According to the American Trucking Associations (ATA), trucks move more than 72% of the nation’s freight by weight in the United States. Within that ecosystem, Less Than Truckload shipping plays a vital role for businesses that do not need an entire trailer.
This guide will walk you through the fundamentals, so you can make informed transportation decisions for your business with confidence. Here’s what you need to know.
What is LTL shipping?
LTL freight meaning: Less than a truckload (LTL) freight refers to the transportation of products or goods that do not require a full truckload.
These smaller shipments are consolidated with others, allowing multiple loads to move efficiently on a single trailer. LTL freight shipments are usually arranged on pallets and range anywhere from 150 to 10,000 pounds.
LTL carriers specialize in optimizing their loads to move more goods for more shippers efficiently. Many businesses choose this model because it offers flexibility and cost control.
In simple terms, LTL in shipping is a transportation mode that combines freight from multiple shippers on the same trailer. It is heavier and larger than parcel shipments, palletized, and does not require the full capacity of a truck.
Many national carriers operate a hub-and-spoke system similar to aviation, where air cargo moves from terminal to terminal, where shipments are consolidated with others heading toward the same final destination. (e.g., Chicago → Dallas → Miami).
This approach keeps freight flowing continuously, reduces empty miles, and allows customers to pay only for the space they use. It also provides more rate stability compared to full truckload pricing, which can fluctuate significantly with market conditions.
How does LTL shipping work
Understanding how LTL shipping works begins with consolidation. Partial loads from multiple companies are combined into full multi-stop truckloads. Pricing is based on the space your freight occupies, the freight class, weight, and origin and destination points.
Shippers can choose standard, expedited, or guaranteed transit options. Additional services – known as accessorials – may include liftgate service, inside delivery, residential pickup, or appointment scheduling. These services add flexibility but may increase cost.
LTL in trucking is structured around efficiency. Each terminal handles freight transfers and routing, ensuring shipments move through the network in an organized, traceable way.
What is the difference between LTL and FTL freight?
The most direct way to understand what is the difference between LTL and FTL freight is by looking at trailer utilization and shipment size.
LTL truckload is used when freight does not require the entire trailer. FTL (Full Truckload) dedicates the full trailer to a single shipment from origin to destination without terminal transfers.
If you are evaluating LTL and FTL freight, consider the following:
LTL vs. FTL comparison table
| Factor |
LTL Freight |
FTL Freight |
| Trailer Use |
Shared with multiple shippers |
Dedicated to one shipper |
| Shipment Size |
150–10,000 lbs |
Typically 10,000+ lbs or a full trailer |
| Cost Structure |
Pay for space used |
Pay for the entire trailer |
| Transit Time |
May include terminal stops |
Direct point-to-point |
| Handling |
Multiple transfers possible |
Minimal handling |
| Best For |
Smaller, palletized freight |
Large or high-volume loads |
ℹ️ For many businesses, the right choice depends on shipment frequency, product sensitivity, and required delivery timelines.
3 Advantages of LTL shipping
1. Pay only for what you use
LTL freight combines multiple smaller shipments to fully utilize trailer capacity. Since your freight occupies only part of the trailer, your cost reflects only the space you require. This ensures your cost is significantly lower than reserving a full trailer when it is not needed. This model supports smarter cost allocation across your transportation budget.
2. Aligned with eCom fulfillment
E-commerce fulfillment requires agility. LTL freight enables distribution centers and suppliers to replenish inventory efficiently without waiting to accumulate a full trailer.
For growing brands, less-than-truckload shipments allow inventory to reach multiple destinations without overcommitting freight spend. It supports scalable expansion across regions while maintaining operational control.
3. Accessible to SMEs
Small and mid-sized businesses benefit from professional freight networks without absorbing unnecessary overhead. Instead of paying for empty trailer space, companies can move palletized freight affordably and consistently. This model levels the playing field for smaller shippers competing in larger markets.
Considerations in LTL Transport
Delivery timelines
Flexibility and cost efficiency come with trade-offs. Since shipments move through multiple terminals, delivery may take longer than a direct truckload move. If transit speed is critical, plan accordingly or consider guaranteed service options.
Capacity planning
Not all transportation providers specialize in LTL. Securing dependable capacity at competitive rates can require experience and established relationships. Partnering with a knowledgeable provider of domestic transportation simplifies the process and ensures access to vetted carrier networks.
Accuracy in freight information
Precision matters in LTL shipping. Weight, dimensions, freight class, and delivery requirements directly influence pricing and performance. Incomplete or inaccurate data may lead to reclassification fees or delays. Taking time to confirm shipment specifics ensures smoother execution.
Bring structure to your LTL shipments
Efficient cost structures, broad service networks, and flexible service levels make LTL a strategic component of modern supply chains. But LTL is most effective when it’s managed with precision.
At VinWorld, we combine broad carrier access, disciplined execution, and real-time visibility to keep your freight moving without surprises. When your shipment is too large for a parcel but not quite a full truckload, we design the right consolidation strategy to control cost, protect transit times, and reduce risk. With us, you gain clarity, stability, and a freight forwarder focused on your outcomes.
Partner with us to create a more controlled, efficient approach to your LTL freight. Request a quote
FAQs
What does LTL stand for in trucking?
LTL stands for “Less Than Truckload.” It refers to freight shipments that do not require a trailer's full capacity. Multiple shippers share space on the same truck, each paying only for the portion they use.
How many pallets are considered LTL?
Typically, shipments ranging from one to six pallets fall into the LTL category. However, weight, dimensions, and total cubic space ultimately determine classification rather than pallet count alone.
Why is LTL so expensive?
LTL may appear costly because pricing factors include freight class, handling, terminal transfers, and accessorial services. However, compared to reserving a full trailer unnecessarily, it remains cost-efficient for smaller shipments.
What is an LTL carrier?
An LTL carrier is a transportation provider specializing in consolidating multiple smaller shipments into shared truckloads. They operate terminal networks that route freight efficiently between origin and destination points.
Who pays for LTL shipping?
Payment responsibility depends on shipping terms. The shipper, consignee, or a third party may cover charges based on contractual agreements outlined in the Bill of Lading.
How long does LTL shipping take?
Transit time varies based on distance and terminal routing. Regional shipments may arrive within one to three days, while cross-country moves typically require three to six business days. Expedited options are also available.
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