For businesses that need to ship products but don’t have enough merchandise to fill an entire truck, less-than-truckload shipping offers an efficient and cost-effective solution. This specialized shipping method allows multiple businesses to share space on the same truck, significantly reducing transportation costs while maintaining reliable delivery schedules.
Less-than-truckload freight usually ranges from 150 to 15,000 pounds, too large for parcel carriers like UPS or FedEx Ground, but too small to justify the expense of a dedicated full truckload. Modern less-than-truckload transportation companies utilize sophisticated logistics software to determine the most efficient ways to combine shipments, plan routes, and schedule deliveries. This technological evolution has made LTL shipping more reliable, transparent, and accessible than ever before.
What Is Less-Than-Truckload (LTL) Shipping?
Less-than-truckload shipping (LTL) is a freight transportation method where multiple shipments from different customers share space on the same truck. This approach allows businesses to ship goods that are too large for parcel services but don’t require a full truckload (FTL), ranging from 1-6 pallets or 150-15,000 pounds.
The fundamental concept behind LTL shipping is space optimization. Instead of a single shipper paying for an entire truck that might be partially empty, multiple shippers divide the cost of a single truck based on the space their shipments occupy. This creates a win-win scenario: carriers fill their trucks more completely, and shippers avoid paying for unused space.
LTL shipments travel through a hub-and-spoke network operated by the less-than-truckload transportation company. This network consists of:
- Local terminals where freight is picked up from the shippers
- Regional consolidation centers where shipments are sorted and combined
- Line-haul operations, where consolidated freight moves between major hubs
- Destination terminals where shipments are deconsolidated for final delivery
Unlike parcel shipping, LTL freight travels on pallets or requires special handling due to its size and weight. Common items shipped via LTL include:
- Furniture and fixtures
- Manufacturing equipment
- Building materials
- Retail merchandise
- Industrial supplies
- Food products (non-perishable or temperature-controlled)
For businesses that ship quantities too large for standard parcel services but too small for full truckload, LTL provides the ideal middle-ground solution that balances cost, efficiency, and reliability.
How Less-Than-Truckload (LTL) Shipping Works?
The LTL shipping process follows a streamlined flow that starts with pickup. The shipper contacts a carrier or broker to arrange collection, providing details about dimensions, weight, origin, destination, and any special requirements. The carrier assigns a tracking number for less than truckload tracking.
At the origin terminal, workers verify the freight’s dimensions and weight, which determines final shipping costs and helps plan efficient loading. Then comes consolidation, the core of LTL shipping, where workers combine multiple shipments heading in similar directions onto the same truck. This requires careful planning to:
- Maximize space utilization
- Prevent damage from improper stacking
- Balance heavy and light items appropriately
- Address special handling needs
The consolidated freight travels through a hub-and-spoke system, potentially transferring between trucks at intermediate terminals as it moves toward its destination. This network allows less-than-truckload freight to move efficiently despite complex logistics of handling multiple shipments.
At the destination terminal, the freight is prepared for final delivery, with recipients often receiving delivery window notifications. Carriers use specialized equipment like lift gates for businesses without loading docks.
Throughout this journey, less than truckload carriers provide visibility through online tracking systems, allowing both shippers and recipients to monitor progress and plan accordingly.
5 Benefits of Less-Than-Truckload (LTL) Shipping
Cost Efficiency
The most compelling advantage of less than truckload shipping is its cost-effectiveness for smaller shipments. By sharing truck space with other shippers, businesses only pay for the portion of the truck they use, usually based on dimensions, weight, and distance traveled. This shared-cost model creates significant savings compared to booking an entire truck for a partial load.
For example, shipping five pallets via LTL might cost $600-800, while a dedicated full truckload could cost $1,200-2,000 regardless of how much space you actually use. These savings directly impact a company’s bottom line and can be passed on to customers through more competitive pricing.
LTL shipping also offers flexible service options at different price points. Businesses can choose standard service for the best rates, or expedited options when time is more critical than cost. This flexibility allows companies to make strategic decisions about shipping speed versus expense based on specific business needs and customer expectations.
Reduced Environmental Impact
Less-than-truckload transportation companies provide an environmentally friendlier shipping solution by maximizing vehicle utilization. When multiple shipments share a single truck, fewer vehicles are needed to transport the same amount of freight, resulting in:
- Lower fuel consumption per shipment
- Reduced carbon emissions and air pollution
- Decreased road congestion and infrastructure wear
- More efficient use of transportation resources
For businesses with sustainability goals or environmental commitments, LTL shipping offers a way to reduce transportation-related environmental impacts without sacrificing shipping capabilities. Many carriers now track and report carbon savings, allowing businesses to document these environmental benefits in their sustainability reporting.
Enhanced Security and Reduced Damage
Professional less-than-truckload carriers implement rigorous handling procedures that often result in better freight protection compared to other shipping methods. LTL shipments travel on pallets and are handled using forklifts rather than manual lifting, reducing the risk of drops and handling damage.
The terminal-based network used by LTL carriers provides additional security benefits:
- Freight remains within secure, monitored facilities when not in transit
- Shipments are scanned and tracked at multiple points throughout the journey
- Professional drivers and equipment reduce accident risks
- Climate-controlled options protect sensitive items
Many carriers offer additional protection options such as blanket wrapping for delicate items or guaranteed delivery windows for time-sensitive shipments. These services provide peace of mind that goods will arrive safely and on schedule.
Extensive Geographic Coverage
The established networks maintained by less-than-truckload carriers provide comprehensive geographic coverage that smaller shipping companies can’t match. Major LTL carriers operate hundreds of terminals across North America, allowing them to service virtually any commercial address in the continental United States, as well as many locations in Canada and Mexico.
This extensive coverage means businesses can:
- Serve customers in both urban centers and rural areas
- Maintain consistent shipping options across diverse markets
- Expand into new territories without establishing new shipping relationships
- Provide reliable delivery estimates regardless of destination
For growing businesses, this broad geographic reach eliminates the need to manage multiple regional carriers as they expand into new markets. Instead, they can maintain relationships with a small number of preferred LTL partners who can handle shipments to any of their customers.
Advanced Technology and Shipment Visibility
Modern LTL tracking systems provide unprecedented visibility into shipment status. Most established carriers offer real-time tracking platforms that allow shippers and recipients to monitor freight location throughout the journey. These technologies have transformed LTL shipping from a “black box” process to a transparent one where all parties can access up-to-date information.
Beyond basic tracking, technological advancements in the LTL industry include:
- Automated pickup scheduling through online portals
- Digital bill of lading and paperless documentation
- Accurate delivery estimates based on real-time conditions
- Automated delivery notifications and proof of delivery
- Integration capabilities with shippers’ inventory and order management systems
These technological tools allow businesses to better plan around shipping timelines, provide customers with accurate delivery information, and quickly address any issues that arise during transit. The combination of physical transportation networks with digital information systems creates a seamless shipping experience that enhances business operations.
What Determines LTL Shipping Rates?
Understanding the factors that influence LTL shipping rates helps businesses better predict costs and potentially identify ways to reduce shipping expenses. Unlike full truckload pricing, which is primarily based on distance and market conditions, LTL pricing involves multiple variables that determine the final rate.
Freight classification is crucial in LTL pricing. The NMFTA assigns commodities a class from 50-500 based on:
- Density: Heavier, more compact items receive lower class numbers and better rates
- Stowability: Items that fit easily on a truck without special arrangements cost less to ship
- Handling: Freight requiring special equipment or care commands higher rates
- Liability: Products that are valuable, fragile, or hazardous fall into higher classes
Distance affects costs through lane-based pricing rather than simple per-mile calculations. Lanes with balanced freight flows in both directions offer more competitive rates than imbalanced routes, where trucks often return empty.
Dimensional weight (space occupied relative to actual weight) significantly impacts less-than-truckload freight pricing. Bulky but lightweight items may be charged based on space rather than weight, as carriers maximize revenue per truck.
Additional factors that can influence LTL rates include:
- Accessorial services (residential delivery, lift gates)
- Fuel surcharges
- Base rate discounts for regular shippers
- Minimum charges regardless of shipment size
- Special handling requirements
Many less-than-truckload transportation companies offer volume discounts for businesses that ship regularly. Establishing relationships with preferred carriers and potentially negotiating contract rates can lead to significant savings for companies with consistent shipping needs.
Final Call
Ready to revolutionize your shipping strategy? Tech Rig Dispatch transforms your LTL shipping experience with modern technology and personalized service. Unlike traditional brokers who treat every shipment the same, we leverage proprietary algorithms to identify the perfect carrier for each unique load, saving you on shipping costs.
We’ve eliminated the frustration of calling multiple carriers for quotes, deciphering complicated pricing structures, and wondering where your freight is. Our team of logistics experts becomes your dedicated shipping department, negotiating better rates and advising on packaging optimization to further reduce costs.
Contact us to learn how our technology and expertise can streamline your LTL operations!
FAQs
What’s the difference between LTL and FTL shipping?
LTL (Less-than-truckload) involves multiple shippers sharing space on one truck, with each paying only for the space they use. FTL (Full truckload) means one shipper books an entire truck exclusively for their freight, regardless of whether they fill it completely. LTL is more economical for smaller shipments, while FTL offers faster transit times and fewer handling points for larger shipments.
How should I prepare my freight for LTL shipping?
Properly prepare your LTL shipment by securely packaging items on standard pallets (typically 40″x48″), ensuring nothing overhangs the edges. Shrink-wrap thoroughly to prevent shifting, clearly label each piece with shipping information, and provide accurate dimensions and weight on your bill of lading.
How far in advance should I book LTL shipping?
For standard LTL service, book 24-48 hours before your desired pickup date to ensure availability. During peak shipping seasons (like holidays), allow 3-5 business days. Expedited or guaranteed LTL services can often accommodate same-day or next-day pickups for urgent shipments, though these premium services come with higher costs.
Can LTL shipping handle fragile or specialized items?
Yes, LTL carriers can transport fragile or specialized items with proper preparation and service selection. For delicate goods, consider options like inside delivery, blanket wrap service, or lift gate service for locations without loading docks. Always declare accurate freight class for specialty items and provide detailed packaging information to ensure proper handling throughout transit.
