What Is a Less Than Truckload LTL Shipment?

Top Insights

What it is: Multiple shippers’ freight (1–6 pallets or 150–15,000 lbs) shares one trailer, each paying only for the space they use.
Cost-effective: Shippers save by not paying for a full truck; unused space is filled with other loads.
Flexibility: Ideal for smaller shipments that don’t require a full trailer and need more frequent dispatches.
Longer transit: Multiple pickups and deliveries en route mean slower delivery times compared to FTL.
Higher handling risk: Frequent loading/unloading increases the chance of damage if packaging isn’t robust.
Complex tracking: Multiple hubs can make status updates and ETA predictions less straightforward.
Specialized services: Many LTL carriers offer liftgate, inside delivery, and other add‑ons for varied customer needs.

As a broker, would you advise your client to pay for a full truck when they’re only shipping three or four pallets? Probably not.

Most clients expect you to find the most efficient and affordable option, and that’s exactly where Less Than Truckload (LTL) shipping becomes a valuable option.

Let’s dive into LTL, how it works, and why it’s essential in the transportation industry.

What Is A Less Than Truckload (LTL) Shipment?

An LTL shipment is a freight load that doesn’t require a full trailer.

Instead of using an entire truck for one customer, multiple shipments from different businesses share a trailer’s space. Each shipper pays only for the space their freight occupies, making it a more affordable option for smaller loads.

LTL is ideal for businesses that need to ship between 1 and 6 pallets or loads weighing 150 to 15,000 pounds.

Because several shipments are loaded and unloaded along the way, LTL deliveries often take longer than Full Truckload (FTL) shipping. Still, for many companies, the cost savings make it worth the trade-off.

How LTL Moves

You should think of the LTL shipping process as a bus system for parcels, operating on a hub-and-spoke model:

Local Pickup: A local driver picks up your freight, inspects it, and takes it to the local shipping terminal.
Sorting and Combining: Packages heading to similar destinations are grouped together and loaded onto a single, larger truck at a central terminal. This process is what we call “cross-docking“
Linehaul: The truck transports all the consolidated freight overnight between hubs.
Local Delivery: Once it reaches the destination terminal, the freight is sorted again and loaded onto a local delivery truck for the final drop-off.

LTL Service Levels

Standard vs Guaranteed LTL

When you choose standard LTL shipping, the carrier will provide you with an estimated delivery day. While there is often flexibility in the schedule, their main goal is always to deliver on the specified date.

Guaranteed LTL works a little differently. When choosing this option, the carrier will make a firm promise that your shipment will arrive on a specified date, or even by a certain time of day. This method will also cost you an additional fee. It’s important to note that a refund or credit is often available should the carrier not honor the date provided.

Volume LTL and When to Consider Partial Truckload

Carriers publish their own ranges for shipments that are too large for standard LTL but not large enough to fill an entire truckload. These ranges normally include:

Size: Roughly 6 to 12 pallets.
Weight: Often between 5,000 to 10,000 pounds.
Space: Longer linear-foot spans

You should compare partial truckload options if your freight exceeds the above-mentioned ranges.

Advantages of LTL Freight Shipping

Here are the key reasons why LTL is a popular choice for businesses with smaller loads:

✅ Cost-effective. Shippers only pay for the portion of the trailer their freight uses. The remaining space is filled with other shipments, which helps reduce the overall freight cost.
✅ Flexibility for smaller freight loads. LTL is ideal for businesses that don’t have enough freight to fill an entire truckload. It allows them to move products more frequently without waiting to accumulate a full load.
✅ Reduced environmental impact. Sharing trailer space means fewer trucks on the road for smaller shipments, which helps lower fuel use and emissions.
✅ Room for specialized services. Most LTL carriers offer shipping services like liftgate services and inside delivery. This makes it easier to serve various customers.

Disadvantages of LTL Freight Shipping

While LTL shipping provides cost savings, it also comes with certain challenges:

❌ Longer transit times. Shipping LTL freight often involves multiple stops. Your load shares space with other freight shipments with different pickup and delivery points.
❌ Higher risk of damage. LTL freight is handled more frequently during transit as the truckload shipments are loaded and unloaded at multiple terminals. Each transfer increases the chance of damage if items aren’t packaged properly.
❌ Complex tracking. Because LTL shipments move through different hubs, tracking can be less straightforward. Delays may also be harder to predict.

FAQs

1. What is the difference between LTL and FTL freight?

LTL freight is when multiple shipments share space on one truck. FTL (Full Truckload) freight is when an individual shipment takes up the entire trailer. LTL is more cost-effective for smaller loads, while FTL is faster and better for larger, single shipments.

2. What determines LTL rates?

LTL rates are based on factors like the freight’s weight and dimensions, the distance it travels, the freight class, and any specialized shipping services required, such as inside delivery, pickup, and liftgate services.

Final Thoughts

LTL shipping is a practical, cost-saving option for clients who don’t need an entire truck. As a freight broker, understanding how and when to use LTL helps you offer clients the right shipping method.

Want to learn how to use LTL shipping to better serve your clients and grow your brokerage?

The 90-Day Freight Broker Course covers key aspects of freight brokering, from licensing and operations to sales and marketing. You’ll also learn how to ensure customer satisfaction throughout the shipping process, negotiate LTL freight rates, and everything else to launch and run a successful brokerage.

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