LTL Trucking: The Complete Guide to LTL Transportation

LTL trucking, or less-than-truckload transportation, is a shipping method where multiple shipments share space in a single trailer. It gives businesses a cost-effective option for pallet-sized freight that’s too large for parcel but doesn’t require a full truckload.

FTL trucking is primarily used by high-volume shippers and large organizations. On the other hand, less-than-truckload (LTL) trucking is one of the most widely used freight transportation methods. It's suitable for companies that ship smaller loads and need a cost-effective balance between flexibility and speed.

Understanding how LTL trucking works helps businesses reduce costs, avoid reclassification fees, improve delivery consistency, and choose the right carriers for each lane. This can lead to lower rates, improved supply chain strength, and a reduction in transit times. 

In this guide, we’ll showcase the main characteristics of LTL trucking, the industry landscape, and what logistics teams should know about choosing an LTL partner.

What is LTL Trucking

It’s a freight transportation method used when shippers don’t require a full truckload. LTL carriers consolidate freight from multiple organizations onto one trailer. Thanks to sharing capacity, businesses can move smaller volumes at a fraction of the cost of FTL shipping. This makes LTL trucking ideal for palletized cargo, recurring shipments, or orders that don’t meet FTL size requirements. LTL trucking is also great for shippers with large volumes. They can use full truckload transportation for the majority of their shipments and LTL for low-priority freight with small volume.

How Does LTL Trucking Differ from Other Freight Modes?

LTL differs from FTL and parcel because it balances smaller shipment sizes with freight-specific handling. LTL freight moves through a hub-and-spoke network of terminals, while FTL trucking offers direct end-to-end transportation. 

Compared to parcel, LTL accommodates heavier and bulkier freight that requires forklift handling. LTL serves as the middle ground between parcel and full truckload—capable of handling heavier freight than parcel, but more flexible and cost-effective than a dedicated truck.

LTL Equipment Types

LTL carriers use various types of equipment tailored to different shipment sizes and delivery requirements. Understanding the right equipment allows shippers to avoid additional accessorial charges and ensure proper handling of their freight. Most LTL linehaul operations rely on 28-ft pup trailers that can be paired into ‘doubles’ on highways. These smaller trailers make it easier to maneuver in urban delivery environments and speed up cross-dock operations.

Trailers

Standard dry van trailers are the backbone of LTL trucking. These so-called pup trailers allow for flexible routing through dense terminal networks. Large trailers are used to move consolidated freight between regional hubs. They are designed to handle mixed freight types.

Liftgates

These hydraulic platforms are installed on the back of a truck and are used to raise freight. Liftgate-equipped trucks are essential for deliveries to locations without loading docks. Liftgates add convenience and reduce the need for manual unloading. 

Specialized Trucks

LTL trucking organizations operate various types of specialized LTL equipment. That includes temperature-controlled reefer trucks, flatbeds, and hazmat-certified trailers. Specialized trucks expand the range of freight LTL networks. This allows them to offer increased versatility for shippers with industry-specific needs.

The LTL Industry Landscape

Thanks to innovations and the increased usage of technology, the LTL industry has become very well-structured and highly competitive. As the sector plays a critical role in domestic supply chains, LTL market trends shape the logistics industry. The LTL industry is far more consolidated than the full truckload market. A handful of national carriers control a large share of the network capacity, while hundreds of regional specialists serve high-density lanes.

LTL Market Size

Rising e-commerce volumes and increased demand for more frequent inventory replenishment have been the main drivers for the expansion of the LTL sector. According to different sources, the global LTL market size is between $240 and $300 billion dollars. The US LTL market makes about $117 billion of that. LTL demand continues to grow as companies shift toward smaller, more frequent replenishment cycles, driven by e-commerce, retail restocking, and just-in-time inventory strategies.

Key Players in the LTL Market

When doing an LTL industry overview, it’s important to keep in mind that major carriers dominate the LTL landscape. That includes brands like FedEx Freight, Old Dominion Freight Line, Saia, XPO, and others. They operate extensive terminal networks across the country and overseas. Regional carriers also play an important role in LTL trucking. They offer excellent services and often faster transit times for local organizations.

LTL Market Trends

As with most sectors, LTL trucking has been shaped by technologies. API-driven visibility tools, enhanced automation, and SaaS TMS solutions like ShipperGuide are a few examples of innovations in the LTL market. Thanks to these technologies, carriers can scale their operations, while shippers can navigate pricing and transit times.

Frequently Asked Questions About LTL Trucking

As LTL trucking plays a vital role in supply chains, you might be curious to read the answers to commonly asked questions regarding less-than-truckload transportation.

How Do I Choose the Right LTL Carrier?

Choosing an LTL carrier requires evaluation of coverage, pricing, transit times, and freight handling performance. Technological integrations and capabilities are also an important factor. Partnering with the right carriers can result in improved visibility, reliable deliveries, and a reduced chance of freight damage.

What Are the Costs and Transit Times for LTL Trucking?

Freight class, weight, distance, and accessorial requirements are the main factors behind LTL costs. Regarding transit times, they are primarily influenced by a carrier’s network density and routing. Thanks to technologies, shippers can predict costs and transit times with different LTL trucking carriers.

Learn More About LTL Trucking Today

If you wish to optimize your LTL shipping strategy, ShipperGuide is the right solution. With the help of our software, shippers can compare carriers, track freight, and book shipments. Schedule a demo of our all-in-one platform today!