Carrier Terms Intermediate

LTL Shipping (Less Than Truckload)

Also known as: LTL, Less Than Load, LTL Freight

Definition

LTL (Less Than Truckload) shipping is a freight service where your shipment shares truck space with cargo from other shippers. It’s the sweet spot between parcel shipping (under 150 lbs) and full truckload shipping—typically used for shipments between 150 and 10,000 lbs.

When to Use LTL

LTL is ideal when your shipment is:

  • Too heavy for parcel - Over 150 lbs
  • Too large for parcel - Exceeds size limits
  • Not enough for FTL - Less than ~10,000 lbs or 10 pallets
  • Palletized freight - Goods on pallets or skids

How LTL Works

  1. Pickup - Carrier collects from your location
  2. Local terminal - Shipment goes to nearby hub
  3. Consolidation - Combined with other LTL freight
  4. Line haul - Travels to destination region
  5. Destination terminal - Sorted at regional hub
  6. Delivery - Final delivery to consignee

Your freight typically touches 3-5 facilities and may be loaded/unloaded multiple times.

LTL Pricing Factors

LTL rates depend on:

Factor Impact
Freight class Higher class = higher rate
Weight Heavier = cheaper per pound (usually)
Distance Based on ZIP-to-ZIP lanes
Density More dense = lower class = cheaper
Accessorials Additional services cost extra

LTL vs. Parcel vs. FTL

Criteria Parcel LTL FTL
Weight <150 lbs 150-10,000 lbs 10,000+ lbs
Transit 1-5 days 3-10 days 1-5 days
Handling Multiple Multiple Minimal
Pricing Per package Per cwt/class Per truck
Speed Faster Moderate Fast

Common LTL Carriers

  • National: FedEx Freight, UPS Freight, XPO Logistics, Estes, Old Dominion
  • Regional: Varies by area; often cheaper for nearby destinations

LTL Best Practices

  1. Accurate weight and dimensions - Reweighs result in fees
  2. Correct freight class - Reclassification is costly
  3. Proper packaging - Goods will be handled multiple times
  4. Clear labels - Every pallet needs shipper/consignee info
  5. Complete BOL - Mistakes cause delays
  6. Lift gate if needed - Request if no dock at delivery
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