and limited-access locations

Common LTL Accessorial Charges

• Liftgate service
• Inside pickup/delivery
• Residential pickup/delivery
• Limited access locations (schools, churches, military bases)
• Notification prior to delivery
• Reweigh/reclassification
• Overlength fees
• Hazardous materials handling

When to Choose LTL

LTL is ideal when:

• Shipment weighs 150–15,000 lbs
• You ship 1–6 pallets
• Cost is a higher priority than speed
• Freight can withstand multiple handling touchpoints
• You don't have enough volume to justify a full truckload

For shipments exceeding 15,000 lbs or 6+ pallets, consider volume LTL or partial truckload options as a middle ground between LTL and FTL.