When you don’t have enough goods to fill up an entire truck, finding a shipping option that’s both cost-effective and reliable can feel challenging. That’s where Less Than Truckload (LTL) shipping comes in. Instead of paying for a whole truck, your shipment is combined with others headed in the same direction, helping you save on costs without compromising on delivery.
In this article, we’ll break down exactly what LTL shipping is, how it works, and the situations where it makes sense to use it. We’ll also cover the benefits and drawbacks, what factors affect LTL shipping rates, and how it compares to Full Truckload (FTL) shipping. Finally, we’ll share some key considerations to keep in mind when choosing an LTL shipping provider, so you can make informed decisions for your business. Read on to learn more!
What is Less Than Truckload (LTL) shipping?
LTL shipping is a form of trucking where multiple shippers share space on the same truck. Each business pays only for the portion of the truck that their cargo occupies, making it ideal for smaller shipments that don’t require the full truck’s capacity.
Most LTL shipments typically weigh between 68kg and 6,800kg, and are often organised on pallets for easier handling, loading, and unloading.
Here’s how LTL shipping typically works:
- Your goods are picked up and combined with shipments from other businesses.
- The truck may stop at several terminals to load and unload different shipments.
- Cargo is sorted and delivered to its final destination.
This model makes it possible to move smaller loads without the higher cost of booking a full truck.
What are the benefits of Less Than Truckload (LTL) shipping?
LTL shipping comes with several advantages, especially for businesses that don’t consistently move large volumes of freight, such as small and medium-sized businesses.
Lower costs
One of the biggest benefits of LTL shipping is that you only pay for the portion of the truck that your shipment occupies. This makes it far more affordable than booking a full truck, especially if your cargo does not come close to filling the entire space.
Flexibility
LTL shipping is ideal for businesses that ship smaller quantities on a regular basis. Instead of waiting until you have enough goods to fill an entire truck, you can send out shipments as they are ready. This helps keep your operations moving smoothly and reduces the need to hold excess inventory.
Environmental impact
By consolidating shipments from multiple businesses into one truck, LTL shipping helps reduce the number of vehicles on the road. Fewer trucks mean lower fuel consumption and reduced carbon emissions, making LTL a more sustainable shipping option.
What are the drawbacks of Less Than Truckload (LTL) shipping?
While LTL shipping is a cost-effective solution for smaller freight loads, it’s not without its trade-offs. Here are some of the most common drawbacks that you should consider:
- Longer transit times: LTL shipments are consolidated with freight from multiple shippers and often make multiple stops before reaching their final destination. This means delivery takes longer compared to Full Truckload (FTL) shipping, especially for longer routes or remote areas.
- Less control over the delivery schedule: With LTL, you’re sharing space and schedule with other shipments. This reduces flexibility, making it harder to schedule precise delivery times or last-minute changes. Guaranteed delivery options may be available, but they often come at an additional cost.
- Increased risk of damage or loss: As goods are loaded and unloaded several times, there’s a higher risk of minor damage, loss, theft, or even contamination. This can be a concern for fragile or high-value goods.
- Complex pricing: Rates are influenced by weight, dimensions, freight class, and accessorial charges, which can be harder to calculate upfront.
- Higher cost per unit: While LTL is cost-efficient overall, the price per unit (per kilogram or pallet) is usually higher than shipping in bulk via FTL.
Who should use Less Than Truckload (LTL) shipping?
LTL shipping is commonly used across a variety of industries where smaller, frequent, or palletised shipments are the norm. Some examples include:
- E-commerce and retail: Online stores and retail businesses often ship smaller batches of goods to customers or distribution centres. LTL allows them to move products without the cost of a full truckload.
- Manufacturing: Factories that send out machinery parts, components, or raw materials in smaller quantities benefit from LTL as it keeps costs manageable while ensuring a steady supply to their partners.
- Food and Beverage (F&B): Businesses shipping packaged foods, beverages, or ingredients in pallets can use LTL for regional distribution. Timely restocks without overcommitting to full truckloads help manage inventory better.
- Pharmaceuticals and healthcare: Hospitals, clinics, and distributors often move medical supplies and equipment in smaller, controlled shipments. LTL makes it easier to meet demand without overstocking.
What determines Less Than Truckload (LTL) shipping rates?
LTL shipping rates are determined by several key factors:
Freight class
The class is determined by the value of the goods, how fragile the shipment is, how easy they are to handle, and their density. The higher the class of the goods, the higher the shipping rates.
Weight
Generally, the more your shipment weighs, the more it costs overall. However, the cost per kg usually reduces as the shipment gets heavier. In other words, larger shipments benefit from economies of scale.
Dimensions
Aside from weight, the dimensions of your shipment matter too. Carriers will look at how much space your shipment takes up in the trailer. Low-density freight (big but light) can end up costing more because it limits how much else can fit in the truck.
Distance
The farther your freight travels, the higher the cost. The route your shipment takes can also impact both cost and transit time.
Extra services
If your shipment requires additional services, such as residential delivery, inside pickup, or special handling, your shipment cost will increase. Additionally, if you require expedited delivery, it will also cost more.
Comparison: LTL vs FTL shipping
| Less Than Truckload (LTL) shipping | Full Truckload (FTL) shipping | |
|---|---|---|
| Costs | Pay only for the space used | Pay for the entire truck |
| Shipment size | 68 – 6,800 kg | Above 6,800 kg |
| Transit time | Longer (multiple stops) | Faster (direct delivery) |
| Handling | More frequent handling | Minimal handling |
| Best for | Smaller, frequent shipments; SMEs | Large, single shipments |
Factors to consider when choosing a Less Than Truckload (LTL) shipping provider
Not all freight forwarders or carriers are the same, and the right partner can make a big difference in both cost and peace of mind. Here are some important factors to keep in mind when evaluating LTL shipping providers:
Reliability and reputation
Look into the provider’s track record for on-time deliveries and safe handling of goods. A company with strong reviews, repeat customers, and years of industry experience will usually offer more dependable service.
Network reach
Consider whether the provider’s network covers all the regions you need. A broad network means fewer handoffs and smoother transitions, which can help minimise delays or risks of loss and contamination.
Transit times and scheduling
Since LTL shipments share space with others, delivery speed depends on routes and schedules. Ask about estimated transit times and how flexible they are with pickups and deliveries.
Security and handling practices
With multiple touchpoints, there’s a higher risk of loss, theft, or damage. A reliable provider should have robust security measures, staff training, and clear handling protocols to protect your cargo.
Customer support
Problems, such as scheduling changes, damaged freight or other unexpected events, sometimes arise. Having responsive and knowledgeable customer service makes a big difference in resolving issues quickly.
Pricing transparency
LTL pricing can be complex, with charges for accessorials (like liftgate service or residential delivery). A trustworthy provider will give clear, upfront quotes and explain all potential surcharges.
Choosing M&P International Freights for your LTL shipping needs
LTL shipping can be a practical option for businesses that need to move smaller loads without paying for a full truck. While it may not be as fast or straightforward as FTL, the cost savings and flexibility often outweigh the trade-offs.
By understanding how LTL works, its pros and cons, and the factors that influence pricing, you’ll be better equipped to decide whether it’s the right fit for your logistics needs. If you require LTL shipping services, get in touch with our team here at M&P International Freights for a free quotation today!