What Is Less-Than-Truckload Shipping?

If you’re in the freight industry, you know there are different ways to move cargo. Moving a full trailer is convenient and cost-effective, but what do you do when your shipment is smaller than the trailer? Shipping the container half-empty is a waste of space and more expensive than combining shipments. If you want to keep your trucks loaded and profitable, you should know what less-than-truckload shipping is.

What does LTL stand for?

Less-than-truckload(LTL) is an industry term for a type of shipping. If your freight is too big for parcel carriers like UPS but not big enough to fill an entire truck, you need LTL shipping. Instead of paying for the full trailer, shippers only pay for the space they use. Then, LTL carriers pick up freight from multiple shippers and put it all in one trailer. Consolidating everything is more cost-effective and energy-efficient than sending out several underfilled vehicles.

Each LTL freight carrier has a set freight weight range. Typical LTL weight guidelines range from 100 to 10,000 pounds, although some carriers will move heavier hauls. Over that weight, you’re better off booking a full truckload (FTL). Knowing these weight limits makes it easier to price and ship freight.

How does less-than-truckload shipping work?

LTL shipping works by consolidating freight from multiple shippers. The shippers send their freight to one central distribution center. Once all the freight gets to the distribution center, it’s sorted and shipped out on trucks based on destination. It moves from hub to hub with other freight orders until it eventually gets to its destination. Combining freight keeps costs low but requires extra handling. 

LTL rates are based on weight, distance, freight class, and special handling requirements. The more carriers can plan and consolidate loads, the more profitable LTL becomes. It’s a great way to fill gaps, boosting your earnings so trucks never run partially empty. It takes more coordination than FTL but saves on fuel costs.

Why use LTL shipping?

LTL shipping is a great option for shippers and carriers looking to move freight more efficiently. Combining shipments gets the cargo to its destination without wasting fuel on less-than-full vehicles. Choose LTL shipping for its:

• Cost-effectiveness: LTL shipping saves money by letting shippers pay for only the space they use. Instead of booking an entire truck, they split the cost with other shippers. Carriers get more revenue per mile, while shippers avoid paying for more space than they need.
• Environmental impact: Fewer trucks running half-empty means less fuel burned and lower emissions. LTL shipping optimizes trailer space, reducing the number of vehicles needed on the road and cutting down on greenhouse gases.
• Flexibility: LTL works well for businesses with smaller or irregular shipments. Carriers can fill gaps in their schedule with LTL loads, so trucks are always moving without committing to FTL runs. Plus, shippers get more shipping options instead of waiting around for a full load.
• Convenience: With LTL, shippers don’t need warehouse space to store large freight amounts. It’s also convenient for carriers—LTL terminals handle sorting and distribution, so drivers don’t have to manage multiple stops on their own.

Challenges for less-than-truckload carriers

While LTL shipping is an excellent option for most shippers and carriers, it can have some challenges. 

Transit time management

LTL shipments can take longer than FTL shipping. Instead of going straight from pickup to delivery, shipments move through multiple terminals and handling processes. This can lead to delays, especially if freight needs rerouting. Shippers and carriers must plan for slower transit times to avoid missing deadlines.

Freight class determination

LTL rates are based on freight class. Your load’s weight, density, handling needs, and liability can all drive up the cost. Misclassifying freight accidentally or to avoid higher costs can lead to misclassification fees and delays. Everyone involved in the freight process needs to understand freight classification to reduce the number of disputes and billing surprises they see.

How to make LTL shipping successful

LTL shipping is a great way to keep trucks loaded and earning, but you have to consider the extra planning involved. Whether you’re a carrier looking to maximize loads or a shipper trying to move freight, here’s how to make LTL shipping work for you.

1. Choose the right partners.

Not everyone handles LTL the same way. Some carriers specialize in regional hauls, while others focus on national routes. Choosing the right carriers can help your shipments move more quickly. Look for carriers with strong terminal networks, good handling practices, and reliable transit times.

For carriers, you’ll need to research loads, shippers, and brokers. Make sure you choose loads that work with your operation. Try to pick reliable shippers or loads that you can fill for backhauling. The more you plan your loads ahead of time, the easier it will be to get freight to its destination on time.

2. Optimize LTL freight.

LTL freight gets handled multiple times, so carriers need to plan for consolidation. Use digital tools to help optimize freight and fill trucks with LTL freight to avoid extra expenses. Look for shipments from the same region, or plan deliveries along your existing lanes to minimize empty or unnecessary miles.

Shippers should protect freight with proper packaging. Shrink-wrapping and labeling freight on pallets can help avoid misrouting and damage, which can eat into your bottom line.

3. Understand shipping costs.

LTL pricing isn’t as simple as FTL shipping. Since shippers pay for their trailer section, they will get charged based on size, weight, and handling. Shippers should double-check freight classification and explore freight insights to make sure they know how much everything will cost. 

Carriers can use their understanding of LTL pricing to help with negotiations and rate calculations. You can offer shippers deals for consolidated loads or backhauls. Carriers should also understand shipping costs when deciding to go LTL. Sometimes, FTL is the better option for profit and expenses.

4. Use the right tools.

Managing LTL freight manually is time-consuming and challenging for shippers and carriers. Digital load boards and transportation management system (TMS) software make it easier. Load boards help connect carriers with shippers and brokers to keep trucks loaded and moving. TMS software streamlines planning by automating rate comparisons, tracking shipments, and handling paperwork. If you want more convenient, accurate freight management, you need to invest in digital tools.

Find the best LTL loads with Truckstop

Success in LTL shipping comes down to the right tools and partners. With Truckstop’s products, shippers can find available trucks for their freight, and carriers can find cargo that needs to be moved. We work hard to make managing shipments easy for shippers, carriers, and brokers. With decades of experience, you can count on us to provide solutions that work. From finding and managing shipments to getting paid faster, we help you focus less on back-office tasks and paperwork and more on hauling loads and making money.

Simplify LTL freight with Truckstop. Request a demo today to see how we can help you find the right loads, reduce downtime, and grow your operation!