LTL carriers move palletized freight through shared truck networks, allowing shippers to pay only for the space they use. Since each carrier operates differently, whether it be based on region, network size, service speed, and specialization, choosing the wrong type can lead to avoidable delays, claims, and higher costs.
For example, freight moving from Chicago to Cincinnati often performs better with a Midwest regional carrier, while multi-region distribution networks depend on national carriers with deep terminal density.When it comes to choosing LTL carriers, organizations need to be familiar with the main types of LTL freight carriers and how they operate.
This guide will shed some light on how to choose the right less-than-truckload transportation provider and what you need to know regarding their business model.
There are many ways to differentiate LTL carriers into different groups. The most common one is their geographic coverage. It’s the biggest factor behind the various operational models. Knowing the main distinctions can help shippers find the right LTL provider based on their freight profile and transportation needs.
Regional LTL carriers operate within a specific geographic area. This is typically a single state or a group of nearby states. These carriers offer fast, predictable one- to two-day transit times because they operate within compact networks and have tight control over local linehaul schedules.
Companies that need frequent but short-haul shipments usually partner with this LTL carrier type. Long-haul national carriers typically move freight through 2–4 terminals, which affects transit times and damage risk. They also offer competitive pricing and more flexible pickups and deliveries. Regional LTL carriers are ideal for shippers with dense freight patterns within the Midwest, Southeast, or Northeast.
National LTL carriers provide coast-to-coast coverage across the United States. They typically manage dozens or even hundreds of terminals, which allows them to consolidate freight at scale and keep long-haul costs predictable. National LTL carriers specialize in long-haul routes and complex supply chains.
As such, they are a great option for businesses that need advanced tracking capabilities, multi-regional shipping, and dependable service across a broad network. Using national LTL carriers is a common choice for enterprise-level shippers moving freight between distribution centers across multiple regions.
Interregional service providers are used by shippers expanding into adjacent regions where neither a single regional nor national carrier fits. They integrate broad multi-regional networks and leverage partnerships with other organizations. Partnering with interregional service providers is suitable for businesses that need both wide coverage and competitive pricing. Companies that are expanding their operations and distribution zones to adjacent areas are also likely to partner with interregional LTL carriers.
Carriers that specialize in less-than-truckload shipping offer different service levels. They are designed to accommodate customer requirements related to handling needs, shipment characteristics, or delivery speed.
Standard carrier services are the most common offering by LTL carriers. It covers day-to-day freight movements, has predictable pricing, and reliable transit times. This service is primarily used for regular and non-urgent shipments that don’t require special handling, such as regular replenishment, e-commerce restocks, or manufacturing freight that doesn’t require strict delivery windows.
Standard LTL services leverage a carrier’s network and consolidation capabilities. They’re most common among organizations in retail, manufacturing, consumer goods, and other sectors that use LTL transportation.
When it comes to time-sensitive freight like food or expensive goods that need predictable transit times, companies partner with LTL carriers that offer expedited services. They are also ideal for urgent orders or organizations that need priority loading. While expedited LTL comes at a premium cost, it helps shippers avoid out-of-stock events, production downtime, and chargebacks tied to missed delivery windows.
Hazmat freight, white-glove home delivery, and temperature-sensitive goods often fall under this category. They are primarily used by companies that need to ensure products remain compliant and properly managed.
Understanding how LTL carrier networks function allows shippers to choose the right partner and understand pricing, reliability, and transit times.
Carriers often use the LTL hub-and-spoke terminal network model. This allows them to manage freight efficiently. Handling pickups and deliveries is done at local terminals, while a centralized one manages long-haul consolidation and sorting.
With the hub-and-spoke network, carriers consolidate many small shipments into full trailer loads between terminals, which reduces long-haul costs while maintaining high network density. Terminal networks add more handling steps. In fact, it may be handled eight to twelve times as it moves from origin terminal, to hub, to destination terminal.
That’s why proper documentation and packaging are a must for LTL shipments. For example, a pallet moving from Boston to Dallas may travel through 4–6 terminals across the carrier’s hubs, increasing touchpoints and the importance of packaging.
Consolidation is a primary characteristic of LTL carrier operations. Logistics companies that specialize in LTL combine multiple shippers’ freight into a single trailer to reduce costs and maximize efficiency. Freight is grouped based on destination and loaded onto trucks.
Consolidation is why LTL is cheaper than parcel for shipments above 150 lbs but cheaper than FTL for freight under 10,000 lbs. Thanks to consolidation, LTL carrier operations can offer affordable pricing even for small-volume shippers.
LTL carriers leverage advanced route optimization to make their operations as efficient as possible. Route optimization also makes costs for shippers more affordable, reduces transit times, and improves service levels. Route optimization influences pickup times, linehaul scheduling, and when freight arrives at the destination terminal—directly impacting service consistency.
If you’re curious about LTL carrier operations, the following answers to commonly asked questions might help you.
An LTL carrier is a logistics company that moves freight weighing too much for parcel shipping but not enough to use full truckload shipping services. These carriers consolidate shipments from various customers into a single trailer and transport them through a network of terminals.
There are various regional and national carriers that offer high-end services to shippers. Depending on requirements such as coverage, region, and freight profile, organizations might choose different transportation providers. For short-haul freight, shippers often choose regional carriers.
For national distribution center networks, national carriers tend to perform better. The best LTL carrier depends on coverage, service type, freight class, and lane density. A regional carrier may outperform a national carrier on short-haul lanes, while national carriers are better suited for multi-region distribution.
As of recent rankings, FedEx Freight remains the largest U.S. LTL carrier by revenue and network size. Large carriers handle thousands of shipments per day and offer the most extensive terminal coverage. XPO and FedEx are among the largest LTL carriers in the country. They offer their services to a vast array of regional and nationwide shippers.
If you’re looking for a solution that makes it easy to find and compare LTL carriers, ShipperGuide is the right transportation management software for you. ShipperGuide helps shippers automate LTL carrier selection, validate freight class, compare contract and spot rates in one view, and automatically flag shipments that need attention. Schedule a demo and see how ShipperGuide can help you build strong partnerships with LTL carriers.