LTL freight, short for ‘Less Than Truckload’ freight, refers to a shipping method where shipments from multiple businesses share space on the same truck. This method is ideal for businesses that need to move goods without filling an entire truck.
In this guide, we’ll explain LTL freight, how it operates, and its benefits.
Key Takeaways
-
LTL freight, or Less Than Truckload shipping, consolidates multiple small shipments into one truck, optimizing space and reducing costs while remaining environmentally friendly.
-
LTL freight offers cost-effectiveness, flexibility for small shipments, and a reduced carbon footprint, making it suitable for businesses with varying shipping needs.
-
Choosing the right LTL carrier involves evaluating service reliability, transit times, and customer reviews. It also involves ensuring proper packaging and utilizing tracking technology to enhance shipment management.
What is LTL Freight?
LTL stands for Less Than Truckload, a shipping method designed for goods that occupy less than a full truckload. Unlike parcel delivery, which handles small packages, or full truckload shipping, where an entire truck is dedicated to a single shipment, LTL freight lies somewhere in between.
LTL shipping involves consolidating multiple partial loads from different shippers to fill a truck, optimizing space and reducing costs. Its purpose is efficiency, making the most of the available space and reducing costs.
Combining smaller shipments into full truckloads enables shippers to share truck space and pay only for what they use. This approach is both cost-effective and environmentally friendly, as it reduces the number of trucks on the road.
LTL freight is ideal for shipping goods too large for parcel delivery but does not require an entire truck, making it perfect for businesses with moderate shipping needs.
What Are The Benefits of LTL Freight Shipping?
LTL freight shipping offers numerous benefits, including cost-effectiveness, flexibility for small shipments, and significant environmental benefits.
These benefits significantly enhance the efficiency and sustainability of shipping operations.
Cost-Effective Solution
A key advantage of LTL freight is its cost-effectiveness. Sharing truck space and shipping costs makes it more economical than full truckload shipping because pricing is based on the space used, allowing you to pay only for what you need.
This flexibility helps manage shipping budgets more effectively, especially for low-volume shippers.
Flexibility for Small Shipments
Unlike full truckload shipping, LTL allows you to ship goods without filling an entire truck. This flexibility is ideal for businesses that don’t consistently ship large volumes, allowing you to use professional services without the high cost of a full truck.
LTL shipping is also ideal for non-time-critical shipments. Businesses can schedule shipments as needed, meeting delivery timelines without the pressure of filling a truck.
Environmental Advantages
LTL freight shipping offers significant environmental benefits by reducing the number of trucks on the road.
By consolidating multiple shipments into a single truck, LTL shipping minimizes fuel consumption and lowers emissions, contributing to a smaller carbon footprint. It also helps you take a step towards adopting more sustainable practices, which supports green initiatives without sacrificing service quality.
How Does LTL Freight Work?

LTL freight shipping involves several key steps for efficient consolidation and delivery. It’s similar to FTL and other shipping methods, except it includes packages from multiple shippers.
The Less Than Truckload freight shipping process includes:
-
Pickup: The shipper schedules a pickup with the LTL carrier, and the freight is collected from the shipper’s location.
-
Consolidation at a Terminal: Upon arrival at the carrier’s terminal, the freight is weighed, measured, and sorted. It is then consolidated with other shipments heading to similar destinations.
-
Linehaul Transportation: The consolidated freight is transported via a central hub or a series of terminals to reach a regional terminal closer to the final destination.
-
Deconsolidation at Destination Terminal: The freight is separated from other shipments at the destination terminal and prepared for final delivery.
-
Final Delivery: The freight is loaded onto local delivery trucks and transported to the consignee’s address, where it is received and signed for.
LTL freight shipping is a simple process that lowers costs and your environmental footprint. However, you have to find available space to use to deliver your packages and coordinate the logistics–and that’s where other parties come in.
Role of Freight Brokers and Third-Party Logistics
Freight brokers are integral to LTL shipping because they make shared shipping possible. They connect shippers with available capacity, negotiate rates, and ensure timely delivery. Using online platforms, freight brokers also help shippers compare carriers and select the best option for maximum savings.
Third-party logistics providers (3PLs) also facilitate LTL freight shipping. They manage truck space, schedule routes, and provide real-time notifications throughout the process to ensure efficient and effective handling of LTL shipments.
How Are LTL Freight Rates Determined?

One of the main benefits of LTL freight shipping is its lower costs, which depend on several factors.
These factors include:
-
NMFC Categorization (Package Measurements): The National Motor Freight Classification (NMFC) categorization of the package is determined by the shipment’s size, weight, and density. Smaller, lighter packages generally cost less than larger, heavier ones.
-
Accessorial Costs: Additional services, such as liftgate delivery, residential delivery, or inside delivery, may incur extra charges.
-
Distance and Location: The distance between the pickup and delivery points and the specific locations involved can influence the cost, with longer distances and less accessible locations costing more.
The costs will also depend on your negotiated LTL freight rate and your carrier, as they set the cost to ship LTL freight packages.
How to Choose the Right LTL Carrier
Carriers play the most critical role in your shipping costs and service quality, so you must choose the right carrier to ensure reliable and cost-effective shipping.
When choosing the right carrier for your business, consider:
-
Service Coverage
-
Transit Times
-
Costs and Fees
-
Reliability and Reputation
-
Customer Service
-
Tracking Capabilities
-
Specialized Services
-
Flexibility
Your goal should be to find a carrier that meets all of your needs and you can rely on for the best rates, which may require shopping around or the help of a freight broker.
How to Package and Prepare Shipments for LTL Freight
Packages must arrive free of damage and according to the original schedule, so packaging and preparing your shipments is essential for ensuring the safe and timely delivery of LTL shipments.
You can keep your shipments safe and on time by:
-
Using Pallets, Boxes, or Crates: Choose durable pallets for consolidating multiple items, sturdy boxes for general shipping needs, and wooden crates for heavy or fragile items that require extra protection.
-
Minimizing Movement with Proper Packaging Materials: Utilize bubble wrap, foam, packing peanuts, and void fillers to cushion and secure items inside packages, preventing movement and reducing the risk of damage.
-
Stacking and Loading Weight Correctly: Distribute weight evenly on pallets, placing heavier items at the bottom and lighter ones on top. Ensure the stack height adheres to carrier guidelines, typically not exceeding 48-60 inches, and use straps or bands to secure the load.
-
Clearly Labeling Shipments: Attach clear and visible labels on each package, including destination and return addresses, and any special handling instructions. Ensure a copy of the Bill of Lading (BOL) is attached to the shipment, detailing the contents and other critical information.
Following best practices for packaging shipments reduces the likelihood of damage and improves shipping efficiency.
How to Effectively Track and Manage LTL Shipments
To ensure timely delivery and service quality, you must be able to track and manage your LTL shipments so you can identify improvements, estimate delivery times, and provide a better customer experience.
Technology is key to effectively tracking and managing LTL shipments, which includes carrier tracking systems and third-party solutions. Real-time tracking systems give you visibility into LTL shipment locations and estimated delivery times, enhancing logistics management. These systems also allow you to monitor shipments, manage logistics, and improve customer service.
Leveraging these technologies ensures efficient management and timely delivery of LTL shipments.
How to Overcome Common LTL Freight Shipping Challenges
Shipping LTL freight presents challenges that can lead to higher costs and lower quality service, such as freight damage, delays, and unexpected costs. You must do everything you can to avoid damages or service failures.
By understanding and addressing these issues, you can enhance the efficiency and reliability of your LTL freight operations.
Proper Packaging and Handling
Proper packaging and handling are critical to minimizing damage risk during LTL shipping. You must use the right materials, pack each shipment securely, and ensure packages are handled correctly.
LTL freight shipments can weigh from 100 to 20,000 pounds, so knowing specific weight guidelines is important because it will impact what materials you can use for shipping and packing. You may also consider using a packing base to stabilize the load during transport, which is helpful for shipments facing multiple loadings and unloadings.
Stretch wrapping is another valuable practice for securing pallets, with each layer overlapping by at least 50% for stability. Alternatively, you can use bands or other materials to secure them.
In terms of handling, fragile and temperature-sensitive items should be packed separately and labeled for appropriate handling during transit. Otherwise, they may spoil or break during transport.
Choosing Reliable Carriers
Choosing reliable LTL carriers ensures timely deliveries and optimal service quality. Assessing a carrier’s communication and performance history provides insights into their reliability, which you can find through reviews or by auditing their performance for things like on-time delivery records and claims history, which helps select a dependable carrier.
A reputable LTL carrier offers transparent pricing and uses technology for enhanced shipment visibility, so look for carriers who are effective communicators and willing to work with you to improve your logistics.
Using Technology for Monitoring and Management
Real-time tracking systems enhance visibility, allowing businesses to monitor shipment locations and estimated delivery times. Internet of Technology (IoT) devices also help facilitate communication between cargo and logistics networks, collecting data on temperature and humidity.
Data analytics from tracking technologies allow you to optimize processes and anticipate delays. Blockchain technology may also improve security and traceability in LTL shipping, streamlining processes with smart contracts.
Recovering Overcharges for Carrier Service Failures
If all else fails and something goes wrong with your shipment, you may be entitled to a freight claim. Claims occur when a delivery is late, damaged, or doesn’t happen at all, allowing you to recover some of your costs from the carrier handling the shipment.
At Zero Down, our freight claims management solutions ensure you get the service you pay for, allowing you to keep costs down and increase service quality.
For example, we helped a client who was unable to file claims for service failures and damaged shipments work with their carrier to resolve the issue, which led to over $55k in recoveries in just a few months.
What Does the Future of LTL Freight Look Like?

Several emerging trends and market dynamics shape the future of LTL freight. Increasing e-commerce demand and complex supply chains drive market growth, increasing the importance of effective LTL management. Additionally, technological advancements like AI and IoT are expected to enhance the efficiency and sophistication of LTL operations.
Capacity constraints, influenced by driver shortages and regulatory changes, pose significant challenges in the LTL market. The rise of on-demand delivery services also influences the operational dynamics of LTL freight, requiring carriers to adapt to new models.
In the future, you can expect to see continued e-commerce growth, increased technology use for optimization, and a greater emphasis on sustainability. These trends will shape LTL carrier and shipper strategies in the coming years and increase the importance of eco-friendly, cost-effective shipping.
Unlock Flexible and Cost-Effective Flexible Shipping with LTL Freight
Understanding LTL freight is crucial for businesses aiming to optimize shipping operations and reduce costs. LTL freight offers a cost-effective, flexible, and environmentally friendly shipping solution for businesses of all sizes.
Shippers can optimize their logistics operations by understanding how LTL freight works, how rates are determined, and how to choose the right carriers. Implementing best practices in packaging, tracking, and overcoming common challenges will further enhance the efficiency of shipments.
As the logistics landscape evolves, staying informed about industry trends and technological advancements will be key to leveraging the full potential of LTL freight.
Frequently Asked Questions
What is LTL shipping?
Less Than Truckload (LTL) shipping, is a cost-effective method used for transporting smaller shipments that do not occupy an entire truck. It allows businesses to save on shipping costs while ensuring timely delivery.
How are LTL freight rates determined?
LTL freight rates are primarily determined by the package’s freight class, which is determined by size, weight, density. Other factors include distance and any additional services needed.
What is the weight limit for LTL shipping?
The typical weight limit for LTL shipping is up to 20,000 pounds, but it can vary by carrier, so it’s essential to first confirm specific carrier limitations.
How do LTL carriers operate compared to full truckload carriers?
LTL carriers operate by consolidating multiple shipments from various customers onto one truck, transporting them between terminals, whereas full truckload carriers utilize a single truck to deliver a customer’s goods directly. This distinction enables LTL carriers to cater to smaller shipment needs, promoting cost efficiency for shippers.
Brad McBride, CEO and Founder of Zero Down Supply Chain Solutions is a dynamic leader with over 30 years of experience in the supply chain sector. His journey began at Consolidated Freightways in 1988, where he mastered freight logistics and pricing. His career led him to Eagle Global Logistics, diving into international freight forwarding and leading high-volume shipping projects.
Read More