Less-than-truckload (LTL) shipping is a freight method where multiple shippers share space in the same trailer. Instead of paying for a full truck, you only pay for the portion of space and weight your shipment uses. For example, a shipper moving three to six pallets to a distribution center can save significantly by sharing a trailer with other nearby shipments.
With increased competitiveness and pressure to optimize transportation costs, understanding how LTL shipping works is crucial. This guide breaks down the main benefits and requirements of less-than-truckload transportation.
Thanks to LTL shipping, organizations can move small loads without paying for a full truck. By combining cost efficiency with operational flexibility, LTL carriers can support modern supply chains of both small and large shippers. Let’s examine some of the main LTL advantages.
LTL helps reduce transportation costs by allowing shippers to share trailer space with other companies. Instead of paying for unused capacity, organizations only pay for the portion of space and weight their freight requires.
Retailers who often have replenishment orders, manufacturers shipping partial loads, or other businesses that frequently send small shipments can all benefit from LTL shipping. By consolidating freight, the overall transportation cost is reduced. For example, a retailer shipping 4 pallets weekly may save 25–40% by using LTL instead of booking dedicated truckload capacity.
Since LTL carriers support a wide range of shipment sizes, delivery windows, and service options, this type of transportation service offers excellent flexibility. This is particularly helpful for businesses with seasonal patterns, fluctuating demand, and rapid changes in inventory. Organizations that manage multiple distribution points can also benefit from the agility offered by LTL freight shipping. For example, businesses with seasonal spikes, like beverage producers during summer or home goods brands during Q4, depend on LTL to flex capacity quickly.
As LTL shipping consolidates multiple shipments into a single vehicle, it decreases the number of partially filled trucks on the road. That reduces carbon emissions, fuel usage, and transportation waste as a whole.
Companies in manufacturing or retail can achieve their sustainability goals by using LTL shipping as a way to shrink environmental impact. Carriers estimate that consolidated LTL loads reduce CO₂ emissions by up to 30% compared to partially filled truckloads.
What is LTL shipping? Is it simply transportation? Not really. By partnering with LTL carriers, shippers get access to various specialized services. These include liftgate delivery, inside delivery, appointment scheduling, and tailored options for specific product types and sectors. Food, beverage, consumer packaged goods, and other sectors that have unique handling requirements might benefit from these services to ensure compliance.
LTL pricing is closely tied to the National Motor Freight Classification system (NMFC). Freight class is determined by density (weight per cubic foot), handling difficulty, stowability, and liability risk. For example, a dense load of canned goods may fall into Class 55, while fragile home décor might classify as Class 175. In order to avoid reclassification charges and improve quote accuracy, organizations need to understand LTL freight classes.
Freight classes range from Class 50 (low-cost freight that’s very dense) to Class 500 (fragile, light, and bulky freight). Costs go up with higher classes. Carriers that specialize in LTL freight shipping use these classifications to determine base rates and service requirements.
Choosing the right class is paramount as misclassifications can lead to costly fees and delays. Referencing NMFC codes allows shippers in manufacturing, retail, and other sectors to get predictable pricing and excellent cost control.
In order to prevent damage and speed up handling, there are certain LTL freight shipping requirements related to documentation, palletizing, and packaging.
Proper packaging is essential for LTL shipments. That’s because freight is handled multiple times between terminals. Thus, using sturdy boxes and other protective materials is a must.Strong packaging minimizes damage risk, especially since LTL freight may be handled six to twelve times as it moves through terminals. Use double-wall boxes for fragile goods and avoid loose fill like foam peanuts, which shift during handling.
Thanks to palletizing, freight is organized into stable units that LTL carriers can handle efficiently. Shippers must use pallets that stack boxes evenly to avoid any damage. Shrink wrap, corner boards, and strapping also help to keep freight stable during transit. Improper palletizing leads to increased handling time, a higher chance of misroutes, and additional rework within terminals. For example, freight that overhangs the pallet edges is at high risk of crushing or puncture during cross-dock transfers.
The bill of lading (BOL) is an important document in LTL shipping. It needs to include accurate freight description, weight, pallet count, NMFC codes, and accessorial requirements. Pickup and delivery information is also included in the BOL. The document needs to be readable and organized properly. A complete BOL reduces rework time at terminals and lowers the chance of unnecessary reweighs or reclassifications.
If you want to know more about LTL freight shipping, check out the answers to some common questions regarding LTL transportation below.
Yes, LTL shipping is typically cheaper than FTL shipping. That’s because shippers don’t pay for unused space and share the capacity with other shippers. However, FTL shipping is more cost-efficient for high-volume shippers compared to LTL. LTL is usually more cost-effective for shipments between 150 and 10,000 lbs.
Thanks to consolidating multiple shippers and maximizing trailer space efficiently, LTL carriers can increase their profits. These organizations operate a network where shipments are sorted, routed, and transferred. Base rates, fuel surcharges, and accessorial fees are the main ways for LTL carriers to make money. Carriers optimize profitability by maximizing trailer fill using consolidation, density-based pricing, and minimizing empty miles.
Logistics teams can manage their LTL shipments efficiently with the help of an innovative transportation management system. ShipperGuide centralizes LTL quoting, validates freight class automatically, eliminates manual rate shopping, and reduces the chance of reweighs or reclassifications.
Teams gain instant access to contract and spot LTL rates from top carriers and can book shipments within seconds. Schedule a demo today and see why other organizations have chosen ShipperGuide to transform their shipping strategy.