Imagine you’re a small business with only a few pallets to ship. Hiring an entire truck sounds excessive and expensive, right? That’s where LTL shipments, or Less-than-Truckload shipments, step in. This freight solution provides a flexible and cost-effective way to transport smaller loads without incurring unnecessary costs for unused truck space.
In this comprehensive guide, we’ll walk you through what LTL shipments are, how they function, when they make sense for your business, and how to choose the right LTL carrier.
What Are LTL Shipments?
LTL (Less-than-Truckload) shipping is a freight method where multiple shippers share space on a single truck. Instead of renting the entire truck, you pay only for the portion of the truck that your goods occupy. It’s ideal for shipments weighing between 150 and 15,000 pounds.
Key Characteristics of LTL Shipping:
- Shared truck space among multiple shippers
- Typically palletized goods
- Cost is based on weight, dimensions, freight class, distance, and required services
- Involves terminal-to-terminal transfers
How Do LTL Shipments Work?
Think of LTL as the rideshare of freight shipping. Here’s how it typically unfolds:
- Pickup: Your shipment is picked up from your warehouse and taken to a local terminal.
- Sorting: At the terminal, it’s sorted and consolidated with other LTL shipments heading in the same direction.
- Linehaul Transit: The grouped shipments travel together to a destination terminal.
- Final Delivery: From the destination terminal, each shipment is delivered to its final location.
The LTL Network:
- Origin Terminal → Hub Transfer → Destination Terminal → Final Mile Delivery
This hub-and-spoke model allows carriers to serve more locations cost-effectively.
When Should You Use LTL Shipments?
LTL shipping isn’t for everyone, but for many small and mid-sized businesses, it’s a logistical win. Here’s when LTL makes the most sense:
Use LTL When:
- You have 1–6 pallets
- Shipment weighs 150–15,000 lbs
- You don’t need express delivery
- You want to reduce shipping costs
Don’t Use LTL If:
- You have fragile or high-value cargo that can’t be handled multiple times
- Your shipment is extremely time-sensitive
- Your destination is remote with limited LTL access
Benefits of LTL Shipments
LTL isn’t just about cost. It offers multiple advantages:
1. Cost Efficiency
- Pay only for the space you use
- Consolidated freight reduces fuel and labor costs
2. Flexibility
- Frequent departures mean more scheduling options
- Great for businesses with regular but small-volume shipping needs
3. Environmental Impact
- Fewer trucks on the road reduce carbon emissions
4. Additional Services Available
- Inside pickup/delivery
- Liftgate services
- Residential delivery
LTL vs. FTL: What’s the Difference?
| Feature | LTL (Less-than-Truckload) | FTL (Full-Truckload) |
|---|---|---|
| Load Size | Partial truck space | Entire truckload |
| Ideal For | 1-6 pallets, 150–15,000 lbs | Large shipments >15,000 lbs |
| Cost | Shared cost | Flat-rate per truckload |
| Handling | Multiple touchpoints | Direct delivery, less handling |
| Transit Time | Longer due to stops and sorting | Faster, direct shipping |
| Risk of Damage | Slightly higher | Lower due to less handling |
Choosing the Right LTL Carrier
All LTL providers are not created equal. Consider the following when selecting an LTL carrier:
1. Transit Times & Service Area
- Ensure the carrier covers your shipping region efficiently
2. Freight Class Accuracy
- Accurate classification avoids reclassification fees
3. Technology Integration
- Real-time tracking, online booking, and automated alerts streamline the process
4. Customer Service
- Reliable customer support is essential, especially during delays or claims
5. Reputation & Reviews
- Look for providers with proven records and client testimonials
Real-World Example: LTL in Action
A mid-sized furniture brand based in Atlanta used to ship full truckloads to its retail partners, incurring high costs even for half-empty trucks. By switching to LTL shipments, they:
- Reduced shipping costs by 38%
- Gained flexibility with more frequent shipments
- Improved delivery tracking through LTL software platforms
Result? Better inventory control and happier retail partners.
Common LTL Mistakes to Avoid
1. Incorrect Freight Classification
- Leads to billing adjustments and delays
2. Poor Packaging
- LTL shipments involve multiple handling, and secure palletizing is key
3. Not Disclosing Special Requirements
- Missing liftgate, appointment delivery, or residential delivery needs can lead to extra fees
4. Ignoring Accessorial Charges
- Charges like inside delivery, limited access, and reconsignment add up
Tips to Optimize Your LTL Shipping Strategy
- Use a Freight Broker or 3PL for better rates and services
- Consolidate Shipments where possible
- Leverage TMS (Transportation Management Software) to manage costs and logistics
- Label clearly and accurately to avoid misrouting
Final Thoughts
LTL shipments are an ideal freight solution for growing businesses looking to optimize costs, maintain flexibility, and expand their logistics footprint. As supply chains get more complex, understanding how LTL shipping works and when to use it can give your business a significant competitive edge.
Call to Action
Ready to make the switch to smarter shipping? Connect with an LTL logistics expert today or download our free LTL optimization checklist to ensure you’re shipping smarter, not harder.