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