LTL freight shipping defined
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LTL freight shipping definition
Less than truckload freight shipping (LTL) is used for the transportation of small freight or when freight doesn’t require the use of an entire trailer. This shipping method can be used when freight weighs between 150 and 15,000 pounds.
When shipping LTL, the shipper pays for the portion of a standard truck trailer their freight occupies, while other shippers and their shipments fill the unoccupied space. There are a number of benefits to shipping via LTL.
Benefits of LTL (Less Than Truckload) Shipping
- Reduces costs: When booking an LTL shipment, you only pay for the portion of the trailer used. The other companies using the trailer space cover the rest.
- Increase security: Most LTL shipments are packaged onto freight shipping pallets before being loaded onto a truck. One well-packaged pallet has a better chance of remaining secure than shipments with multiple, smaller handling units.
- Add service options: When shipping via LTL, you gain access to special services like liftgates and inside pickup and delivery.
- Track shipments: LTL carriers offer tracking capabilities through the bill of lading (BOL) number, PRO number, PO number, shipment reference number, or pick up date range.
Factors that determine LTL quotes and shipping rates
1. Shipping locations
The further the distance something must travel, the higher the cost it is to ship.
2. Accurate dimensions
The dimensions, size, and weight of the shipment help ensure accurate quotes.
3. Item type
An LTL shipment that requires special handling or equipment (perishables, fragile, hazardous items) will lead to higher costs.
How to lower your LTL freight rates
See four simple, cost-effective strategies that can help you save on shipping LTL freight.
When to choose less than truckload (LTL) shipping
The following situations make the most sense for LTL shipping:- 1. Small shipments: When your shipment is too small to fill an entire truck, trust LTL shipping experts to consolidate and optimize for you. Benefit from shared transportation costs with other shippers utilizing the same truck—save money by paying only for the space your shipment occupies.
- 2. Flexible delivery timing: Opt for LTL if your shipment isn't time-sensitive and can accommodate flexible delivery times. LTL carriers consolidate shipments, which may take longer than a direct route but offers flexibility.
- 3. Local or regional moves: LTL is the preferred choice for regional or local shipments, especially when the destination is close.
- 4. Limited storage: If your business has limited storage space and can't handle large shipments, with LTL you can ship smaller quantities more frequently, reducing the need for extensive storage.
- 5. Sustainability goals: LTL shipping is eco-friendly as it consolidates multiple shipments onto a single truck, reducing the carbon footprint compared to individual shipments.
LTL shipping may not suit every situation. If your shipment is time-sensitive, requires specific handling conditions, or is exceptionally large, explore alternative options like expedited, or full truckload (FTL) shipping. Additionally, collaborate with reputable carriers to ensure the reliability and safety of your shipments.
Preparing LTL (less than truckload) shipments
1. Dimensions
Round up to the next inch when measuring the length, width, and height of a shipment. Accurate dimensions help carriers maximize their capacity and you can better avoid adjustment fees.
2. Documentation
Complete the bill of lading as accurately as possible and give to the carrier upon arrival. This document acts as a receipt for the goods being shipped.
3. Packaging and labeling
Load goods onto pallets to condense and protect your shipments. Heavy items should be placed on the bottom of pallets or crates and a label should be placed on the side.
Additional LTL shipping services
- Expedited: When you need goods to arrive at their destination more quickly than the standard transit time.
- Liftgate: Used when freight exceeds 100 pounds and the receiving location does not have a dock for the shipment to be moved directly off the truck.
- Limited access: Required for deliveries heading to locations with limited access for LTL carriers, such as construction sites, camps, rural locations, strip malls, etc.
- Inside pickup and delivery: If the carrier needs to obtain or deliver the freight by entering the building, you will need to ask for this service.
Common LTL shipping questions
Get detailed answers to common questions about LTL freight, including its definition, benefits, and how to prepare LTL shipments, factors that influence LTL freight rates and offers tips to help lower your LTL shipping costs.
What is the meaning of LTL?
LTL stands for “Less Than Truckload”, a freight shipping term. It refers to transporting relatively small freight loads (between 150 and 15,000 pounds) that don’t require a full 48 foot or 53-foot truck trailer.
In LTL shipping, multiple shippers share space on the same truck, and each only pays for the portion of the trailer their cargo occupies. This allows businesses (especially small ones) to ship smaller quantities cost-effectively without booking an entire truck.
How does LTL work?
LTL shipping works by consolidating multiple small shipments onto one truck for transport. An LTL carrier will pick up your freight (usually palletized) and bring it to a local terminal. There, it’s grouped with other LTL shipments moving in the same direction and loaded onto linehaul trucks. The freight travels through a hub-and-spoke network, it may stop at one or more regional distribution hubs for sorting before reaching the destination terminal for final delivery. Because your shipment shares truck space and makes stops with others, transit times are a bit longer than a direct full truckload, but it greatly lowers the cost for shipping small loads.
How is LTL freight priced?
The carrier quotes for LTL freight shipments are based on several factors including distance the shipment needs to travel, size and freight class of the shipment (dimensions and weight), and extra handling or equipment the freight requires, such as inside delivery or liftgate needs for loading/unloading. Requesting options like expedited and guaranteed delivery will also affect freight shipment quotes.
Do I need to know my shipment’s freight class?
Freight class is a system used in the LTL industry to categorize freight based on four factors: density, stowability, handling, and liability. Traditionally, determining freight class for a shipment involved locating an item’s specific National Motor Freight Classification (NMFC) number, then referencing long lists that showed the applicable freight class for each item. You can now skip this hassle by using our free online quoting tool, which uses the weight and dimensions of your freight to automatically determine and assign a dimensional freight class to your shipment.
What’s the difference between LTL and FTL?
LTL means Less Than Truckload, while FTL stands for Full Truckload. An FTL shipment uses an entire truck for one shipper’s freight, typically for large loads that fill a trailer. By contrast, LTL shipments combine freight from multiple shippers in one truck; you share trailer space with other loads. Small businesses often use LTL for shipping a few pallets (since you only pay for your portion of the truck), whereas FTL is used when you have enough cargo to utilize most or all of a truck’s capacity.
How many pallets are considered LTL?
Most LTL shipments consist of 1 to 6 pallets in size. In fact, many carriers (per NMFTA guidelines) set an LTL pallet limit around five or six pallets. Anything above that (for example, 8+ pallets or over about 12 linear feet of trailer space) might be treated as a volume LTL or even a full truckload shipment. As a rule of thumb, if your freight only takes up a small section of a trailer (instead of the whole 26–30 pallet capacity of a 48' and 53′ truck), it falls under LTL shipping.
Should I ship parcel or LTL?
If you are shipping over 150 pounds, consider LTL. Shipping LTL with a freight service provider means competitive rates and expert advice.
What are the benefits of LTL shipping for small businesses?
LTL shipping offers several key benefits for small businesses. First, it’s cost-effective – you only pay for the portion of the trailer your freight uses, which significantly reduces shipping costs for small loads. This means a small business can ship out a few pallets or boxes without paying for a whole truck. Second, LTL allows flexibility and frequent shipping; you can send products as needed (instead of waiting to accumulate a full truckload), helping you manage inventory and meet customer demand more efficiently.
Additionally, LTL carriers provide services like liftgate delivery, tracking, and residential or inside delivery which are useful if you lack loading docks or have special delivery needs. Overall, LTL lets small businesses access professional freight transport and broad carrier networks without the large volume commitments that FTL requires.
How fast is LTL freight shipping?
LTL’s hub and spoke model of consolidating freight typically leads to longer transit times than full truckload services. However, guaranteed and expedited services are often available.
What happens during the pickup of my LTL shipment?
For a smooth transfer of your LTL freight during pickup, give the driver your bill of lading. And remember, unless previously specified (like in inside pickup and delivery), your driver won’t be able to help load, you’ll have to do it yourself. Watch the video below to learn more about what to expect.
What is the weight limit for LTL shipments?
Generally, LTL shipments range from about 150 pounds up to 15,000 pounds in weight. Most carriers set an upper weight threshold around 15,000 lbs for standard LTL service.
If your freight exceeds 15,000 pounds (or approximately 7 tons), it’s no longer considered LTL – at that point you may need to use a full truckload or a specialized volume LTL rate. There’s no strict universal cutoff, but as the shipment weight enters five digits (in pounds), carriers will usually treat it as too heavy for the normal LTL network. On the lower end, anything under ~150 lbs is usually handled by small parcel carriers, not LTL.
What are LTL (less than truckload) freight carriers?
Less than truckload (LTL) freight carriers are companies that specialize in transporting smaller shipments that don't require a full truckload. These carriers consolidate multiple shipments from different customers into one truck, making it a cost-effective and efficient option for shipping goods that weigh more than 150 lbs but don't fill an entire trailer.
Is Freightquote an LTL freight company?
Freightquote is the nation’s largest online freight service provider, and a licensed transportation property broker. We work with the largest network of carriers to negotiate the best LTL freight rates for shippers.
Additional resources
- What is freight shipping?
- How can I ensure my LTL quote is accurate?
- What is the difference between LTL and full truckload?
- What is the difference between LTL and parcel shipping?
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Looking to ship more than just LTL freight? Explore Freightquote’s most popular freight shipping services below.