LTL shipping offers a cost-effective and flexible solution for businesses that involve transporting small to medium-sized quantities of goods, varying from a few pallets to a few thousand pounds. LTL stands for “less than truckload.” It is a type of shipping where a shipment of goods does not require a full truckload.
Often used by small and mid-sized businesses with insufficient freight to fill an entire truck, LTL is a cheaper alternative to hiring a whole semi truck. Or if the company doesn’t have the resources to operate its transportation logistics to reduce the overall cost of transportation.
Benefits of LTL shipping
Here are some benefits of LTL shipping:
- Cost savings
- LTL shipping is considered cost-effective since shippers are only required to pay for the space they use rather than an entire truckload. Thus, making it an affordable alternative for small and medium-sized businesses that do not have large cargo volumes.
- Flexibility
- The size and frequency of shipments are flexible with LTL shipping, and shippers can dispatch minor shipments as frequently as necessary without paying a lot of money.
- Reduced risk of damage
- Compared to full truckload shipments, the risk of damage is lower with LTL shipments because they are often packaged separately and handled carefully. This is due to the decreased amount of movement the package experiences during transit.
- Improved tracking
- With LTL carriers always providing real-time tracking information, shippers can monitor their shipment’s location and estimated arrival time. This degree of visibility enables shippers to better plan their operations and give accurate delivery estimates to their customers.
- Environmental benefits
- LTL shipping ensures fewer trucks on the road, which helps reduce carbon emissions and alleviate traffic congestion.
What’s the difference between LTL and FTL freight and small parcel shipping?
LTL (Less-Than-Truckload) Freight: For medium-sized shipments that don’t fill an entire truck
Best for:
- Shipments 150 – 15,000 lbs
- Multiple pallets but not enough to fill an entire truck
- Businesses looking to save on costs by sharing truck space
- Common Carriers: FedEx Freight, UPS Freight, XPO, Old Dominion, etc.
FTL (Full Truckload) Freight: For large shipments that require a dedicated truck
Best for:
- Over 15,000 lbs or 10+ pallets
- Time-sensitive shipments needing direct delivery
- High-value or fragile goods that require less handling
- Common Carriers: Schneider, Knight-Swift, JB Hunt, etc.
Parcel Shipping: For small individual packages under 150 lbs
Best for:
- Boxes & small packages
- E-commerce and small businesses
- Residential or business-to-business shipping
- Common Carriers: FedEx, UPS, USPS, DHL.
| Feature | LTL Freight | FTL Freight | Parcel Shipping |
|---|---|---|---|
| Weight | 150 – 15,000 lbs | 15,000+ lbs | Up to 150 lbs |
| Cost | Lower than FTL | Higher, but direct delivery | Cheapest for small shipments |
| Transit Time | Slower (multiple stops) | Faster (direct route) | Varies (1-5+ days) |
| Handling | Multiple transfers | Minimal handling | High (sorting centers) |
| Best For | Pallets, business freight | Large shipments | Small packages |
Key Cost Factors for LTL Shipping
- Distance – Longer hauls cost more.
- Freight Class – Determined by NMFC codes (lower class = lower cost).
- Weight & Dimensions – Heavier/larger shipments increase the cost.
- Freight Density – Space taken in the truck affects pricing.
- Carrier & Service Level – Different LTL carriers offer varying rates.
- Accessorial Fees – Additional services (liftgate, residential delivery, inside delivery, etc.).
- Fuel Surcharge – Adjusts based on fuel market conditions.
Typical LTL Shipping Costs
- Short haul (0-500 miles) → $100 – $400
- Medium haul (500-1,500 miles) → $400 – $800
- Long haul (1,500+ miles) → $800+
- Per Hundredweight (CWT) Pricing → $25 – $150 per 100 lbs, depending on class & distance
Typically, an LTL freight shipment costs around $50/hundred pounds in ranges between 0 to 499 pounds. While the cost per hundred for shipments between 500 to 999 pounds drops to $40/per hundred, offering discounts for even heavier loads.
Finally, the choice between LTL and FTL shipping will depend on the shipper’s specific needs, including the shipment size, the budget, and the desired delivery time.
